Quick Answer
Cyprus abolished inheritance tax in 2000. There is no estate duty, inheritance tax, or wealth tax on assets passed on death. This applies to both residents and non-residents with Cyprus-based assets. For context, Spain taxes inheritances up to 34%, France up to 45%, and Germany up to 50% - making Cyprus particularly attractive for estate planning.
Key Facts 2026
| Inheritance tax rate | 0% (abolished since 1 January 2000) |
| Estate duty | 0% |
| Gift tax | 0% |
| Wealth tax | 0% |
| UK comparison | 40% above GBP 325,000 threshold |
| German comparison | Up to 50% (class III heirs) |
| Spain comparison | Up to 34% (varies significantly by region) |
| Succession law | EU Regulation 650/2012 applies - can designate home country law |
Cyprus Inheritance Tax: 0% - No IHT
Cyprus abolished inheritance tax in 2000. Assets pass to heirs free of any inheritance or estate tax. This is one of the most significant advantages for expats from the UK, France, Spain, and Germany considering relocation to Cyprus.
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Quick Answer: No Inheritance Tax in Cyprus
Cyprus does not levy inheritance tax. Assets pass to heirs without any tax on the inheritance itself. The Estates Duty Law was repealed in 2000, and no equivalent tax has been introduced since. Whether the estate consists of cash, shares, foreign property, or business interests, there is no Cyprus estate or inheritance tax charge.
For context: the UK charges 40% on estates above GBP 325,000, France charges up to 45% for non-direct heirs, and Spain can charge up to 34%. Cyprus charges 0%.
Cyprus offers 0% inheritance tax, no capital gains tax on securities, and the Non-Dom regime for dividends. Professional advisors can help structure your assets efficiently before you relocate.
Countries with No Inheritance or Estate Tax
Cyprus is not alone in having abolished inheritance tax. Several countries have either never introduced an estate tax or abolished it in recent decades. The table below covers the most relevant jurisdictions for European expatriates, with comparison rates from high-tax countries for context.
| Country | Inheritance Tax | Notes |
|---|---|---|
| Cyprus (EU) | 0% | Abolished 2000. No gift tax or estate duty. |
| Portugal (EU) | 0% (direct heirs) | 10% stamp duty applies for non-direct heirs. |
| Sweden (EU) | 0% | Abolished 2004. |
| Austria (EU) | 0% | Abolished 2008. |
| Slovakia (EU) | 0% | Abolished 2004. |
| Latvia (EU) | 0% | No inheritance tax for direct heirs. |
| Norway (EEA) | 0% | Abolished 2014. |
| Singapore | 0% | Abolished 2008. |
| Australia | 0% | No federal inheritance or estate tax. |
| Canada | 0% | No inheritance tax; capital gains deemed on death. |
| UK | 40% | On estates above GBP 325,000. |
| Germany | 7-50% | Graduated by relationship and amount. |
| France | 5-45% | Graduated by relationship and amount. |
| Spain | 7-34% | Varies by autonomous community. |
Among EU options for expatriates, Cyprus is consistently rated the most accessible. The 0% rate applies unconditionally to all asset types - financial instruments, company shares, foreign property, and cash. There is no stamp duty on financial assets transferred on death, no gift tax equivalent, and no deemed disposal on departure from Cyprus. Portugal and Sweden also offer 0% rates but with more conditions or exclusions for non-direct heirs.
Frequently Asked Questions
Does Cyprus have inheritance tax?
Cyprus has no inheritance tax. The Estates Duty Law was repealed in 2000, eliminating all inheritance tax, estate duty, and death taxes. Assets pass to heirs without any tax charge on the inheritance itself.
If I move to Cyprus, does my home country still charge inheritance tax?
Your home country's inheritance tax liability depends on its domicile rules, not your Cyprus residence. The UK, for example, charges IHT based on domicile rather than where you live. Moving to Cyprus does not automatically change your UK domicile, so you may remain liable to UK IHT for many years unless you deliberately sever UK domicile. This is critical planning for UK nationals relocating to Cyprus.
Are Cyprus property transfers on death taxed?
There is no inheritance tax on property. However, transfer fees apply when Cyprus immovable property changes ownership on death. Transfers to a surviving spouse are fully exempt. Children receive a 50% reduction. Other beneficiaries pay the standard transfer fee rate of 3% to 8% based on assessed market value.
Does Cyprus have forced heirship rules?
Yes, Cyprus enforces forced heirship rules reserving a portion of the estate for close relatives (the legitim) under the Wills and Succession Law. However, expats can use EU Regulation 650/2012 to elect their home country's succession law and avoid Cyprus forced heirship entirely. Only individuals domiciled in Cyprus at death are subject to these provisions.
Can I use a Cyprus International Trust for estate planning?
Yes, Cyprus International Trusts (CITs) are effective for estate planning if you're non-Cyprus domiciled. Assets in a CIT bypass Cyprus succession laws and transfer to beneficiaries per the trust deed. Income and gains escape Cyprus taxation if neither settlor nor beneficiaries are Cyprus tax residents. This structure offers flexibility in asset distribution and can optimize inheritance outcomes for non-resident settlors.
What is the most tax-efficient way to hold assets in Cyprus?
Holding investment assets through a Cyprus company and drawing dividends under Non-Dom status typically provides the highest tax efficiency for expats. The company pays 15% corporate tax; dividends face just 2.65% GHS (capped EUR 4,770 annually). Shares pass to heirs with zero inheritance tax and zero capital gains tax, making Cyprus exceptionally estate-efficient within the EU. This structure combines low corporate rates, minimal dividend taxation, and complete succession tax elimination.
Do I need a Cyprus will if I already have a will in my home country?
Yes, a separate Cyprus will is strongly recommended if you own immovable property in Cyprus. Probating a foreign will for Cyprus assets requires a grant of probate in Cyprus, which is time-consuming and costly. A Cyprus will covering only Cyprus assets, combined with an EU Regulation 650/2012 election, streamlines the process significantly.
How does Cyprus compare to other EU countries with low inheritance tax?
Cyprus and Malta both have 0% inheritance tax, the most favourable in the EU. Portugal, Italy, and Luxembourg offer low rates with high thresholds. France, Germany, Spain, and Belgium impose the highest burdens. Cyprus stands apart by combining 0% IHT with Non-Dom status (circa 5% effective dividend tax), no capital gains tax on securities, and 15% corporate tax, a package unavailable in Malta or other EU states.
Which countries have no inheritance tax?
Which EU countries have no inheritance tax?
Sources and Further Reading
- Cyprus Tax Department - Immovable Property Transfer Fees (mof.gov.cy)
- EU Succession Regulation 650/2012 - European Commission
- PwC Worldwide Tax Summaries - Cyprus (pwc.com/taxsummaries)
- KPMG Tax Rates Online - Inheritance Tax comparison
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Tax laws change frequently. Always consult a qualified Cyprus tax professional for advice specific to your situation.