{"id":123558,"date":"2026-01-09T09:01:40","date_gmt":"2026-01-09T09:01:40","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=123558"},"modified":"2026-01-09T09:01:40","modified_gmt":"2026-01-09T09:01:40","slug":"cyprus-private-client","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/cyprus-private-client\/","title":{"rendered":"Cyprus: Private Client"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-123558","comparative_guide","type-comparative_guide","status-publish","hentry","guides-private-client","jurisdictions-cyprus"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">S.A. Evangelou &amp; Co LLC (the PwC Network Legal Practice in Cyprus)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/01\/thumbnail_image.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">S.A. Evangelou &amp; Co LLC (the PwC Network Legal Practice in Cyprus)<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/01\/thumbnail_image.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Private Client laws and regulations applicable in Cyprus<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which factors bring an individual within the scope of tax on income and capital gains?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Income Tax (\u201cIT\u201d)<\/strong><\/p>\n<p>Cyprus tax resident individuals pay IT on their worldwide income.<\/p>\n<p>Non-Cyprus tax resident individuals are taxed on certain types of Cyprus-sourced income.<\/p>\n<p><strong>Capital Gains Tax (\u201cCGT\u201d)<\/strong><\/p>\n<p>The scope of CGT in Cyprus is limited. It is imposed on gains made as a result of the disposal of:<\/p>\n<ul>\n<li>Real estate in Cyprus (which is not otherwise subject to IT); or<\/li>\n<li>Shares in a company that directly owns real estate in Cyprus; or<\/li>\n<li>Shares in a company that indirectly owns real estate in Cyprus, provided that at least 50% of the value of the shares derives from the market value of the real estate.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the taxes and rates of tax to which an individual is subject in respect of income and capital gains and, in relation to those taxes, when does the tax year start and end, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Income Tax (\u201cIT\u201d)<br \/>\nThe IT rates applicable to individuals are the following:<\/p>\n<table>\n<tbody>\n<tr>\n<td>Chargeable income for the Tax Year<\/td>\n<td>Tax Rate<\/td>\n<\/tr>\n<tr>\n<td>EUR<\/td>\n<td>%<\/td>\n<\/tr>\n<tr>\n<td>First 19.500<\/td>\n<td>Nil<\/td>\n<\/tr>\n<tr>\n<td>From 19.501 \u2013 to 28.000<\/td>\n<td>20<\/td>\n<\/tr>\n<tr>\n<td>From 28.001 \u2013 to 36.300<\/td>\n<td>25<\/td>\n<\/tr>\n<tr>\n<td>From 36.301 \u2013 to 60.000<\/td>\n<td>30<\/td>\n<\/tr>\n<tr>\n<td>Over 60.000<\/td>\n<td>35<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Exemption on employment income<\/strong><\/p>\n<p>Subject to certain conditions, expats relocating to Cyprus may be eligible for 50% \/ 20% exemption on their employment income. In most cases the exemption applies to new employments in Cyprus.<\/p>\n<p>Certain employees and executives of specific investment fund management companies or internally managed investment funds may opt for a different mode of personal taxation so that their variable employment remuneration which is effectively connected to the carried interest of the fund managing entity may, through an annual election, be separately subject to Cyprus tax at the flat rate of 8%, with a minimum tax liability of \u20ac10.000 per annum. This special mode of taxation is available for a period of 10 years.<\/p>\n<p><strong>Capital Gains Tax<\/strong><\/p>\n<p>CGT is imposed (where the disposal is not subject to IT) at a rate of 20% on the gain.<\/p>\n<p><strong>Deadlines<\/strong><\/p>\n<p>For the purposes of IT, the tax year is the calendar year, i.e. 1 January to 31 December of each year.<br \/>\nThe deadlines for:<\/p>\n<ul>\n<li>employees, pensioners and self-employed individuals not required to prepare audited financial statements:<\/li>\n<li>Tax return deadline: 31 July of the following year;<\/li>\n<li>IT payment deadline: 31 July of the following year.<\/li>\n<li>self-employed individuals required to prepare audited financial statements:<\/li>\n<li>Tax return deadline: 31 March of the second year thereafter;<\/li>\n<li>IT payment deadline: 1 August of the following year.<\/li>\n<\/ul>\n<p>CGT tax forms should be filed, and CGT paid within one month from the disposal and before the transfer of the immovable property.<\/p>\n<p><strong>Social insurance contributions and healthcare contributions<\/strong><\/p>\n<p>The social insurance contributions for employees are 8.8% of emoluments by the employee and 8.8% by the employer.<\/p>\n<p>The contributions of self-employed persons are 16.6% of their income.<\/p>\n<p>Contributions to general health system range from 2,65% to 4,70%.<\/p>\n<p>Both social insurance and healthcare contributions are capped by an annual income ceiling.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous tax regimes for individuals directly investing in or holding certain types of assets from an income tax or capital gains tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Investments in approved innovative enterprises<\/strong><\/p>\n<p>Amounts invested each year (either directly or, in certain cases, indirectly) in approved innovative small\/medium sized enterprises may be claimed as tax deductible for IT purposes. The deduction is capped at 50% of the taxable income calculated prior to claiming this deduction, subject to a maximum deduction of EUR 150,000 per year. Unused deduction can be carried forward and claimed in the following five years, subject to the caps mentioned.<\/p>\n<p>The deduction is currently available up to 31 December 2026.<\/p>\n<p><strong>Investments in audiovisual infrastructure and technological equipment<\/strong><\/p>\n<p>Individuals investing in audiovisual infrastructure and technological equipment related to the audiovisual industry are entitled to a 20% deduction from their taxable income for the cost of such investment, subject to certain criteria and conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are withholding taxes relevant to individuals and, if so, how, in what circumstances and at what rates do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Salaries<\/strong><\/p>\n<p>Employers have an obligation to withhold IT on salaries under the Pay-As-You-Earn system.<\/p>\n<p><strong>Payments to non-Cyprus tax residents<\/strong><\/p>\n<p>Cyprus does not levy withholding taxes on the payment of dividends or interest to non-Cyprus tax residents.<\/p>\n<p><strong>Payments to Cyprus tax residents<\/strong><\/p>\n<p>Cyprus tax resident individuals who also have Cyprus domicile are liable to Special Defence Contribution (\u201cSDC\u201d) in respect of the following types of income:<\/p>\n<ul>\n<li>dividends (17%);<\/li>\n<li>passive interest (17%); and<\/li>\n<li>rent (reduced by 25% at the rate of 3%).<\/li>\n<\/ul>\n<p>For Cyprus sourced interest and dividends SDC due is withheld at source.<br \/>\nCyprus tax resident individuals who do not have Cyprus domicile fall outside the scope of SDC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction approach the elimination of double taxation for individuals who would otherwise be taxed in the jurisdiction and in another jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A tax credit is granted in Cyprus for taxes paid abroad, either through a double tax treaty (\u201cDTT\u201d) (Cyprus has entered into 60+ DTTs) or through unilateral relief (where there is no DTT).<\/p>\n<p>Cyprus signed the Multilateral Convention to Implement Tax Treaty Related Measures (\u201cMLI\u201d) to Prevent Base Erosion and Profit Shifting on 7 June 2017. Cyprus also ratified the MLI on 23 January 2020.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a wealth tax and, if so, which factors bring an individual within the scope of that tax, at what rate or rates is it charged, and when must tax returns be submitted and tax paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Cyprus there is no wealth tax (gift tax or inheritance tax).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is tax charged on death or on gifts by individuals and, if so, which factors cause the tax to apply, when must a tax return be submitted, and at what rate, by whom and when must the tax be paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No tax is charged on death or on gifts by individuals.<\/p>\n<p>The executor\/administrator of the estate of the deceased is however required, by the Deceased Persons Estate Law, to submit to the tax authorities a statement of assets and liabilities of the deceased within six months from the date of death. The reason being to enable the tax authorities to consider and finalise any open matters in respect of the tax affairs of the deceased up to the date of his\/her death and safeguard payment of any taxes due.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are tax reliefs available on gifts (either during the donor\u2019s lifetime or on death) to a spouse, civil partner, or to any other relation, or of particular kinds of assets (eg business or agricultural assets), and how do any such reliefs apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The following gifts are exempt from CGT:<\/p>\n<p>a. from parent to child;<\/p>\n<p>b. between spouses;<\/p>\n<p>c. between relatives up to the third degree;<\/p>\n<p>d. from an individual to a company, where all the company\u2019s shareholders are (at the time of the gift), and continue to be for five years thereafter, members of the donor\u2019s family (i.e., spouse and\/or relatives up to the third degree); and<\/p>\n<p>e. by a family company to its shareholders, provided such property was originally acquired by the company by way of gift. The property must be kept by the done for at least three years.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the tax laws encourage gifts (either during the donor\u2019s lifetime or on death) to a charity, public foundation or similar entity, and how do the relevant tax rules apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, cash donations to approved charities are deductible for IT purposes.<\/p>\n<p>Gifts of real estate to approved charities are also exempt from CGT.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is real property situated in the jurisdiction taxed, in particular where it is owned by an individual who has no connection with the jurisdiction other than ownership of property there?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Cyprus there is no immovable property tax.<\/p>\n<p>In Cyprus, there is also a small annual municipal tax on a recorded value of real estate, applicable at a rate not exceeding 0.05% of the value of the real estate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have any specific rules in relation to the taxation of digital assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cyprus does not have any specific rules in relation to the taxation of digital assets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are taxes other than those described above imposed on individuals and, if so, how do they apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The VAT legal framework in Cyprus is fully in line with the European Union (\u201cEU\u201d) framework.<\/p>\n<p>In addition to normal business activities which usually constitute the supply of goods and services for VAT purposes, the disposal of real estate may, under certain circumstances, render an individual liable to register as a taxable person for VAT purposes. Subject to certain conditions (e.g., town planning zones) the disposal (by way of sale or otherwise) of real estate may be subject to VAT.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction provide advantageous special tax regimes for individuals from a wealth tax, inheritance\/estate tax or gift tax perspective?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Please refer to the answers provided in Questions 6,7 and 8.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What steps might an individual be advised to consider before establishing residence in (or becoming otherwise connected for tax purposes with) the jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The relocation of an individual to Cyprus may trigger tax implications on any entity the individual is an employee or a director\/manager.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Once an individual has left (and is no longer connected for tax purposes with) the jurisdiction, does the jurisdiction charge any form of exit tax or retain taxing rights over the individual's directly held assets or structures which they created or have an interest in?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No exit tax is imposed on individuals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main rules of succession, and what are the scope and effect of any rules of forced heirship? Do any forced heirship rules apply automatically, or is it necessary for heirs to bring claims to enforce their rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Succession Laws of Cyprus provide for a mixed system i.e. a system which recognises the right of a person to leave property by will subject to the application of forced heirship rules depending on the personal circumstances of the person e.g. whether married with children or not. Under this mixed system, a deceased may leave part of his estate by will to whoever he wishes while the rest of his estate will go to his heirs.<\/p>\n<p>As such, forced heirship rules in Cyprus apply automatically under the Wills and Succession Law, meaning that statutory shares for close relatives are reserved by law and cannot be overridden by a will. However, while the entitlement exists by default, heirs generally need to initiate formal steps such as applying for probate or letters of administration to ensure the estate is distributed correctly. If a will breaches the forced heirship limits or disputes arise, heirs may also need to bring claims before the court to enforce their rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a special regime for matrimonial property or the property of a civil partnership, and how does that regime affect succession?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Community property is not part of Cyprus Law. The matrimonial property regime in Cyprus recognises that each spouse\u2019s property is his or hers (i.e. personal) even if acquired after marriage. The matrimonial property rules are triggered only on divorce and such rules do not apply to all property.<\/p>\n<p>Under Cyprus Law, marriage settlements\/agreements for the distribution of property of the spouses, concluded prior to the marriage\/separation of the spouses, are not binding; the Cyprus Family Courts are bound to disregard them. In principle pre\/postnuptial agreements are not recognised and enforced in Cyprus. However, a foreign judgement recognising a pre\/postnuptial agreement and regulating potential property claims between spouses, subject to certain requirements being satisfied, may be recognised and enforced in Cyprus.<\/p>\n<p><strong>EU Matrimonial Property Regulation (2016\/1103) (\u201cMPR\u201d)<\/strong><\/p>\n<p>Since 2019, in case of divorce proceedings in Cyprus, the MPR forms part of the legal framework regulating the determination of property rights of spouses with cross-border or international connections.<\/p>\n<p>The MPR provides a universal application and establishes that the applicable law designated shall be applied whether or not it is the law of an EU Member State and regardless of where the assets are located. As a result of the MPR coming into force in Cyprus, prenuptial or postnuptial agreements may now be recognised and enforced by Cyprus Courts.<\/p>\n<p>The Civil Partnership Law (184(I)\/2015) provides that the institution of civil partnerships are recognised under Cyprus law and are afforded the same protection as spouses under the Cyprus Marriage Law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors cause the succession law of the jurisdiction to apply on the death of an individual?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cyprus is bound by the EU Succession Regulation 650\/2012 (\u201cSuccession Regulation\u201d).<\/p>\n<p>The general rule established is that the succession of a person who has a connection with an EU Member State is governed by the succession laws of his country of habitual residence or country of his citizenship (if a choice for the latter is made) irrespective of where his assets are situated.<\/p>\n<p>If there is no cross-border connection, then the Cyprus succession rules will apply to persons who have the Cyprus Domicile.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the jurisdiction deal with conflict between its succession laws and those of another jurisdiction with which the deceased was connected or in which the deceased owned property?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>From the Cyprus Law perspective such issues will be dealt with in accordance with the provisions of the Succession Regulation i.e. by the laws of habitual residence or, if chosen, nationality. Cyprus has bilateral agreements with non-EU Member States which regulate succession matters regarding the recognition of wills, enforcement of relevant court orders and other legal declarations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances should an individual make a Will, what are the consequences of dying without having made a Will, and what are the formal requirements for making a Will?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a person dies intestate, the forced heirship rules of Cyprus will apply and specific heirs will inherit the entire net estate. Having a will in place allows the testator to leave a percentage of his estate freely. When a person dies testate, a grant of probate must be obtained by the executor of the will.<\/p>\n<p>In order for a will to be valid under Cyprus Law:<\/p>\n<ol>\n<li>The testator and witnesses must be of sound mind and at least 18 years old.<\/li>\n<li>The will must be in writing and executed at the end by the testator (or by some other person on his behalf, in his presence and by his direction).<\/li>\n<li>The signature must be made in the presence of two witnesses present at the same time and such witnesses shall sign\/initial each sheet and shall sign the will in the presence of the testator.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the estate of a deceased individual administered and who is responsible for collecting in assets, paying debts, and distributing to beneficiaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the event a person dies intestate, a close relative has to apply to the Court for letters of administration i.e. to appoint an administrator of the estate. In the event that a person dies testate, the executor must apply to the courts for a grant of probate.<\/p>\n<p>The executor or administrator must file several documents at Court together with the application. Once formally appointed, the executor or administrator must collect all information regarding the assets and liabilities of the estate, file statements at the Court declaring this information and update the Court on the course of the administration procedure.<\/p>\n<p>The executor or administrator must pay any taxes due to the authorities and obtain discharge from the tax authorities. Thereafter, they can distribute the estate to the heirs, file final accounts at Court and close the administration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the laws of your jurisdiction allow individuals to create trusts, private foundations, family companies, family partnerships or similar structures to hold, administer and regulate succession to private family wealth and, if so, which structures are most commonly or advantageously used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Cyprus International Trust (\u201cCIT\u201d) Law offers international families the opportunity to create trusts with advantageous features. Cyprus residents may create Trusts as well. The same principles equally apply to such Trusts although such Trusts do not enjoy all the advantages of a CIT.<br \/>\nCompanies Limited by Guarantee (\u201cCLG\u201d) can provide an alternative to trusts and foundations and may provide increased asset protection where required because of their nature. The main features of CLGs are:<\/p>\n<ol>\n<li>Limited liability for members up to the amount they undertake to pay in the event of winding up;<\/li>\n<li>Members not having a property right;<\/li>\n<li>Easy entry\/exit in the company;<\/li>\n<li>No capital required;<\/li>\n<li>DTT protection.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are these structures constituted and what are the main rules that govern them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A CIT is established under the Cyprus International Trusts Law of 1992 (as amended). The CIT is formalised through a trust deed, which is a legal document setting out the terms and conditions of the trust, including the specification of assets within the trust and the powers and responsibilities of the trustees.<\/p>\n<p>To be eligible for a CIT, the Settlor and the Beneficiaries must not be tax resident in Cyprus in the calendar year preceding the creation of the Trust and at least one Trustee must be tax resident in Cyprus for the duration of the Trust.<\/p>\n<p>Companies are incorporated and registered with the Registrar of Companies in Cyprus (\u201cRegistrar\u201d) in accordance with the Companies Law. The constitutional documents (namely the Memorandum and Articles of Association) must be signed by the original shareholder(s) and a minimum of one director and a secretary appointed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the registration requirements for these structures and what information needs to be made available to the relevant authorities? To what extent is that information publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The constitutional documents, details of the directors, secretary, registered office and shareholders of Cyprus companies are publicly available on the Registrar\u2019s website or through a search. Details of the ultimate beneficial owners, if different from the shareholders, are not publicly available.<\/p>\n<p>The Registrar maintains a beneficial ownership register (\u201cBO Register\u201d). The BO Register is a centralised register that contains information about the beneficial owners of Cyprus entities.<\/p>\n<p>The Trustees of a Trust governed by Cyprus Law must register certain details of the Trust with their relevant Regulatory Authority.<\/p>\n<p>The Trustees (when resident or domiciled in Cyprus or when resident in a third country or jurisdiction and enter into a business relationship or acquire real estate in Cyprus) must register details of the Trust and parties to the Trust in the Cyprus Trusts and Beneficial Ownership Register (\u201cCyTBOR\u201d). Details registered are not publicly available.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Trusts<\/strong><\/p>\n<p>The Tax Commissioner in Cyprus (i) treats trusts as tax transparent (i.e. trusts are not treated as tax entities) and (ii) taxes the Trustee(s) as agent(s) of the Beneficiaries.<\/p>\n<p>However, the Settlor of the trust may be liable to tax for any taxable income or taxable gain attributed to a minor Beneficiary.<\/p>\n<p><strong>In relation to CITs:<\/strong><\/p>\n<p>(i) Where the Beneficiary is resident in Cyprus, the income and profits of a CIT which are earned or deemed to be earned from sources within and outside of Cyprus, are subject to every form of taxation imposed in Cyprus; and<\/p>\n<p>(ii) Where the Beneficiary is not a resident of Cyprus, certain income and profits of a CIT which are earned or deemed to be earned from sources within Cyprus, are subject to every form or taxation imposed in Cyprus.<\/p>\n<p><strong>Foundations<\/strong><\/p>\n<p>IT Law provides that the income of any non-for-profit organisation including a foundation, or a company formed exclusively for the purpose of promoting art, science or sport, not involving the acquisition of profit by such company or by its individual members, and whose activities are confined solely to that purpose, should be exempt from IT (subject to the conditions imposed by the Council of Ministers).<\/p>\n<p>Foundations may also be subject to SDC.<\/p>\n<p><strong>CLGs<\/strong><\/p>\n<p>CLGs are subject to IT law. The exemption from IT relating to charities applies to charitable CLGs as well.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign trusts, private foundations, etc recognised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign trusts and foreign private foundations are recognised in Cyprus.<\/p>\n<p>Cyprus is a member of the Hague Convention on the Law applicable to Trusts and on their Recognition. Foreign Private Foundations are recognised in Cyprus and may hold assets situated in Cyprus.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are such foreign structures and their settlors, founders, trustees, directors and beneficiaries treated for tax purposes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Foreign Trusts<\/strong><\/p>\n<p>In terms of IT, the crucial test for the tax treatment of any income is the tax residency of the Beneficiaries. In terms of CGT, the crucial test for the tax treatment of any capital gain is the location of the real estate which must be in Cyprus.<\/p>\n<p><strong>Foreign Foundations<\/strong><\/p>\n<p>Where the structure has a separate legal personality and the fiduciary (whether the donor and\/or Beneficiary or a third person) is Cyprus tax resident and effectively manages and controls the structure, tax implications may arise in Cyprus.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can trusts, private foundations, etc be used to shelter assets from the creditors of a settlor or beneficiary of the structure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Law governing CITs offers strong asset protection. Once assets are transferred to Trustees of a CIT, they are legally separated from the Settlor\u2019s estate and shielded from creditors, provided the transfer was not fraudulent. Creditors can only challenge transfers within two years of the trust\u2019s creation; after this period, claims will not be accepted by the Cyprus courts. This makes CITs highly effective for safeguarding wealth against future liabilities, litigation, or family disputes.<\/p>\n<p>A CLG also offers a unique advantage for safeguarding assets because membership does not represent an economic asset that creditors can seize. Unlike shareholding, membership only confers governance rights, meaning personal exposure is minimal and creditors cannot directly attack the member\u2019s position. While the company\u2019s own assets remain subject to its obligations, this structure provides continuity, control, and a layer of separation between individual members and the assets held within the CLG, making it an attractive option for families or HNWIs seeking a secure, compliant, and flexible vehicle for asset holding and succession planning.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What provision can be made to hold and manage assets for minor children and grandchildren?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trusts offer an effective way to plan for minor children and grandchildren. The Settlor may determine the purposes and terms of the Trust based on their own specific and personal circumstances. Checks and balances may be also put in place by appointing a Protector(s) with an oversight role and with certain powers (e.g., to approve certain decisions or to provide their consent before the exercise of certain Trustee powers).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are individuals advised to create documents or take other steps in view of their possible mental incapacity and, if so, what are the main features of the advisable arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Cyprus it is currently not possible to appoint (via a lasting power of attorney or otherwise) a personal representative or an agent to manage the affairs of a person who (permanently\/temporarily) becomes incapable of acting because of an accident or serious illness or other reason. In such a case, a personal representative must be appointed through the Court.<\/p>\n<p>This personal representative is accountable and must report to the Court at regular intervals. An administrator in such cases is appointed at the application of any parent, child or other relative or person who has a legitimate interest.<\/p>\n<p>Cyprus has ratified the Hague Convention on the International Protection of Adults. Accordingly, Cypriots having an international connection with countries that have also ratified this Convention and foreigners who have a Cyprus connection, may issue lasting powers of attorney to their attorneys to deal with their affairs following their incapacity which will be recognised and be given full effect in Cyprus.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What forms of charitable trust, charitable company, or philanthropic foundation are commonly established by individuals, and how is this done?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A charitable entity established by individuals commonly takes the form of either a company limited by guarantee which is registered with the Registrar of Companies, a foundation which is registered with the Commissioner or a charitable trust which is usually recorded in a trust deed setting out the purposes of the trust.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the jurisdiction's approach to information sharing with other jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All Registers in the EU, including those kept in Cyprus in line with EU law, are interconnected with a Central Platform kept by the EU. Being an EU Member State, Cyprus is bound by EU legislation on cooperation for tax matters to share information with other Member States. Furthermore Cyprus has a wide network of DTTs with many countries which also provide for sharing of information.<\/p>\n<p>Please also refer to the answer provided in Question 24.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What important legislative changes do you anticipate so far as they affect your advice to private clients?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Cyprus currently there is no legal framework for private foundations (the law currently provides for non-profit\/charitable foundations). A bill to introduce private foundations has been put for consultation in recent years.<\/p>\n<p>In addition, a bill to introduce lasting powers of attorney in Cyprus is being prepared and is expected to be put for consultation to the House of Representatives.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4479<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/123558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=123558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}