Probate and administration of estates in Cyprus

The loss of a close family member or relative is an emotionally stressful and sad experience. It brings practical matters and arrangements that must be handled.

Probate in Cyprus is the process and legal steps taken to administer the estate of a deceased person. Taxes and debts must be paid, and money, assets, and other property 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, and the Administration of Estates Law, Cap. 189. Estate duty was repealed for deaths on or after 1 January 2000 by Law 74(I)/2000, which amended the Estate Duty Law of 1962 (Law 67/1962), so no inheritance tax is charged on a Cyprus estate today.

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

Who inherits?

Cyprus has a "forced heirship" regime, so a person cannot always leave their property to whoever they wish. How much is reserved for family depends on who survives the deceased. With a spouse and children, or descendants of children, three quarters of the net estate is the statutory portion for them and one quarter is the disposable portion that can be left freely. With a spouse and a parent but no children, one half is the statutory portion and one half is disposable. With no spouse, child, descendant, or parent, the whole estate can be left freely by will.

Foreign nationals and forced heirship

A national of another country can, in some cases, choose the law of their nationality to govern their estate, including assets held in Cyprus. The choice has to be set out clearly in the will. Where it applies, the estate passes under the chosen national law instead of the Cyprus statutory portions. Whether the election works turns on nationality, domicile, the assets involved, and the wording of the will, so we review each case before advising.

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.

When is probate required in Cyprus

Probate, or letters of administration where there is no will, is needed before anyone can lawfully deal with the estate of a person who died owning assets in Cyprus. The court grant gives the executor or administrator authority to collect the assets and settle debts before the property passes to the heirs. Banks and the Land Registry ask for it before they release or re-register anything.

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 and handles the estate lawfully.

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.

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

The Inland Revenue then 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 with the complexity and nature of the estate and with factors such as whether all the beneficiaries are in Cyprus and whether the will is foreign or Cypriot. The minimum probate cost in Cyprus is currently €3,000.

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

Where a person who lived abroad dies owning assets in Cyprus, a grant of probate issued by a foreign court can be recognised here by resealing under the Probates (Re-Sealing) Law, Cap. 192. The Cyprus court reseals the foreign grant and appoints an administrator to deal with the Cyprus assets. This route is common for British and other overseas clients who hold property or a bank account on the island. We prepare the resealing application and run the Cyprus side of the estate.

How a Cyprus probate lawyer helps

Probate reaches the court, the Tax Department, banks, and the Land Registry. We act for executors, administrators, and heirs across the process: applying for the grant or letters of administration, resealing foreign grants, preparing the estate inventory and affidavits, obtaining tax clearance, and distributing the estate. We work with clients in Cyprus and abroad, in English and Russian.