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FinMin informs Cyprus banks new EU sanctions also freeze trusts owned by Russians

The Finance Ministry has already informed banks in Cyprus that the new EU sanctions against Russia put a freeze also on trusts owned by Russians or linked to Russia.

This is what Philenews reported on Thursday, adding that the new sanctions came into force on Saturday with their publication in the Official Journal of the EU.

And that analysts believe this deals another blow to Cyprus’ services sector since the establishment of trusts is an important component of the services it provides to foreign investors.

Cypriot trusts are particularly popular because they provide non-residents with full tax exemption, as no income, capital gains and property taxes are paid.

The EU 27 decision provides that the registration, provision of registered office, business or administrative address as well as management services, to trusts or any similar legal formations having as trustees or beneficiaries, is prohibited to all Russian nationals or natural persons residing in Russia.

As well to legal persons, entities or bodies having their seat in Russia.

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