Inheritance and probate in Cyprus: no inheritance tax, but a tax clearance.

Which country's law decides who inherits property in Cyprus?

The EU Succession Regulation applies to deaths from 17 August 2015. By default the whole estate follows the law of the country where the person lived (was habitually resident) at death. A will can instead choose the law of a country whose nationality the person holds (Article 22), which lets a British or American owner pick British or US law.

The Regulation applies whatever law it points to, EU or not (Article 20). For owners who live outside the EU, that country's own rules can refer the question back to an EU state's law (Article 34); a choice of law in the will avoids that. The Regulation does not change how the property is recorded in the Cyprus land register; local registration rules still apply.

Is my UK or US will valid in Cyprus?

A written will is formally valid under the EU Succession Regulation if it meets the law of the place where it was made, or of the testator's nationality, domicile or habitual residence (Article 27). A Cyprus-law will must be in writing, signed by the testator before two witnesses present at the same time.

The heirs still need certified, translated copies for the District Court and the Land Registry.

Is there forced heirship in Cyprus?

When Cyprus law applies, yes. With a child or a child's descendant, at most a quarter of the net estate can be left freely; with a spouse or parent but no descendants, at most half. With none of them, the whole estate is free (Wills and Succession Law, Cap.195 s.41).

Without a will, a spouse and children share the estate equally; with no descendants, the spouse takes half alongside parents or siblings. A British owner can avoid the Cyprus portions by choosing British law in the will, under the Regulation above.

Is there inheritance tax in Cyprus?

No. The Estate Duty Law was repealed by Law 74(I)/2000 for anyone who died on or after 1 January 2000, so no heir pays inheritance tax, resident or not.

A legal heir pays no Land Registry fee to have the title registered. A legatee who is not a legal heir, such as a friend left the property in a will, pays 3 per thousand (0.3%) of its 2013 valuation. When an heir later sells, capital gains tax is worked from the deceased's original cost, not the value at death.

The deceased's own unpaid taxes still come first out of the estate, which is why the tax clearance below exists. Taxes once you own: Cyprus property tax for foreigners.

How does a Cyprus inheritance work?

The District Court of the deceased's last home appoints an administrator, which is compulsory before anything is distributed. Within six months of death the administrator gives the Tax Commissioner a statement of the assets and debts, in Cyprus and abroad.

• No probate or letters of administration without the Tax Commissioner's certificate.
• No transfer at the Land Registry without the Commissioner's written authorisation, plus municipal and sewerage receipts.
• Then debts and taxes are paid, the estate is distributed and final accounts filed.

No official source gives a typical total length. Cyprus requires non-EU buyers to get Council of Ministers permission, but the law is worded for acquisitions other than on death; confirm the position for your heir with the Land Registry. The title they receive: the Cyprus title deed explained.

Header photo: Valantis Antoniades, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.