Setting Up a Trust in Cyprus and Living in Cyprus: A Guide to Company Registration and Tax Benefits

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Registration of a Cyprus Company Limited by Shares – Your Gateway to Business and Lifestyle Success

Imagine running your international business from the sunny Mediterranean, with minimal tax burden and access to a thriving EU-based network. Picture yourself living in Cyprus, savouring its rich culture, welcoming community, and high quality of life. Now imagine setting up a trust in Cyprus to safeguard your assets while enjoying tax efficiencies. All of this starts with the Registration of a Cyprus Company Limited by Shares – a smart, streamlined process that opens doors professionally and personally.

Cyprus isn’t just a holiday destination – it’s a serious business hub. With a corporate tax rate of just 12.5%, it sits among the lowest in the EU. Couple that with a network of over 60 double-tax treaties, and you’ve got an environment that’s engineered to eliminate cross-border tax headaches. Add the ability to incorporate both corporate entities and trusts within a modern legal system born of UK company law, and it’s no wonder more and more global professionals are electing to set up a trust in Cyprus, register companies here, and make Cyprus their new home.

I’ll walk you through the full journey – from the initial decision through registration, to living the Cypriot lifestyle. Whether your goal is to grow a global business, preserve your family wealth, or enjoy life by the Mediterranean, this guide has you covered.

When you take the step of setting up a trust in Cyprus, pursue the Registration of a Cyprus Company Limited by Shares, and embrace living in Cyprus, you’re crafting a synergy of financial advantage, stability, and lifestyle that few other European jurisdictions can match.

Why Cyprus is Perfect for Companies, Trusts, and Living

Youve got to use technology to your advantage
 

Seven Core Advantages of Cyprus

Cyprus offers a compelling mix of benefits – both personal and corporate – that elevate its appeal above many alternatives.

  1. 12.5% Corporate Tax Rate
    One of the lowest in the EU, this flat rate applies across sectors – from tech start-ups to holding companies – which gives your Registration of a Cyprus Company Limited by Shares a natural advantage.

  2. Non-Dom Regime (Non-Domicile)
    If you’re living in Cyprus but weren’t born there, you can enjoy tax-free dividends, rental income, and interest for up to 17 years, under the Non-Dom regime – a major incentive.

  3. Double-Tax Treaty Network
    With more than 60 agreements in place, Cyprus helps ensure you won’t be taxed twice on the same income – great for setting up a trust in Cyprus with assets or beneficiaries overseas.

  4. Business-Friendly Economy
    Cyprus boasts a dynamic, free-market economy supported by legal frameworks, English-speaking professionals, and strong EU integration.

  5. Legal System Based on UK Law
    Our company and trust law draws heavily on the UK model, providing predictability and familiarity – especially comforting if you’re setting up a trust in Cyprus.

  6. Low Share-Capital Requirements
    You can incorporate a Private Company Limited by Shares with as little as €1,000 authorised capital – flexible and cost-effective for your Registration of a Cyprus Company.

  7. Fast Incorporation Time
    Most companies can be up and running in just 8–10 working days – business-ready in next to no time.

Trust + Company + Residence – A Powerful Trio

Let me paint a clearer picture:

  • Setting up a trust in Cyprus lets you place assets – like company shares, property, or investments – under fiduciary management. That’s great for succession planning or asset protection.

  • Registering a company in Cyprus provides a low-tax structure for trading, service provision, or holding assets worldwide.

  • Living in Cyprus under the Non-Dom regime means higher living standards, lower passive income tax, and an improved sense of belonging.

It’s a holistic approach: trust for control, company for operations, residence for lifestyle.

Trusts in Cyprus – Protection Meets Tax Advantage

setting up a trust in Cyprus

Why Set Up a Trust in Cyprus?

Cyprus offers a favourable legal framework for trusts, which is especially beneficial for non-residents. The International Trusts Law provides flexibility and privacy, while the jurisdiction’s modern banking and legal infrastructure supports asset protection, succession planning, and estate management.

  • Confidentiality: Cyprus trusts are not publicly registered, ensuring discretion.

  • Asset Protection: Assets placed in trust are protected from future creditors.

  • Tax Efficiency: Properly structured trusts enjoy tax advantages, especially under the Non-Dom regime.

  • Succession Planning: Clear distribution of assets to beneficiaries.

  • Cross-border Flexibility: Recognised in many jurisdictions under the Hague Trust Convention.

How to Establish a Cyprus Trust

You will need a Cyprus-based trustee and a professionally drafted Trust Deed. Most trusts are discretionary, allowing the trustee to distribute assets based on the settlor’s wishes.

  • Appoint a trustee and protector if needed.

  • Identify beneficiaries and specify terms.

  • Transfer initial assets into the trust.

  • Maintain annual accounts and comply with legal requirements.

A solicitor experienced in Cyprus trust law will help navigate the setup smoothly.

Living in Cyprus – Lifestyle and Tax Benefits

setting up a trust in Cyprus

Why Move to Cyprus?

Cyprus is a wonderful place to live – safe, sunny, and surprisingly affordable. Beyond the weather, culture, and food, the financial incentives make living in Cyprus especially appealing to UK residents.

  • Over 300 days of sunshine each year.

  • High-quality healthcare system.

  • English widely spoken and used in official contexts.

  • International schools and universities.

  • Lower cost of living than most of Western Europe.

Residency and the Non-Dom Regime

Cyprus offers several routes to residency. The most popular are:

  • Temporary Residence Permit (Pink Slip): Ideal for long stays, freelancers, and remote workers.

  • Permanent Residence (Category F): For retirees or those with a stable income.

  • Investment-Based Residency: Requires property purchase or business investment.

Once you’re resident, apply for Non-Dom status and enjoy 17 years of tax-free passive income. Perfect if you have income from dividends, rent, or interest from your Cyprus company or trust.

Wrap up: Make Cyprus Your Strategic Base

Cyprus delivers a unique blend of business opportunity and personal comfort. Whether you’re setting up a trust in Cyprus, completing the Registration of a Cyprus Company Limited by Shares, or relocating for a better lifestyle, the island offers a warm welcome, strong legal frameworks, and unbeatable tax advantages.

Take the step today. Partner with local professionals, get your structure right, and enjoy all the benefits that come with living in Cyprus.

FAQs

1. What are the tax benefits of living in Cyprus as a Non-Dom?
You can receive dividends, interest, and rental income tax-free for 17 years, with no inheritance tax or wealth tax.

2. Can I set up a company and trust in Cyprus at the same time?
Yes, many clients do. It offers control and flexibility, particularly for international estate planning.

3. How long does company registration in Cyprus take?
Typically 8 to 10 working days once all documents are ready.

4. What documents do I need to live in Cyprus?
You’ll need proof of income, local accommodation, health insurance, and identification documents. Requirements vary by residency route.

5. Are Cyprus trusts recognised in the UK?
Yes, under international law and the Hague Convention, though UK tax laws will still apply to UK-domiciled individuals.