[BUYING AND SELLING REAL ESTATE IN CYPRUS]
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✓ The Cyprus International Trust (CIT) The Cyprus International Trusts Law has been coming in force in 1992 and the last amendment made in 2013. This legislation ranked the Republic of Cyprus as one of the best jurisdictions for the creation of an international trusts due to their advantages compare to other jurisdictions. The duration of the CIT may continue perpetuity. As provided in the legislation a CIT is deemed irrevocable. It may revoke only if it is clearly provided for such an option in the trust deed. Advantages Some of the advantages of the CIT are the exemption of the tax, for instance, income, gains, and profits from non-Cyprus sources are exempt from income capital gains tax, special defence contribution or any other taxes in Cyprus. Additionally, worldwide income, profit and gains are taxable in Cyprus only where the beneficiary is a Cyprus tax resident; beneficiaries who are non-residents of Cyprus are taxed only on Cyprus sourced income in accordance with the Cyprus income tax laws. Dividends received by a CIT are not taxable and not subject to withholding tax in Cyprus. Also, there is no estate duty or inheritance tax in Cyprus. It is worth to mention that the CIT may be used to protect assets from risks arising in tort, contract or otherwise in relation to transactions entered by the settlor.
legal framework regulating the registration and operation of alternative investment funds (AIF’s). The Law permits the registration of AIFs which are self – managed (by their board of directors) or externally managed by a fund manager and may be registered with unlimited number of persons or with limited number of persons, or as “Registered” AIFs. An AIF may be formed as a company with a fixed capital, a company with variable capital, a common fund or as a limited liability partnership with or without legal personality. ✓ Trusts and Beneficial Ownership The concept of “trust” is recognized under Cyprus law, and it is regulated by both statute and common law principles. Accordingly, real estate property can be made part of the trust estate and afford to the beneficiaries the rights that the settlor provides in the trust instrument. Trusts can be registered with the Land Registry Office over the real estate to which they relate to. The beneficiaries do not hold title over the real estate, as title is registered in the name of the trustee to hold it under the terms of the trust. The settlor appoints trustees . The trustees’ main duties are to administer the trust property prudently and to comply strictly with the terms of the trust. The general rule is that the trustees do not have the power to vary the terms of the trust under any circumstances.
ILN Real Estate Group – Buying and Selling Real Estate Series
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