Inheritance in Cyprus: subtleties, tax aspects, and protection of heirs’ rights

Wills contestation cases

Cyprus inheritance law combines elements of English tradition and local regulations. However, despite the freedom of testamentary disposition, there are strict rules on “mandatory shares,” which often become a source of dispute. Almanova Law has had both successful will contestations and examples of will defense.

Case 1. Protection of the rights of minor children
The client is a widow with minor children. After her husband’s death, it turned out that all the property had been bequeathed to a third party, and the children’s rights were not mentioned in the will. The court, guided by Article 42 of the Wills and Succession Law (Cap. 195), recognized the children’s right to a forced heirship, despite the testator’s will. The dispute was resolved in favor of the children: they were allocated at least half of the inheritance.

Case 2. Contesting a will due to incapacity
The heirs claimed that the testator was suffering from dementia at the time of signing the will and was not aware of his actions. A forensic examination confirmed a decline in cognitive functions, and medical reports indicated that he was unable to dispose of his property independently. The will was declared invalid, and the inheritance proceeded according to the law (intestacy).

Case 3. Recognition of invalidity on procedural grounds
In one case, Almanova Law defended the interests of a client when the opposing party claimed that the will had been drawn up under pressure. However, it was possible to prove that the document had been drawn up in compliance with all formalities (signatures, witnesses) and that no pressure had been exerted. The court dismissed the claim to invalidate the will.

Conclusion:
Contesting wills in Cyprus is most often associated with a violation of the mandatory share, the incapacity of the testator, or procedural violations. Medical, notarial, and witness evidence, as well as the support of experienced lawyers, are necessary for success.

Overview of recent changes in the law

The Cyprus Wills and Succession Law (Cap. 195) has undergone a number of changes in recent years that have strengthened the protection of heirs and simplified the registration of inheritance rights.

Protection of the rights of foreign heirs
Recent clarifications from the Cyprus Ministry of Justice have confirmed that foreigners can inherit on an equal footing with Cypriot citizens, and disputes are resolved in accordance with EU principles (EU Succession Regulation 650/2012).

Simplification of the procedure for recognizing ownership rights
The 2023 reform allowed for the registration of ownership rights to movable and immovable property through a single application, simplifying the process for heirs and speeding up registration with the Land Registry Department.

Electronic tools
The possibility of electronic search for wills through the state register has been introduced. For notaries and lawyers, online requests for the status of a will are now possible, which minimizes the risk of duplicate documents and forgeries.

Restrictions on forced heirship
The law has retained the concept of forced heirship, according to which part of the property (up to 75%) cannot be fully bequeathed if the testator has children or a spouse. Only persons who have lived outside Cyprus for at least 5 years and have foreign citizenship can take advantage of complete freedom of testamentary disposition.

Exemption from inheritance tax
Since January 1, 2000, there has been no inheritance tax in Cyprus (Inland Revenue Department), which makes this jurisdiction attractive for the transfer of capital.

Step-by-step algorithm for heirs

1. Obtain an official death certificate
Contact the municipality or embassy (for foreign citizens) to obtain a death certificate.

2. Check for a will
Check with a notary or through the state register (cyprusbar.org – inheritance section). If there is no will, inheritance is governed by law.

3. File an application to open an inheritance case
Contact the district court at the place of the testator’s last residence. You will need: a death certificate, the testator’s passport, copies of the will, and your documents.

4. Appoint an executor/administrator
If appointed in the will, they assume their rights. If not, the court appoints an administrator based on the application of the heirs.

5. Obtain a Grant of Probate or Letters of Administration
This is a court decision that officially confirms the right to manage the estate. Without it, you cannot dispose of accounts, real estate, or securities.

6. Register the property
For real estate, register with the Land Registry Department. For bank accounts and movable property, notify the relevant institutions and provide a copy of the Grant of Probate.

If there are disputes, initiate negotiations or go to court. The rights of spouses and children to a mandatory share cannot be ignored.

8. Settle tax and administrative issues
Although there is no inheritance tax, you must pay state fees for processing documents (usually 0.5–1% of the value of the property) and settle the testator’s tax issues.

9. Obtain ownership of the property
After completing all procedures, the property becomes the property of the heirs, who can dispose of it at their discretion.

Expert advice from Almanova Law

• Conduct due diligence while you are still alive:
  Check the cleanliness of assets, the presence of debts, and discuss the drafting of a will with lawyers in advance, taking into account the mandatory share.
• Do not delay the registration of inheritance:
  The sooner the package of documents is submitted, the lower the risk of loss or “freezing” of assets.
• At the slightest sign of dispute or pressure, act through professional lawyers:
  Your defense is a high-quality evidence base and knowledge of the nuances of Cypriot law.
• Take advantage of the absence of inheritance tax to competently structure the transfer of assets between generations.

Almanova Law has extensive experience in protecting the rights of heirs, conducting negotiations, contesting wills, and handling complex inheritance cases in Cyprus. We will help you through every stage of the process, from opening the case to receiving the property and its subsequent disposal.

For more information and a free initial consultation, visit www.almanovalaw.cy