Parliamentary committee discusses unification of trust legislation

On Monday, September 28, 2026, the Parliamentary Committee on Finance in Cyprus deliberated on a proposed law aimed at unifying the legal framework governing both international and local non-international trusts. The proposal, introduced by Members of Parliament Fotini Tsiridou and Christiana Erotokritou, seeks to modernize the current system by applying the contemporary regulations of international trusts to domestic ones, replacing fragmented and outdated legislation.

During the session, the committee reached a consensus on the fundamental need for modernization. However, representatives from the Ministry of Finance and the Tax Department requested additional time to conduct a thorough review of the specific provisions within the proposal. The Tax Department specifically noted reservations regarding the sections concerning charitable foundations, which require further scrutiny before the bill can proceed.

The initiative addresses the existing disparities between the two trust categories, which are currently managed under different legal standards. By creating a singular, unified framework, proponents hope to streamline administration and clarify the regulatory environment. The committee is expected to continue its assessment of the proposal as relevant stakeholders finalize their reviews of the legislative text.