Making a will in Cyprus is a key step for the protection of heirs’ rights and the efficient administration of estates, especially for foreign nationals who own assets in Cyprus. The Cypriot legal system offers a number of unique advantages, including the absence of inheritance tax, flexibility in the disposal of property for non-residents and simplified procedures for the registration and execution of a will. Let’s take a closer look at the process, including all the key aspects and legal nuances, to show why probate in Cyprus is an important tool for inheritance planning.

1. Wills and inheritance law in Cyprus

The law of succession in Cyprus is based on English common law, supplemented by local laws. A will in Cyprus is the main instrument for the disposal of property after the death of the testator and is governed by special rules that ensure its execution in strict compliance with the law.

Basic provisions of Cypriot inheritance law:

• A will allows the testator to dispose of his property, including real estate, money, business and other assets.
• The law grants the testator the right to appoint one or more executors of the will, who will be responsible for the distribution of the estate in accordance with the testator’s last will.
• An important aspect of Cypriot law is the mandatory observance of the principle of “compulsory share” for residents, which regulates the distribution of part of the estate in favor of close relatives.

A will must be made and signed in writing, in the presence of two witnesses who are not interested parties. If the will meets these criteria, it is considered legally valid.

2. Advantages of probate in Cyprus for non-residents

Cyprus has a special inheritance regime for foreign nationals, which gives non-residents more freedom to dispose of their assets. One of the key factors is that foreign nationals are not subject to the compulsory share rules applicable to Cypriot residents. This allows non-residents to distribute their assets by will in full.

In addition, making a will in Cyprus has several additional advantages:

• Absence of inheritance tax. There is a complete absence of inheritance tax in Cyprus, which is one of the most attractive aspects for wealthy individuals and foreign investors who own property on the island. In other jurisdictions inheritance tax can reach 40% of the value of the property, while in Cyprus heirs receive assets without additional tax liabilities.
• Right to choose the jurisdiction. Non-residents can specify in their will that it should be governed by the laws of their country of citizenship rather than Cyprus law. This is particularly important for those who wish to use their national legal rules to distribute assets located in Cyprus.
• Ease of execution. A will can be made with minimal legal complexities, and having multiple wills (for Cypriot assets and for assets in other countries) can simplify the legal procedures for inheritance in different jurisdictions.

3. The process of registering a will in Cyprus

Although it is not compulsory to register a will in Cyprus, it is advisable to go through this procedure in order to ensure its subsequent execution. The registration of a will is done at the Cyprus Probate Registry (Probate Registry). This step not only simplifies the procedure of executing a will after the death of the testator, but also provides additional protection against possible disputes among the heirs.

The probate process includes the following steps:

• A will is drafted, signed by the testator and witnesses.
• The will is submitted to Probate Registry for registration.
• After the death of the testator, the registered will is submitted to the court for probate proceedings, which confirms its validity and the distribution of assets in accordance with the testator’s will.

A registered will becomes unavailable for public viewing until the death of the testator, ensuring its confidentiality.

4. Probate and the Execution of a Will

After the death of the testator, the will must go through Probate, which is the formal probate of the will by the court and the appointment of an executor of the will to administer and distribute the assets. Probate involves the following key steps:

1. Submission of the will to the court. The will must be presented in court to confirm its authenticity and legality. This process includes checking that it meets all legal requirements.
2. Appointing an executor of the will. The executor named in the will is responsible for collecting assets, paying debts and distributing property to heirs in accordance with the testator’s will. If an executor was not named in the will, the court may appoint an independent administrator.
3. Payment of debts. The executor must make sure that all of the testator’s debts are paid before assets are distributed to heirs. This may include paying debts to creditors, paying bills, and paying off mortgages.
4. Asset Distribution. After all debts are paid, the testator’s assets are distributed according to the terms of the will.

The probate process can take anywhere from a few months to several years depending on the complexity of the case, whether there are disputes among the heirs, and whether there are debts.

5. Compulsory share and restrictions for Cypriot residents

The principle of compulsory share applies to Cypriot residents, which limits the freedom of the testator to dispose of his estate. This rule applies if the testator has close relatives who are entitled by law to a certain portion of the inheritance.

Example of distribution of the compulsory share:

• If the testator has children, 75% of the estate must be distributed between the spouse and children. Only the remaining 25% can be distributed as the testator sees fit.
• If the testator has no children but has a spouse or parents, the mandatory share is 50%, which limits the testator’s discretion.

This principle does not apply to foreigners, which gives non-residents considerable flexibility in inheritance planning and avoids forced distribution of assets to heirs.

6. Peculiarities of probate for real estate owners

Owning real estate in Cyprus is one of the main grounds for probate in the territory of the island, especially for non-residents. Real estate in Cyprus remains a highly liquid asset, and the proper execution of a will allows you to minimize the risks of legal disputes among heirs.

A will relating to real estate should take into account the following points:

• The existence of mortgages or other debts associated with the property.
• Precise details about the location and legal status of the real estate (ownership by lease or ownership).
• Inclusion of provisions for the sale, transfer or lease of the real estate after the testator’s death.

7. Statistics and dynamics of probate in Cyprus

Cyprus continues to be one of the most popular jurisdictions for making wills among foreigners, especially those who own real estate and assets on the island. According to the Cyprus Registry Office, the number of wills made by foreigners has increased by 25% over the last 10 years. This is due to the increase in foreign investment in real estate and favorable tax conditions.

According to the Ministry of Finance of Cyprus, more than 2,000 wills were registered in 2022 alone, of which about 30% were made by foreigners. This trend is expected to continue to grow as foreign investors continue to acquire assets in Cyprus and take advantage of the island’s favorable legal and tax environment.

Conclusion

Making a will in Cyprus offers significant advantages for both residents and non-residents. The absence of inheritance tax, flexibility in the disposal of assets and the simplicity of the procedure make Cyprus one of the best jurisdictions for inheritance planning. Proper probate will avoid disputes among heirs, protect assets and ensure that assets are distributed in accordance with the will of the testator. Almanova Law specialists will assist you at all stages of probate, ensuring that your will is legally valid and your interests are protected.