Inheritance and Estate Planning for British Buyers in Cyprus
Owning Property in Cyprus
Purchasing a villa in Cyprus offers lifestyle, tax and investment advantages, but understanding the inheritance and succession rules is essential for peace of mind. Cyprus has no inheritance tax, yet British nationals and other expatriates may still be affected by their home country’s inheritance laws.
Inheritance Tax (IHT)
Cyprus abolished inheritance tax on all local assets in 2000.
UK residents or individuals classed as “UK-domiciled” may still face UK inheritance tax on their worldwide estate, even if they live in Cyprus.
As of April 2025, the UK applies inheritance tax to anyone resident in the UK for 10 of the previous 20 years.
Tip:
To minimise exposure, professional advice is recommended to review your domicile, residency status and estate structure.
Succession Law in Cyprus
Cyprus operates under forced heirship rules — meaning certain portions of your estate must go to your spouse, children or parents.
However, under EU Regulation 650/2012, anyone living in Cyprus can choose the law of their nationality to govern their estate.
Example:
A British national living in Cyprus can state in their will that English law applies. This allows full freedom to decide how their Cyprus assets are inherited, avoiding forced heirship.
Wills and Estate Planning
It is advisable to have a Cyprus will specifically covering assets located in Cyprus.
Clearly state the governing law (for example, English law) in your will.
Ensure your executor and lawyer are familiar with both UK and Cyprus procedures.
Review your will regularly, especially after property purchases or changes in residency.
Why It Matters
Having a clear inheritance plan ensures your Cyprus property passes according to your wishes, avoids complications for your heirs, and may reduce exposure to UK inheritance tax.
At Best Select we recommend all villa buyers obtain independent legal and tax advice to protect their legacy and enjoy full peace of mind.
Disclaimer
This page provides general information and should not be considered legal or tax advice. Buyers should consult a qualified lawyer or tax specialist in both Cyprus and the UK for personalised guidance.