Probate and administration of estates – rules in Cyprus

The loss of a close member of the family or relative is an emotionally stressful and sad experience. However, it also involves practical issues, technicalities, and arrangements that need to be made.

Probate in Cyprus is the process and legal steps taken to administer the estate of a deceased person. Taxes and debts must be paid, while money, assets, and other property must be distributed.

The total of the deceased’s property, money, and possessions is referred to as their estate. It is everything owned by the person who has died.

Applicable Law

In Cyprus, succession and probate matters are dealt with by the Wills and Succession Law, Cap. 195, the Administration of Estates Law, Cap. 189, and the Probate and Estates (Inland Revenue) Law of 2000.

In cases of probate made abroad, yet the estate also contains property in Cyprus, there is the Probates (Re-Sealing) Law, Cap. 192, and the Rules made under this legislation.

Who inherits?

Cyprus has adopted a “forced heirship regime”. There is no complete freedom as to who a person will leave his or her property to. Compulsorily, three-fourths of the estate must go to the lawful heirs, such as spouse and children (“the statutory portion”). Only one-fourth can be disposed of freely (“the disposable portion”).

Features of a valid will

The person making the will is called the testator. The testator must be at least eighteen years old and of sound mind. There should be two witnesses, neither of whom can be the testator or a beneficiary (i.e., the heirs or individuals mentioned in the will).

The testator and the witnesses must sign the will at the end.

If the will has more than one page, the testator needs to initialise each page.

Probate: Will or No

Probate is more straightforward if the deceased leaves a valid will. Then, the deceased’s estate will be distributed according to his/her wishes.

If the deceased has left a Will, the process is called probate.

If the deceased has not left a valid Will, the process is called administration.

Administration of estates in Cyprus

Estate administration in Cyprus is a legal process that manages and distributes a deceased person's assets and liabilities in accordance with Cypriot law. The process can be based on the deceased's will or, in its absence, Cypriot intestacy rules.

An executor of the will or a court-appointed administrator oversees the procedure, ensuring the lawful and organised handling of the estate.

The procedure of probate and administration of estates

In Cyprus, probate and administration happen as follows.

Step One: Information and other arrangements

Upon the death of a person, the heirs or beneficiaries obtain a death and beneficiaries certificate from the Community Council President. Then, they nominate an executor who applies to the Court to be appointed (this person will be called an administrator if the deceased has left no will).

The heirs or beneficiaries will be required to pay a fee to initiate the process.

Moreover, the deceased’s paperwork should be reviewed and summarised into a set of financial documents.

Step Two: Apply for probate

The person nominated as executor or administrator must apply to the Court for probate; the rule is the same whether the deceased has left a Will or not.

Upon application, the Court will issue a probate certificate or, if the deceased has not left a Will, Letters of Administration.

The Certificate or Letters will enable the executor or administrator to manage the deceased's estate, gather all relevant information about the estate, and carry out the deceased’s wishes. The estate vests in the executor/ administrator from the time of the deceased’s death. For legal purposes, the executor/administrator acts in the place of the deceased.

Step Three: Notify the Inland Revenue

The executor or administrator will notify Inland Revenue that a probate/ administration procedure has started.

After opening a file, the Inland Revenue will ascertain if the deceased owed any tax. The executor/ administrator must pay any pending tax from the estate.

If the deceased was a tax resident of Cyprus, what must be done is to file (if these had not been filed by the deceased) Income Tax Declarations for at least 3 to 6 years until the date of death.

If the deceased was not a tax resident of Cyprus, the Inland Revenue will contact the tax authorities of the country where the deceased was a tax resident and obtain the so-called “certificate of fiscal residence”.

Step Four: Compile an Inventory

Another duty of the executor/administrator is to compile an official inventory of the deceased's estate. According to the Estate Inventory Workbook, this is “a list of the estate’s assets and liabilities”, including all assets from bank accounts to personal effects and all liabilities from credit cards to any other liability.

The inventory is filed 1) in Court with an affidavit and 2) with the Inland Revenue. The affidavit must state the inventory and be sworn and signed by the executor or administrator.

Step Five: The tax release or Tax Clearance Certificate

Subsequently, the Inland Revenue issues a Tax Clearance Certificate (TCC).

The TCC allows the executor/ administrator to access and dispose of the assets appropriately. The TCC specifies each property separately.

Step Six: Debts and estate distribution

The executor/ administrator will need to pay off any debts as a matter of priority. If there are insufficient funds, then assets from the estate will need to be sold.

The executor or administrator will deduct professional fees and funeral expenses from the estate.

Debts are not inherited under Cyprus law.

The remaining assets will be distributed among the beneficiaries.

Then, the beneficiaries will sign a declaration acknowledging that they have received the relevant assets and discharge the executor/administrator.

Step Seven: Final Accounts

Eventually, Final Accounts are taken to Court. The Final Accounts contain a detailed breakdown of all arrangements, along with copies of relevant documents, including invoices, receipts, and declarations from the beneficiaries.

Step Eight: Review and closure

The Court Registrar will review the documentation, and provided it is in order, he/she will close the probate/administration file.

Cost of probate

Costs and probate fees vary according to complexity, nature of the estate, and other factors, such as whether all the beneficiaries are located in Cyprus, whether the will is foreign or Cypriot, etc. The minimum probate cost in Cyprus is currently 3,000 euros.

How long does probate take in Cyprus?

The duration of probate in Cyprus depends on the complexity of the matters surrounding the estate. The grant of a probate order does not usually exceed 1-2 months.

Probate resealing

Resealing is the recognition of a foreign probate document by the Cyprus court. It concerns cases where a non-Cyprus resident has retained or acquired assets in Cyprus which form part of his/her estate at death.

Through this procedure, the documents are “re-sealed” in Cyprus, and the court appoints an administrator to distribute the assets.

Frequently asked questions