Cyprus Inheritance Tax: The Rate Is Zero and Has Been Since 2000

Cyprus has no inheritance tax. The estate duty law was abolished on 21 July 2000 under Law 118(I)/2000, making Cyprus one of the few European countries with a zero rate on assets transferred on death.

When Inheritance Tax Was Abolished

The Cyprus parliament repealed the Estate Duty Law via Law 118(I)/2000, published in the Official Gazette on 21 July 2000. A subsequent amendment under Law 276(I)/2004 confirmed the abolition. Since that date, no inheritance tax has applied to any assets - whether property, cash, shares or other investments - transferred on death in Cyprus.

What About Gift Tax

Gift tax in Cyprus is generally nil for transfers to relatives up to the third degree. Third-degree relatives include parents, siblings, children, grandchildren, uncles, aunts and their children. For transfers to more distant relatives or non-relatives, standard immovable property transfer fees may apply if the asset being gifted is real estate.

Costs That Do Apply When Administering an Estate

While there is no inheritance tax in Cyprus, some costs arise when an estate is formally administered:

Immovable property transfer fees: When real estate located in Cyprus transfers from a deceased person to heirs, Land Registry transfer fees apply. These range from 3% to 8% depending on the market value of the property.

Probate court fees: Obtaining a Grant of Probate or Letters of Administration from the Cyprus Family Court involves administrative court fees. These are judicial costs, not a tax.

Stamp duty: Applies to certain documents used in the probate process, typically at low fixed rates.

Shares, bonds, bank deposits and other financial assets pass to heirs without any Cyprus tax charge. The Cyprus Capital Gains Tax applies only to immovable property located in Cyprus and does not apply to inheritances of securities or cash.

Why This Matters for Expats Relocating to Cyprus

For individuals who transfer tax residency to Cyprus, holding assets in Cyprus means those assets can be inherited tax-free. This contrasts with the UK (40% above the nil-rate band), Germany (up to 50% depending on relationship), Spain (up to 34% depending on region and relationship), and France (up to 45%).

Cyprus also has no wealth tax and no annual net worth tax on assets held by residents.

Source: Cylaw.org - Law 118(I)/2000 (Estate Duty Abolition). PwC Worldwide Tax Summaries - Cyprus: Other Taxes.