Cyprus Trusts, Wills & Estate Planning: A Practical Guide

If you own property in Cyprus, your arrangements are governed by Cypriot law regardless of where you are domiciled. Two statutes matter: Cap 189, which deals with the succession of immovable property, and Cap 195, which governs the administration of estates. Together they decide who inherits, who may act as executor, and how quickly an estate can be wound up. A will drafted in London does not automatically dispose of a flat in Limassol, which is why expatriates are usually advised to hold a Cyprus will alongside their home-country one.

Cypriot succession law includes a provision for forced heirship, which reserves a proportion of an estate for close relatives. British nationals are uniquely able to contract out of this provision, but only by making a valid Cyprus will. Without one, the statutory shares apply and the estate is distributed on terms the deceased did not choose.

A Cyprus will also lets a UK national with permanent residence in Cyprus record an intention to be buried in Cyprus. That clause is easy to overlook and can matter: only someone who intends to die in their country of domicile of choice can claim to be non-UK domiciled, and UK inheritance tax is charged at 40 per cent.

A trust separates legal ownership from benefit. A settlor transfers assets to a trustee, who holds them for named beneficiaries. A Cyprus Property Trust holds immovable property so that it does not have to pass through probate on death, avoiding the cost and delay that probate in Cyprus can involve.

A discretionary trust gives the trustee wider powers over how and when capital is distributed. It is an inexpensive and flexible way to hold assets for a spouse, children and future generations, and can be used for tax and estate planning during a settlor's lifetime. UK-domiciled settlers must register the trust with the UK authorities, and should not assume that placing assets in a Cyprus trust removes UK inheritance tax exposure in every case.

Where a death has already occurred, EWMT handles execution and administration of the estate, from obtaining the grant through to distributing assets to the beneficiaries. A power of attorney keeps personal finances and administration running if someone becomes incapacitated, and can include instructions about medical treatment.

On the property side, a conveyance service covers preparation or scrutiny of sale and purchase agreements, valuations, searches, transfer of the property and registration of title, and liaison with banks when a mortgage is being arranged. Checking that a property has full title and is unencumbered before contracts are signed is the single most important step in any Cyprus purchase.

EuroWealth Management & Trustees Ltd was established in 2008 in Limassol and is directed by principals with over 30 years of combined legal and financial experience. The firm works from Gala Court Chambers on Vassillis Vryonides Street, and every mandate is handled by the director responsible for it. If you would like advice on any of the points above, you can begin a conversation directly with the firm.