Services · Trusts & private foundations

Cyprus trust

Updated 6 October 2026

A Cyprus trust follows English law, and trustees are licensed by the state. We find the trustee, agree the trust deed and enter the trust in the required registers.

Cyprus is a European Union country where trusts follow English law: the settlor transfers assets to a trustee, who holds them for the beneficiaries under the trust deed. For non-residents Cyprus has a separate International Trusts Law of 1992, amended in 2012, and trustees are licensed and supervised by state regulators. A Cyprus trust is chosen when a European jurisdiction familiar to banks is needed and when the family already has a Cypriot company or property on the island.

Who can act as trustee

Trustee services in Cyprus are a licensed activity under the law regulating companies providing administrative services (Law 196(I)/2012). The trustee is supervised by the Cyprus Securities and Exchange Commission, the Cyprus Bar Association or the Institute of Certified Public Accountants of Cyprus. A trust governed by Cyprus law must at all times have at least one trustee resident in Cyprus. So even if a second trustee is in another country, a licensed Cypriot partner is always needed.

What information about the trust is disclosed

• The supervisor's trust register. Each body that licenses trustees keeps a register of Cyprus-law trusts where one of the trustees is supervised by it.
• The beneficial ownership register of trusts. The Securities and Exchange Commission keeps a register of beneficial owners of trusts. It covers trusts whose trustee is in Cyprus, and trusts with a trustee outside the EU if they enter a business relationship or buy property in Cyprus.
• The companies' beneficial ownership register. If a trust owns a Cypriot company, the company lists the trust in its beneficial ownership filing: settlor, trustee, beneficiaries and protector. For Cyprus-law trusts the first three categories are mandatory.

The registers are not open to everyone, but they are available to the authorities and to those carrying out checks, so a Cyprus trust is a tool for succession planning and protection from business risks, not a way to hide the owner.

Taxes

A trust's taxes depend on where the settlor and beneficiaries live and where the assets are. If the trust owns a Cypriot company, the 2026 tax reform applies to it: 15% corporate tax instead of 12.5%, and abolition of deemed dividend distribution and stamp duty. In the settlor's country of residence the trust may be taxed under local trust and controlled foreign company rules. We model the tax before the trust is set up so that distributions do not become an unexpected tax event.

How the trust is set up

1. The task. Which assets go in, who the beneficiaries are, where they live, and whether there is a Cypriot company or property.
2. The trustee. We find a licensed Cypriot trustee and, if needed, add a second trustee in another country.
3. Checks. The trustee verifies the settlor and the source of funds under anti-money laundering rules.
4. Trust deed. We agree the beneficiaries, the protector, the distribution rules and the right to change the trustee.
5. Registration. The trustee enters the trust in the supervisor's register and the beneficial ownership register of trusts, and if the trust owns a company we update the company's beneficial ownership filing.
6. Asset transfer and administration. We transfer shares and property, open accounts and run the trust for its whole life.

Why trusts get refused

• No source of funds documents. A licensed trustee must obtain them before accepting assets.
• No resident trustee. Without a Cypriot trustee a Cyprus-law trust does not comply with the law.
• A trust set up on the eve of a dispute. A transfer made to defeat creditors can be challenged, so the trust is built well in advance.

Who a Cyprus trust suits and who it does not

A Cyprus trust is chosen by families who already have a Cyprus company, property on the island or accounts with European banks: the trustee, the bank and the registers sit within one EU system, and banks understand the structure well. It also suits carefully planned succession: the deed sets who receives distributions, when and on what terms, and a protector makes sure the trustee follows the settlor's wishes.

A Cyprus trust does not suit those who need complete confidentiality: beneficiary information goes into registers available to the authorities. Nor will it help a Russian citizen who lives in Russia and has no EU residence permit - more on that below.

Can a Russian citizen set up a trust in Cyprus in 2026

Cyprus applies EU sanctions. EU Regulation 833/2014 prohibits registering trusts and providing them with trustee, address and management services if a settlor or beneficiary is a Russian citizen or a person living in Russia. The ban does not apply if the Russian citizen also holds the citizenship of an EU country, the European Economic Area or Switzerland, or a residence permit in one of these countries.

So a Cyprus trust is possible for a Russian citizen with a Cyprus or other European residence permit, and not without one. We check the status of every settlor and beneficiary before drafting the deed.

Taxes for Russian tax residents

For a Russian tax resident, a Cyprus trust is a foreign structure without legal personality. The tax office must be notified of its establishment within 3 months, and a settlor who keeps control becomes a controlling person: the trust's profit may be taxed in Russia, and a controlled foreign company notification is filed every year. The Russia-Cyprus double tax treaty has been partly suspended since August 2023, so tax in both countries is calculated in advance. We prepare notifications and reporting on the controlled foreign companies page.

Trust or foundation: which to choose

A Cyprus trust is an arrangement: the assets are held by the trustee, not by an independent legal person. If the family needs an owner with a charter, a council and a register entry, a private foundation is considered - for example, a Malta foundation, also under EU law. The two forms are compared in the article trust or foundation: which to choose, and the Cyprus trust is covered in detail in the international trust in Cyprus.

What it costs and how long it takes

The cost depends on the number of participants, the assets and whether a company is needed. The deed is drafted in a few days, but the whole process takes several weeks: the trustee spends the longest checking the settlor, beneficiaries and source of funds and entering the trust in the registers.

What we do

We check whether Cyprus fits the task, find a licensed trustee, agree the trust deed, support registration and the asset transfer, and run the trust after it is set up. The cost depends on the assets and the structure, so we quote it after a consultation and fix it in writing. If the structure includes a Cypriot company, we take care of its accounts and audit: see Cyprus company audit. For a trust in another EU country see Malta trust, and owners' taxes are on our Cyprus taxes page.

What we do

• Trust establishment and maintenance

FAQ