INHERITANCE TAX – CYPRUS
Preserve Wealth, Protect Generations.
Cyprus is one of the few European jurisdictions with no inheritance tax, estate duty, or gift tax, ensuring that wealth passes to heirs without tax erosion. Its legal system — based on English Common Law principles — offers a clear, structured process for estate planning and succession.
At a Glance
| Tax Type | Applicable in Cyprus | Rate | Status |
|---|---|---|---|
| Inheritance / Estate Duty | ❌ | — | Abolished since 1 January 2000 |
| Gift Tax | ❌ | — | None |
| Capital Gains on Inheritance | ❌ | — | Transfers on death are exempt |
| Stamp Duty on Wills / Probate | ✅ | Nominal (€5–€30) | Minimal administrative fee only |
All inheritances and gifts between individuals in Cyprus are tax-free — allowing families to transfer assets freely and securely.
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We structure wills, trusts, and company holdings to ensure smooth, tax-free wealth transfer.
1. Overview
Cyprus abolished inheritance tax (Estate Duty) on 1 January 2000, making it a zero-tax jurisdiction for transfers of assets upon death. This policy applies to both residents and non-residents, regardless of the asset’s location, provided it falls under the Cyprus legal system. As a result, Cyprus has become a preferred jurisdiction for international families and expatriates seeking transparent, tax-efficient succession planning.
2. Current Framework
| Asset Type | Tax Treatment on Inheritance |
|---|---|
| Immovable Property in Cyprus | No inheritance or transfer tax; only Land Registry formalities |
| Shares in Cyprus Companies | No tax; shares can be transmitted by probate or declaration |
| Bank Deposits / Cash | No inheritance tax; bank may require probate order |
| Overseas Assets | Not taxable in Cyprus under current regime |
| Gifts (During Lifetime) | No gift tax; may incur minor stamp duty on documentation only |
Legal Basis: The Estate Duty (Abolition) Law 74(I)/2000 repealed the previous inheritance tax system under the Estate Duty Laws of 1962–1999. Today, only probate fees and Land Registry formalities apply to estate transfers.
3. Probate and Estate Administration
All assets of a deceased person domiciled or owning property in Cyprus must pass through probate proceedings before distribution.
Probate Process
- Filing of the deceased’s Will or Letters of Administration in the Cyprus District Court.
- Payment of nominal probate stamp duty (€5–€30).
- Appointment of an executor or administrator.
- Distribution of assets according to the Will or intestacy law (if no Will exists).
Foreign Wills may be recognized in Cyprus if they meet formal validity under the Wills and Succession Law (Cap.195).
4. Forced Heirship Rules
Under Cyprus succession law, a portion of the estate (known as the statutory portion) must pass to close relatives, unless the deceased was domiciled outside Cyprus.
| Beneficiary | Minimum Statutory Share (of estate) |
|---|---|
| Surviving Spouse | ¼ to ½ depending on heirs |
| Children | Equal statutory rights with spouse |
| Parents (if no children) | Share statutory portion |
Discretionary Portion: The testator may freely dispose of the remaining part of their estate by Will.
Foreign Domicile Exception: Non-Cypriot-domiciled persons are exempt from Cyprus forced heirship provisions and may freely dispose of 100% of their estate under their own country’s succession laws.
5. Double Tax Treaties & Foreign Estates
Although Cyprus has no inheritance tax, assets may still be subject to foreign estate or inheritance taxes in other jurisdictions. Cyprus has signed several Double Tax Treaties (DTTs) that help prevent double taxation on estates or gifts, depending on the foreign country’s domestic rules. For expatriates with dual residence or assets abroad, estate planning ensures that wealth passes tax-free through Cyprus, even where foreign jurisdictions impose inheritance duties.
6. Transfers of Property After Death
Transfers of property through inheritance are exempt from:
- Capital Gains Tax
- Transfer Fees (subject to Land Registry process)
- Stamp Duty (except nominal documentation charges)
However, heirs must:
- Submit probate or succession documentation;
- Obtain Land Registry transfer certificate;
- Register the new ownership within the prescribed timeframe.
7. Estate Planning Instruments
To ensure smooth and dispute-free succession, Cyprus law recognizes:
- Wills and Testamentary Trusts (registered or unregistered)
- Joint ownership with survivorship rights
- Life insurance-linked inheritance structures
- Cyprus International Trusts (CITs) for asset protection and global wealth management
Cyprus International Trusts provide strong protection for international clients — assets settled in trust are immune from future inheritance or estate claims.
8. Why Clients Choose Our Firm
- Drafting and registration of Cyprus Wills and Codicils
- Cross-border succession planning and trust formation
- Probate representation and asset distribution
- Coordination with Tax Department and Land Registry
- Family office and multi-jurisdictional wealth structuring
We ensure that your legacy is preserved, your estate passes seamlessly, and your heirs receive every asset exactly as you intended.