The House of Representatives of the Republic of Cyprus has taken a decisive step to enhance the competitiveness and attractiveness of Cyprus as an international fiduciary centre by approving on 22 December 2025 an amendment to the Cyprus International Trusts Law, specifically aimed at removing Article 12(2), which previously mandated the stamping of trust instruments. This legislative change signifies a milestone in Cyprus’s ongoing efforts to modernise its trust framework and align it with the needs of global clients and practitioners.
Since its introduction in 1992 and subsequent reforms—most notably in 2012—Cyprus has steadily developed its international trust regime into a sophisticated and flexible legal framework. The Cyprus International Trusts Law provides an attractive structure for wealth management, asset protection and succession planning for non-resident settlors, with key residency requirements, clear legal protections, and well-defined trustee responsibilities.
Under the law, a Cyprus International Trust (“CIT”) is typically established via a trust instrument, which until now was subject to a stamp duty requirement under Article 12(2). Historical commentary on the law indicated that formal stamp duty was payable on the trust creation instrument as a fixed amount, regardless of the value of the trust assets.
This legislative change reflects the Republic of Cyprus’s broader strategy to bolster its international financial services sector.
As global wealth planning trends continue to shift and evolve, Cyprus remains at the forefront of jurisdictions seeking to balance robust legal protections with practical and cost-effective trust administration solutions.
Author: Elli Ioannou
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