By Helen Daniilidou
06/10/2026
Cyprus charges no inheritance tax and no estate duty. Estate duty was abolished for every death on or after 1 January 2000. UK nationals who move to Cyprus stay inside UK inheritance tax at 40% on their worldwide estate for 3 to 10 years after leaving, if they were UK tax resident for at least 10 of the previous 20 tax years. Cyprus law also reserves up to three-quarters of an estate for a spouse and children. A British national keeps full freedom by choosing the law of their nationality in their will.
Does Cyprus have inheritance tax?
Cyprus has no inheritance tax. The Estate Duty (Amending) Law of 2000 abolished estate duty for all deaths on or after 1 January 2000, and nothing has replaced it.
The zero rate applies to every estate, whatever its size. It applies to Cypriot citizens, foreign residents and overseas owners of Cyprus property alike. A spouse, a child, a sibling or an unrelated beneficiary all inherit Cyprus assets free of inheritance tax.
Two costs remain for heirs. Probate in Cyprus carries court and legal fees. Heirs who later sell an inherited Cyprus property pay capital gains tax at 20% on the gain, after allowances.
Cyprus is one half of the picture for anyone with UK ties. The UK applies its own inheritance tax based on how long a person lived there.
Do UK nationals living in Cyprus pay UK inheritance tax?
UK nationals living in Cyprus pay UK inheritance tax on their worldwide estate while they count as long-term UK residents. Since 6 April 2025 the test is residence, and domicile has left the calculation.
A long-term UK resident is anyone who was UK tax resident for at least 10 of the previous 20 tax years. For a long-term resident, a home in Larnaca or Protaras sits in the UK inheritance tax net alongside UK assets.
The UK rate is 40% on the estate above the £325,000 nil-rate band. A further £175,000 residence nil-rate band applies when a home passes to children or grandchildren. Both bands are frozen until April 2031. Assets left to a spouse or civil partner are usually exempt.
UK assets stay in scope for life. A UK house, UK bank accounts and UK shares are subject to UK inheritance tax wherever their owner lives.
How long does UK inheritance tax apply after moving to Cyprus?
UK inheritance tax applies to a former long-term resident’s worldwide estate for 3 to 10 tax years after they leave the UK. HMRC calls this period the tail, and its length depends on years of UK residence.
| UK tax resident in the last 20 tax years | Worldwide estate stays in scope after leaving |
|---|---|
| Fewer than 10 years | 0 years |
| 10 to 13 years | 3 years |
| 14 years | 4 years |
| 15 years | 5 years |
| 16 years | 6 years |
| 17 years | 7 years |
| 18 years | 8 years |
| 19 years | 9 years |
| 20 years | 10 years |
A person who lived their whole working life in the UK carries the full 10-year tail. Once the tail ends, their Cyprus property and other non-UK assets leave the UK inheritance tax net. The test resets after 10 consecutive tax years of non-residence.
The tail starts with the first tax year of non-UK residence, so the date of the move matters. Our guide to Cyprus residency for UK nationals covers the residency routes and timelines.
Example: a UK retiree with an apartment in Larnaca
A single UK national who lived in the UK for 25 years moves to Larnaca in 2026 and dies in 2030. The estate is worth £600,000, including the Larnaca apartment.
- Cyprus inheritance tax: €0.
- UK inheritance tax: the death falls inside the 10-year tail, so the whole estate is in scope. (£600,000 minus £325,000) at 40% is £110,000.
- The same death after the tail ends, with every asset in Cyprus: £0 UK inheritance tax.
The figures use the nil-rate band alone and leave out the residence nil-rate band and other reliefs.
UK pensions join the estate from April 2027
From 6 April 2027, most unused UK pension funds and pension death benefits count as part of the estate for UK inheritance tax. A retiree in Cyprus who is still inside the tail has their UK pension pot added to the 40% calculation from that date.
Tax decides how much of the estate is charged. Succession law decides who receives it, and Cyprus has its own rules.
Who inherits under Cyprus law?
Cyprus law reserves a fixed share of every estate for close family. The Wills and Succession Law (Cap. 195) calls this share the statutory portion, and a will controls only the remainder.
| Surviving family | Reserved for family | Free to leave by will |
|---|---|---|
| A child or a descendant of a child | Three-quarters of the net estate | One quarter |
| A spouse or a parent, and no children | Half of the net estate | Half |
| None of the above | Nil | The whole estate |
The rule covers the worldwide movable estate of anyone domiciled in Cyprus. It also covers all land and buildings in Cyprus, whoever owns them and wherever they live.
British nationals were exempt until July 2015, when Law 96(I)/2015 repealed the exemption in section 42. A British owner of Cyprus property now falls under the statutory portion by default.
How do UK nationals keep control of who inherits their Cyprus property?
UK nationals keep full control by choosing the law of their nationality in their will. Article 22 of the EU Succession Regulation (650/2012) gives every person this choice, and Cyprus has applied the Regulation to deaths since 17 August 2015.
A British national names the UK legal system they are most closely connected to, in most cases the law of England and Wales. English law then governs the whole estate, including the Cyprus property, and the statutory portion falls away.
The choice has to be written expressly in the will. A will that stays silent leaves the estate under the law of the country of habitual residence, which for a retiree settled in Cyprus is Cyprus law.
The choice of law decides who inherits. It leaves the tax position as it is: Cyprus still charges nothing, and the UK still applies its residence test.
What happens to a Cyprus property when the owner dies?
A Cyprus property passes to the heirs through the District Court and the Land Registry. The heirs need the original will, if there is one, and the death certificate. A foreign death certificate needs an apostille and a translation.
- The executor applies to the District Court for a grant of probate. Where there is no will, the closest heir applies for letters of administration.
- The executor files an inventory of the estate with the court.
- The executor pays the debts, expenses and any taxes of the estate.
- The executor obtains the tax clearance certificate from the Cyprus Tax Department.
- The Land Registry transfers the title deed to the heirs on the strength of the grant.
A separate Cyprus will for the Cyprus assets shortens the process, because the estate goes straight to the Cyprus court. The common failure is a later UK will that revokes “all previous wills” and cancels the Cyprus will with it. Each will should state the country it covers.
Buyers at the start of the journey can estimate transfer fees, stamp duty and VAT with our Cyprus property purchase cost calculator.
Cyprus vs UK inheritance rules at a glance
Cyprus charges 0% and restricts who inherits. The UK charges 40% and leaves the choice of heirs open.
| Cyprus | United Kingdom | |
|---|---|---|
| Inheritance tax rate | 0%, since 1 January 2000 | 40% above the allowances |
| Tax-free allowance | The whole estate | £325,000 nil-rate band, plus £175,000 when a home passes to direct descendants, frozen until April 2031 |
| Who is in scope | Nobody | Long-term UK residents on worldwide assets, and everyone on UK assets |
| After leaving the country | No charge at any point | Worldwide estate stays in scope for 3 to 10 tax years |
| Freedom to choose heirs | Up to three-quarters reserved for spouse and children | Free choice under the law of England and Wales |
| Route to free choice | A will choosing the law of nationality under EU Regulation 650/2012 | Applies by default |
| Pensions | No inheritance tax | Unused pension funds join the estate from 6 April 2027 |
| Tax when heirs sell the property | 20% capital gains tax on the gain | Capital gains tax on any gain since the date of death |
What should UK nationals with Cyprus property do now?
UK nationals with Cyprus property need two numbers and two documents: their UK residence count, their tail end date, a Cyprus will and a UK will that work together. The steps below take an afternoon to start and a lawyer to finish.
- Count the tax years you were UK tax resident in the last 20.
- Find your tail length in the table above.
- Mark the tax year your worldwide estate leaves the UK inheritance tax net.
- Instruct a Cyprus lawyer to draft a will covering your Cyprus assets.
- State in that will that the law of your nationality governs your succession.
- Check that your UK will revokes earlier UK wills only.
- List the UK assets that stay in scope for life: UK property, UK accounts and, from April 2027, UK pension funds.
- Ask a UK tax adviser to review any trust you have set up or added to.
Residency status drives the timeline. Our pages on Cyprus permanent residency and using property to secure your retirement in Cyprus cover the next questions most buyers ask.
Frequently asked questions
Is there inheritance tax in Cyprus?
Cyprus has no inheritance tax. Estate duty was abolished for deaths on or after 1 January 2000, and the zero rate applies to residents and foreign owners alike. Heirs pay court and legal costs for probate.
Do UK expats living in Cyprus pay UK inheritance tax?
UK expats in Cyprus pay UK inheritance tax on their worldwide estate for 3 to 10 tax years after leaving, if they were UK tax resident for at least 10 of the previous 20 tax years. UK assets such as a UK home stay in scope for life. The rate is 40% above the £325,000 nil-rate band.
Do I need a Cyprus will if I already have a UK will?
A separate Cyprus will for Cyprus assets is the faster route. It goes directly to the Cyprus District Court and lets the Land Registry transfer the property on a local grant. The UK will should revoke earlier UK wills only, so the Cyprus will stays valid.
What happens to Cyprus property if the owner dies without a will?
Cyprus intestacy rules in the Wills and Succession Law (Cap. 195) decide the heirs. A surviving spouse and the children share the estate, with the spouse taking a share equal to each child’s. The closest heir applies to the District Court for letters of administration before the Land Registry transfers the title.
Can a British national leave a Cyprus property to anyone they choose?
A British national can leave a Cyprus property to anyone by stating in their will that the law of their nationality governs their succession. Article 22 of EU Regulation 650/2012 allows the choice. A will without that statement leaves up to three-quarters of the estate reserved for spouse and children.
Do heirs pay tax when they sell an inherited property in Cyprus?
Heirs who sell an inherited Cyprus property pay capital gains tax at 20% on the gain, after allowances. The inheritance itself is free of tax in Cyprus.
Buying property in Cyprus with Plus Wise Estates
Plus Wise Estates is a licensed real estate agency (Registration No. 209, Licence No. 216/E) with offices in Paralimni and Larnaca. We help UK buyers find and purchase homes across the Larnaca and Famagusta districts.
Browse properties for sale in Cyprus or contact our team to talk through your plans.
This article gives general information as of October 2026. Wills, succession and tax planning need advice from a qualified Cyprus lawyer and a UK tax adviser.
