Inheritance of property in Cyprus is governed by laws on succession and wills, which protect the rights of close relatives while granting certain freedoms to testators. Cypriot legislation provides clear rules to assist both residents and foreigners in transferring property to their heirs, safeguarding family interests.
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Freedom to Dispose of Property
In Cyprus, there is the possibility to freely dispose of property through a will, but with certain limitations. If the deceased is survived by a spouse or children, the testator can only freely distribute part of the estate. The remainder, known as the “statutory portion,” is automatically allocated to the closest relatives.
If the deceased has a spouse and children, the testator may only freely dispose of 25% of the estate. If the deceased is survived by a spouse and parents but no children, half of the estate can be freely disposed of. If there are no surviving spouses, children, or parents, the entire estate can be distributed according to the testator’s wishes.
Intestate Succession
If a person dies without leaving a will, the estate is distributed according to the inheritance law. In this case, the largest share goes to the closest relatives, such as the spouse and children. If there are no children, the estate passes to the parents and more distant relatives. It is important to note that the spouse always has a priority right to a significant portion of the estate.
No Inheritance Tax
One of the key advantages of inheriting property in Cyprus is the absence of inheritance tax. This tax was abolished in 2000, making the process of transferring property more favorable for both residents and foreigners. This benefit attracts many investors who wish to pass on their property to heirs without additional tax burdens.
Inheritance Process
The process of transferring inheritance in Cyprus includes registering the new owner’s property rights with the Land Registry. This mandatory procedure requires the submission of all necessary documents, such as the will (if any) and the death certificate. After all documents are verified, the property rights are transferred to the heirs.
It is important to note that in the absence of a will, the inheritance process can be delayed due to the need for additional legal procedures. To avoid complications, especially for non-residents, it is recommended to draft a will in advance and clearly specify the heirs.
The Importance of a Will
Drafting a will in Cyprus is an important step to protect one’s assets and ensure that the property is transferred according to the testator’s wishes. In a will, one can clearly specify to whom and in what shares the property should be transferred. This also helps prevent disputes among heirs and facilitates the asset transfer process.
A will must be drafted in accordance with Cypriot law and signed in the presence of two witnesses. This ensures its legal validity and reduces the risk of it being contested in court.
Inheritance of property in Cyprus is a process that requires attention to detail and compliance with the law. The absence of inheritance tax, the ability to draft a will, and clear rules for transferring property make Cyprus an attractive jurisdiction for property ownership. However, to avoid legal complications, especially for foreigners, it is important to prepare wills in a timely manner and seek advice from professionals.
