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06/09/2010 08:09:34
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Hungarian Desk

2. Cyprus Trust Law

2.1 General

Cyprus trust law is essentially based on the English system. Trusts are mainly regulated by the Trustee Law, Chapter 193, enacted in 1955 and based on the English 1925 Trustees Act. This is supplemented by the English doctrine of equity and English case law prior to 1960.

In 1992, Cyprus enacted the International Trusts Law. This was done to update and modernise the law and establish Cyprus as an offshore and financial centre and a serious trusts jurisdiction.

2.2 Perpetuity

Trusts may not exist indefinitely.

The general rule is that trusts may continue to exist for the lifetime of a life in being plus 21 years, or in the case that the life in being is not a natural person, merely for 21 years.

International trusts are exempt from this rule. They may exist for a period of 100 years from the date of their creation.

The perpetuity rules do not apply in the case of charitable or purpose trusts which may continue forever.




   
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