Cyprus International Trusts

Friday, 07 December 2012 07:53

Background, Legislation and the Competitive Advantages of Cyprus

Originating from the English law of Equity, the Trust is a widely used instrument in common Law jurisdictions such as Cyprus. Through the years and through statutory amendments, the legislation in Cyprus has been modernized to ensure that Trusts remain to the forefront of estate planning and succession tools available to practitioners and advisors for the benefit of their Clients. The uses of Trusts range from the traditional probate avoidance, succession planning, conveyance of assets between generations, asset protection and privacy, to the more ‘modern’ uses as wealth management tools, as a result of the rapid globalization of the investment process and products, and the tremendous expansion to the investment options now available to Trustees. The original legislation in Cyprus was enacted in 1992 and it is known as the International Trusts Law (Law No. 69(1)/1992). This has been amended by the International Trusts (Amendment) Law of 2012, to bring the legislation in line with trends and development in the area of asset protection and in line with the needs of Investors/Estate Planners today. The amendment was necessary considering the growing number of new investment opportunities, investments practices and developments in International Trust legislation and practices. Combined with the other characteristics and strong points of Cyprus that have made it one of the most prominent International Financial Services Centers, the Cyprus International Trust is an instrument of great flexibility, offering settlors and beneficiaries the highest degree of protection and unmatched tax optimization structuring opportunities.


Thursday, 06 December 2012 15:02

Which are the major Cyprus laws in respect to Will and Succession?

The succession law in Cyprus is regulated by:

  • The Wills and Succession Law, Cap 195 which regulates the law in respect to wills and succession which was enacted in 1945 and since then it has undergone only 2 amendments. It is a composite edition of the English, the Ottoman and the Italian Law.
  • The Administration of Estates Law, Cap 189 which regulates the procedure regarding the evidence and the execution of wills and the administration of the estate of the deceased.
  • The Probates (Re-Sealing) Law, Cap 192 which is applicable in cases where the deceased passed away in UK or in another Commonwealth country and at the time of his death he had property in Cyprus. Specifically, Cap 192 regulates the procedure by which the Cyprus Courts re-seal the Letters of Administration or the Grant of Probate which was issued by courts in UK or in any Commonwealth country and an administrator is appointed for the estate of the deceased located in Cyprus.

Contract Law

Thursday, 06 December 2012 14:42

Cyprus contract law

The Contract law of Cyprus which is contained in Cap. 149 of the Laws of Cyprus, originally enacted in 1957, during the time at which Cyprus was a British colony, is very similar to some extent identical to Indian Contract Law. As a result, assistance in its interpretation may be derived from Indian sources (A classic reference is Pollock & Mullaha’s Indian Contract and Specific relief Acts. See also Saab v The Holy Monastery of Ayios Neophytos (1982) 1 CLR, 499). In the course of this short Article, the object of which is to give a short nut comprehensive idea of Cyprus Contract Law, certain particularities of the Cypriot contract law will be demonstrated as well as some deviations from the English Contact Law from which the Cyprus and Indian Contract laws derive their roots.




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