Inheritance and Succession Laws for Property Owners in Cyprus
Understand inheritance and succession laws in Cyprus, including wills, forced heirship, intestacy, and property rights for locals and foreign owners.
Inheritance and Succession Laws in Cyprus
Inheritance laws in Cyprus govern how property is passed on after death. They apply to both Cypriot citizens and foreign property owners, with certain differences depending on nationality and residence status.
Forced Heirship Rules
Cyprus follows a system of forced heirship, meaning that a portion of the estate is reserved for close relatives regardless of the deceased’s will. This system protects children, spouses, and parents from being disinherited.
Distribution of Property Under Forced Heirship
The portion of the estate that must go to heirs depends on the surviving family members:
• If the deceased leaves a spouse and children, 75% of the estate is reserved for them.
• If only a spouse or parents survive, 50% is reserved.
• If no close relatives exist, the entire estate may be disposed of freely.
Wills and Testamentary Freedom
Cyprus law allows individuals to create wills, but the freedom to distribute assets is limited by forced heirship. Foreign nationals who were domiciled outside Cyprus before 2015 may be exempt, giving them full testamentary freedom.
Intestacy Rules (Dying Without a Will)
If someone dies without a will, property is distributed according to intestacy rules. The estate passes to children, then parents, then siblings, and further relatives if necessary. If no heirs exist, the property reverts to the state.
Inheritance for Foreign Property Owners
Foreigners who own property in Cyprus are subject to inheritance laws. Since 2015, EU regulation allows foreign nationals to choose whether Cypriot law or their home country’s law applies to succession. This must be declared in the will.
Case Study: Dispute Over Forced Heirship
In 2011, a British resident in Paphos left his entire estate to his second wife, excluding his children from his first marriage. The children challenged the will under Cypriot forced heirship rules and successfully claimed their reserved share.
Case Study: Smooth Transfer With a Will
In 2019, a German retiree in Limassol prepared a will under German law, as permitted by EU succession rules. The will was upheld in Cyprus, ensuring that the property passed smoothly to his chosen heirs without dispute.
Checklist for Property Owners in Cyprus
1. Decide whether to apply Cypriot law or home country law in your will.
2. Draft a valid will with legal assistance.
3. Consider the impact of forced heirship on your estate.
4. Keep your will updated, especially after property acquisitions.
5. Register the will with Cypriot authorities if applicable.
FAQs on Inheritance Laws in Cyprus
Q: Can I leave my property to anyone I choose?
A: Only if no forced heirs exist, or if you qualify for testamentary freedom as a foreigner.
Q: Is there inheritance tax in Cyprus?
A: No, inheritance tax was abolished in 2000.
Q: Can a foreign will be enforced in Cyprus?
A: Yes, provided it complies with EU succession regulations.
Q: What happens if I die without a will?
A: Intestacy rules will apply, distributing property among close relatives.
Q: Do foreign heirs need Council of Ministers approval?
A: Yes, for non-EU heirs inheriting property, approval is required.
Final Recommendations
Succession planning is essential for all property owners in Cyprus. By preparing a valid will and understanding forced heirship, you can ensure that your property passes according to your wishes while avoiding disputes.