In March 2011 three representatives submitted in the House of Representatives of Cyprus a bill for updating and making more attractive for international investors the International Trusts Law of the Cyprus Republic.The existing legislation has been one of the most important advantages of Cyprus in the field international tax planning and has made the island a favorable business and investment destination. However, the market for international trusts is highly competitive and includes countries/jurisdictions with 'soft' law (e.g. British Virgin Islands, Jersey), which makes it very challenging for a country which is member of the European Union and has to comply with EU legislative standards to follow.

The proposed bill does not aim to relax regulatory obligations, but to rather create a legislative framework, which allows for the creation of additional opportunities for investments through Cyprus and new innovative structures and trusts, which until now were not available. The Bill is expected to establish Cyprus Republic as the most attractive destination for international trusts worldwide.

This development is an additional indicator for the determination of Cyprus to maintain its attractiveness for foreign investments and to take all necessary actions to maintain the island high on the list of global investors.

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Charilaos Hadjiioannou, BSc, ACA