Is there inheritance tax on Cyprus property?

No — estate duty was abolished in 2000, and death transfers also fall outside capital gains tax. The planning issues are succession rules, not taxes.

Will my home-country will cover my Cyprus apartment?

It can, but expect slower probate and possible collision with Cyprus forced-heirship defaults. A coordinated Cyprus will with the correct applicable-law election is the clean solution.

Can I leave my property to whoever I choose?

By default, Cyprus reserves statutory portions for spouse and children. Many foreign nationals can elect their national law under EU Regulation 650/2012 to restore testamentary freedom — the election must be expressly drafted.

Does owning through a company change inheritance?

Yes — heirs inherit shares rather than property, which can simplify multi-jurisdiction estates and future transfers. Whether it suits you depends on the full picture; see our company-ownership guide.

Wills and Inheritance for Cyprus Property Owners: Zero Tax, Real Rules

Cyprus abolished inheritance tax — passing your Limassol apartment to family costs nothing in estate tax. What remains are rules: forced-heirship defaults that override foreign wills, an EU regulation that lets many owners opt out, and a probate process that runs far smoother with a Cyprus will in place.

inheritance tax in Cyprus

Forced heirship

default rules limit your will

EU 650/2012

lets you elect your national law

01The good news first: no estate taxes

Estate duty was abolished in Cyprus in 2000. Property passing on death attracts no inheritance tax, and transfers by reason of death sit outside capital gains tax too. For families holding Limassol property across generations, Cyprus is structurally one of Europe's most benign jurisdictions — the planning work is legal, not fiscal.

02Forced heirship: the default you may not expect

Cyprus succession law reserves a statutory portion of an estate for close family — spouse and children — regardless of what a will says. A will leaving everything to one child, a partner, or a trust can be partially overridden by these defaults.

The rule catches owners from common-law countries by surprise: testamentary freedom is not the default here — it is something you elect.

03The EU regulation escape hatch

Under EU Succession Regulation 650/2012, which Cyprus applies, a person can choose the law of their nationality to govern their entire succession — stated expressly in the will. A British, Israeli or other foreign national owning Cyprus property can thereby have their national law's freedoms apply instead of Cyprus forced heirship. The election must be drafted correctly; it is a sentence that changes everything and is routinely missing from home-country wills.

04Practical setup for a foreign owner

The clean structure: a Cyprus will covering Cyprus assets (drafted with the applicable-law election where wanted), coordinated with your home-country will so neither revokes the other. On death, Cyprus probate handles local title transfer — dramatically faster with a local will than resealing foreign grants. Owners buying through a company change the object of succession from property to shares, which is one of the estate-planning arguments covered in our company-ownership guide; tax.com.cy structures both routes.