Given the strengthening of the rules on corporate tax avoidance, individuals must consider better estate protection strategies and undertake legitimate tax and tax avoidance planning. Family trusts are deeply embedded in estate planning, but the Cyprus holding company may also be utilised as a family investment company as an alternative to a family trust. The question of which one to opt for depends on individual family circumstances, objectives and investment strategies.
The outbreak of COVID-19 and continuation of social distancing measures have brought to light a variety of issues concerning the signing and execution of wills. Consequently, the legal world has had to resort to digital means in order to sign such documents. One of the key digital means is the use of electronic signatures instead of handwritten or wet-ink signatures.
While the COVID-19 pandemic has caused global economic turmoil, Cyprus is also facing challenges owing to the global interconnectedness of its economy. However, the government is working closely with the Cyprus Investment Promotion Agency to support the revival of the economy and has taken measures to protect the value of individual investments during this economic crisis.
The Cyprus International Trusts Law is one of the world's most attractive legal frameworks, as it builds on the well-established English principles of equity and trusts. Under this framework, Cyprus international trusts can be created in most complex situations and enjoy many advantages that cannot be found in aggregate in other trust jurisdictions.
Cyprus has a complicated system of forced heirship in which a portion of a deceased's estate must be effectively passed to surviving family members according to a set system of inheritance. This forced heirship regime means that even if a deceased writes a will leaving a certain portion of their estate as gift to their spouse, their wishes will be deemed invalid if there are natural children who are entitled to a fixed minimum percentage of the estate.