A Trust can be a valuable tool for protecting your property especially when the Trust is established in such a favourable jurisdiction as Cyprus. Being extremely flexible, Cyprus International Trust make Cyprus one the best jurisdictions someone may choose to establish a Trust. Consequently, the establishment of Cyprus International Trusts by non-residents is constantly growing.
On 30 June 2017, the Cyprus Commissioner of Taxation issued the Interpretive Circular No. 3 relating to the new rules governing the tax treatment of intra-group back-to-back financing arrangements.
On 1st of January 2019, the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the “Act”), which requires the establishment of adequate “economic substance” for legal entities that fall within its scope, came into force in the British Virgin Islands (“BVI”). Regulations and guidelines which will provide clarifications for the implementation of the Act are going to be issued. However, it is expected that these regulations and guidelines will not be available until March 2019.
