Trust Laws in Cyprus

An International Perspective

Consultant editor Paolo Panico

Publication date:

12 December 2022

Length of book:

285 pages

Publisher

Globe Law and Business

ISBN-13: 9781787428782

The Cyprus International Trust Law was originally enacted in 1992 and amended in 2012. It is a modern and flexible piece of legislation expressly addressing the needs of international families relying on Cyprus to arrange their wealth. At the same time, Cypriot resident families can apply the Trustee Law 1955, which is based on English law, to govern their trusts. Trust Laws in Cyprus reviews both of these laws and places them in an international context, pointing out the solutions available on the island for wealth management, estate planning and asset protection purposes. Authored by well-known experts in this field, chapters specifically analyse the relevance of Cyprus trusts where settlors wish to retain certain powers, arrange their succession in a more flexible manner than would be possible under forced heirship provisions, or protect heirloom assets from creditor claims. The book also covers the taxation of Cyprus trusts, both international and domestic, and the functioning of the UBO register of trusts under the 5th EU AML Directive. This title is the only systematic review of the Cyprus trust laws in English. It will be an invaluable reference work to help lawyers and other private client advisers structure their clients' wealth. It will also assist professional trustees involved in the administration of Cyprus trusts, and be useful for accountants and tax advisers in relation to the tax treatment of various types of Cyprus trusts.

Foreword: Perspectives on the Cyprus international trust law journey 5 Peter G Economides Totalserve Management Limited Richard FG Pease Solicitor (England and Wales); Consultant (Geneva, Switzerland) Stella Kammitsi Raza Corporate Services Ltd; Chair – STEP Cyprus Part I The Cypriot legal system: an overview 13 Eleni Louca Christodoulos G Vassiliades & Co LLC Trusts in Cyprus under domestic law 25 Chrysthia PapacleovoulouVassiliou Open University of Cyprus Evi Papacleovoulou Law Chambers Nicos Papacleovoulou LLC Vakfs: the Islamic version of trusts 43 Paolo Panico Private Trustees SA; Chair – STEP Europe Charitable trusts and charitable organisations 59 Eleni Drakou Michael Kyprianou & Co LLC Part II The Cyprus International Trusts Law 1992–2012: new dynamics 77 Chrysthia PapacleovoulouVassiliou Open University of Cyprus Settlor reserved powers trusts 109 Emily Yiolitis Anemi Trustees Limited Beneficiaries’ right to information 117 Nicky Xenofontos N Xenofontos LLC Trustee investment powers and delegation 135 Savvas Georgiou Christodoulos G Vassiliades & Co LLC Protectors 145 Emily Yiolitis Anemi Trustees Limited Non-charitable purpose trusts 153 Panayiota Kouzoupi Christodoulos G Vassiliades & Co LLC The trustee’s ability to request directions from the court 165 Constantinos Constantinides Stefanos Marangos Christodoulos G Vassiliades & Co LLC Perpetuity and duration 177 Paolo Panico Private Trustees SA; Chair – STEP Europe Forced heirship: the ‘firewall legislation’ 183 Stella Kammitsi Raza Corporate Services Ltd; Chair – STEP Cyprus Asset protection trusts 201 Peter G Economides Totalserve Management Limited The trustee’s liability to third parties and mistake 209 Nicky Xenofontos N Xenofontos LLC The main ingredients of an international trust law – some proposals for reform 221 Paolo Panico Private Trustees SA; Chair – STEP Europe Nicky Xenofontos N Xenofontos LLC Analysis of Cyprus case law involving Cyprus international trusts 237 Chrysthia PapacleovoulouVassiliou Open University of Cyprus Part III Taxation 257 George Economides E & G Economides LLC Trusts and ultimate beneficial ownership registers in Cyprus 265 Eleni Drakou Michael Kyprianou & Co LLC Appendix 277 About the authors 279 About Globe Law and Business 285

Trust Laws in Cyprus is an excellent synopsis of the main trust law areas for domestic and international trusts. It is a fundamental addition to the Cypriot bibliography.