Inheritance process in Cyprus. Key details and what is important to know

(This article will be structured as a question-and-answer session. The questions are answered by Elina Almanova).

— What are the laws governing inheritance in Cyprus?
— In Cyprus, inheritance processes are governed by two main laws:
• “On Wills and Succession” (The Wills and Succession Law, Cap. 195) and
• The Administration of Estates Law, Cap. 189.

In respect of immovable property, which includes houses and plots of land, the succession process is governed by Cyprus law without exception. Movable property belonging to Testators who have not resided permanently in Cyprus may be distributed according to the law of the Testator’s country of domicile.

— Is inheritance taxable in Cyprus?
— No, the Inheritance Tax Act 1962 was amended by Act 74 (I) of 2000 which repealed the taxes imposed on persons who died after January 1, 2000.

MAKING A WILL IN CYPRUS:
It is not required by law to register a will in the Cyprus court, but this is a big plus as the will will be kept in a special archive. In practice, one copy of the will is kept by the lawyer and the other by the testator.
In the absence of a will, the property will be divided between the legal heirs in accordance with the laws of Cyprus.
A will is prepared in Greek or English in three copies: one copy is registered in the local court archive of wills (registration takes place in the presence and with the signature of the Testator), one copy is kept in the office of the lawyer, and one copy is given to the Testator.
In case the Testator does not speak Greek or English, a Russian translation is prepared for him/her. The translation is for informational purposes only and has no legal effect in Cyprus.

IMPORTANT:
• The Will must be signed by the Testator in the presence of two witnesses
• Each page of the Will must be signed by the Testator and witnesses
• A Will may be revoked or amended by the Testator personally.

— Are there any restrictions when making a will?
— The main purpose of Cypriot law is to protect the family and the law restricts the freedom of the testator to transfer shares to third parties who are not legal heirs.
1. If the Testator has children (legal heirs) at the time of death, the share transferred to third parties must not exaggerate 1/4 of the total value of the inheritance.
2. In case the Testator has no children at the time of death, but has a spouse or parents, the Testator shall be free to dispose of only 1/2 share of his/her estate in Cyprus.
3. In the event that the Testator has no spouse or children at the time of death, the share of the estate that he/she is entitled to freely dispose of is 100%.

— How can these restrictions be circumvented?
— The most popular way is to register the property in a Cypriot legal entity and make a will, in which it is clearly stated to whom the shares will be transferred after death.

— What is the process of inheriting after the death of a person?
— After the death of the Testator, whether or not there was a will, the legal heirs need to apply to the Cyprus Court for the formal probate of the will (if one has been made) or for judicial authority to administer the estate. This request is made through local lawyers, as here is a specific set of documents and statements that must be prepared and submitted to the court.
The first and most important question is: Was there a will in Cyprus? If not, the process is a little more complicated as it involves more documentation. If there has been a will, you will need to find out who has been appointed as the Executor of the will and contact them to start the process.

THE DOCUMENTS AND PROCESS OF EXECUTING AN INHERITANCE:
Consent for the appointment of an executor – Administrator is required (the document is drawn up and signed in Greek. It can be signed at the Cyprus Consulate). The application is filed by the attorney at the probate records department of the District Court.
The administrator administers the estate in accordance with the law. His duties include paying the debts of the deceased person, collecting and distributing the estate to the heirs and reporting to the court on the work done.

Other documents required to start the process:
• Death Certificate (with certified translation)
• If the inheritance process has been completed in Russia, a Certificate of Right of Inheritance by Law is required, indicating the legal heirs (translation plus apostille).

In order for the executor to pass the property to the heirs, he must obtain a tax clearance certificate from the Inland Revenue Department. The same requirement applies to the relevant agencies. For example, the Department of Land Resources and the Department of Transportation, if they are related to the inherited property (apartment, car), must give their permission to transfer the deceased’s property to the heirs.

A separate title deed is required in order to transfer rights to real estate. is required:
• Contract for the purchase of real estate in Cyprus
• Owner’s title to the real estate.
• Marriage Certificate.
• Birth certificate of children (legal heirs).
• If there were active accounts in Cypriot banks, relevant statements or information is required.
• Proof of tax residency of the deceased person is also required

Lawyer’s advice: I highly recommend taking the time to book a consultation if you have any questions about making a will or inheritance in Cyprus. There are many details and nuances involved and I can tell you from personal experience that all cases have their own unique factors that affect the process. Unfortunately, some of our clients have approached us late in the process and although we have been able to resolve the issues at hand, the process could have been much easier if clients had approached us in advance.