Cyprus International Trusts & Foundations

Asset Protection, Estate Planning & International Wealth Structuring

What We Provide

A Cyprus international trust can provide an effective structure for asset protection, estate planning, succession and long-term wealth management. Potens guides individuals, families and international clients through the formation and administration of trusts in Cyprus.

We also support the establishment of Cyprus foundations as an alternative wealth-planning structure. Our team evaluates each client’s objectives, family circumstances and international connections to help determine the most appropriate solution.

From initial structuring and documentation to ongoing administration and compliance, we provide clear, professional support throughout the entire process.

Understanding Trusts

A trust is a legal arrangement used for asset protection, estate planning, succession, and tax structuring. For a trust to exist, all three core elements must be satisfied:

1️⃣ Settlor

The individual who creates the trust and transfers assets for the benefit of others.

2️⃣ Trustee

The person or entity responsible for managing the trust assets.
Assets must be fully segregated from the trustee’s own assets.
Cash, for example, is held in separate offshore or designated accounts.

3️⃣ Beneficiaries

Those who will ultimately receive the benefit.
If multiple, their identity must always be ascertainable

Modern Use of Trusts

Originally used for estate planning and supporting individuals unable to manage assets, trusts today are also widely used for:

Understanding Foundations

A foundation is the civil law alternative to a trust, similar purpose, different structure.

How a Foundation Works

Created by a Founder
Assets are transferred to a Foundation Council / Board
Administered for the benefit of designated beneficiaries
Governed by a Constitution

Key Benefits

Once established, the foundation becomes a separate legal entity
Assets are protected from claims against the Founder
While held inside the foundation, assets are also protected from claims against beneficiaries
In some jurisdictions, foundations enjoy full tax exemptions (income tax, wealth tax, inheritance tax, real estate tax, sales/transfer taxes)

Why Choose a Cyprus International Trust or Foundation?

Asset Protection & Confidentiality

A Cyprus international trust or foundation can support the protection and responsible management of family, personal or business assets. Each structure can also provide an appropriate level of confidentiality, subject to applicable legal and reporting obligations.

Succession & Estate Planning

Both structures can be used to establish clear arrangements for the long-term management and distribution of assets. This can support succession planning, estate planning and the protection of beneficiaries across generations.

Flexible International Structuring

Trusts and foundations can be tailored around the client’s assets, family circumstances, international connections and long-term objectives. Potens helps clients compare the available options and establish an appropriate structure with ongoing administrative support.

How It Works

Our process for establishing a Cyprus international trust or foundation provides clear guidance from initial planning and structure selection to formation and ongoing administration.

01.

Initial Consultation

Identify goals: asset protection, tax planning, estate planning, or investment structuring.

02.

Structure Selection

Determine whether a trust or foundation best suits your needs.

03.

Formation & Documentation

Draft trust deeds or foundation charters and appoint trustees/council members.

04.

Asset Transfer Administration

Ensure proper segregation of assets and ongoing compliance.

Looking for More Support?

We also provide accounting and bookkeeping services in Cyprus and legal advisory services to support the ongoing administration and compliance of appropriate structures.

Alternatively, book a consultation with our team to discuss your requirements and identify the right support for your business.

Talk to Our Experts

Start your Cyprus company journey with confidence.
Our team is here to guide you through every step, from formation to ongoing management.

Frequently asked questions

Who can establish a Cyprus International Trust?

A Cyprus International Trust may be established where the relevant legal conditions are met. Its structure must include a settlor, trustee and beneficiaries, and a trust governed by Cyprus law must retain at least one Cyprus-resident trustee.

What is the difference between a trust and a foundation in Cyprus?

A trust is a legal arrangement in which a trustee holds and manages assets for beneficiaries according to a trust deed. A foundation is a separate legal structure created for a defined purpose and governed by its founding documents and administrative body.

What types of assets can be placed in a Cyprus International Trust?

Depending on the structure and applicable laws, a trust may hold company shares, cash, investments, property and other assets. Each proposed asset should be reviewed before being transferred into the trust.

How is a Cyprus International Trust treated for tax purposes?

Tax treatment depends on factors including the tax residence of the beneficiaries, the source and type of income and the assets held. Potens coordinates appropriate legal and tax advice before the structure is established.

Cyprus trusts are also subject to beneficial ownership and registration requirements. CySEC trust guidance