International Trusts In Cyprus

1. INTRODUCTION

A comprehensive definition of "trusts" under Cyprus law does not exist. However, the court, through case law, has deemed that a trust arrangement is a structure whereby the holder of a property (the "trustee") has an obligation to manage that property for the benefit of another (the "beneficiary").

The trust is created by transferring the legal ownership of the trust property from the previous owner (the "settlor") to the trustee, though the beneficial ownership over that asset belongs to the beneficiary. The terms upon which the trustee should manage the property are usually written and expressed in a trust deed.

The validity of the trust will depend on the existence of the following three certainties: