Is there inheritance tax in Cyprus?
No, there is no inheritance tax, succession duties, or gift tax in Cyprus. The Estate Duty (Abolition) Law 118(I)/2000 abolished them all with effect from 1 January 2000. This applies to real estate in Cyprus, shares in Cypriot companies, bank deposits and investments, corporate interests and IP, and foreign assets of a Cypriot tax resident.
This places Cyprus among a small group of EU countries without a survivorship tax. By comparison, France levies up to 60% on non-relatives, Greece up to 40%, and Spain up to approximately 34% depending on the region.
So this part is simple. The complexity lies elsewhere.
The real question: is your homeland letting you go?
- For the Dutch: only after ten years.
- For Belgians: much faster. This difference is significant and determines whether your move yields any tax benefits for your heirs.
(See the first responsive table at the bottom: “Does your home country continue to levy taxes?”)
The Netherlands: the ten-year rule. Article 3, paragraph 1 of the Inheritance Tax Act stipulates that a Dutch national who dies or makes a gift within ten years of leaving the Netherlands is deemed to reside in the Netherlands. Consequence: full Dutch inheritance or gift tax on worldwide assets, even if you have lived in Cyprus for years and are a tax resident there. Three points that are often overlooked:
- The regulation also applies to gifts, not only to death. Transferring assets during your lifetime is therefore not an escape within those ten years.
- You must have Dutch nationality at both the time of emigration and the time of death or gifting. Anyone who loses Dutch nationality falls outside the scheme. That is a severe measure, but it is the only hard way out before year ten.
- If you move back to the Netherlands, the clock starts again with your next departure.
Moreover, there is no Dutch succession treaty with Cyprus. The Netherlands has concluded only a handful of inheritance tax treaties, and Cyprus is not among them. While you can offset foreign taxation under the Double Taxation Prevention Decree, since Cyprus levies no tax, there is nothing to offset.
Belgium: no ten-year rule. If you are no longer a resident at the time of death, Belgium only levies the transfer tax on real estate located in Belgium. Your other assets fall outside the Belgian taxation. However, a condition is that you have actually changed your tax residence; Belgium looks at the factual situation, not at your deregistration. For Belgians, therefore, emigrating to Cyprus yields results on this point much faster than for the Dutch.
| Homeland | Claim after departure | What it means |
|---|---|---|
| The Netherlands | 10 years | Ten-Year Rule (Art. 3 SW): full Dutch inheritance and gift tax on worldwide assets, as long as you have Dutch nationality |
| Belgium | Immediately upon loss of national residency | Single transfer tax on immovable property situated in Belgium. Other assets fall outside the Belgian taxation |
| Germany | 5 years (extended obligation) | German citizens remain liable for tax indefinitely for a period after leaving; have this assessed on a case-by-case basis |
| United Kingdom | 3 to 10 years | A residency test since April 2025; the length of the tail depends on how long you were a UK resident. UK assets always remain taxed |
Forced succession: the trap no one sees coming
Cyprus reserves a large portion of your estate for your spouse and children, regardless of what your will states. The Wills and Succession Law (Cap. 195) imposes a statutory reserved share that can amount to up to 75% of the estate. If you have children, you can therefore freely dispose of a minority of your assets.
If you live in Cyprus without a will, or with only a foreign will that does not cover the Cypriot situation, Cypriot inheritance law applies as the standard. That is precisely what many expats encounter during the settlement process.
The solution: the Article 22 option
Explicitly choose the law of your nationality in your will. That is the standard route, and it is inexpensive. The European Succession Regulation (EU 650/2012, also known as Brussels IV) applies in Cyprus and throughout almost the entire EU to the estates of persons who die on or after 17 August 2015. Article 22 allows you to explicitly designate the law of your nationality as the law governing your estate.
If you do not make that choice explicit, the law of your habitual residence applies automatically, i.e. Cypriot law including compulsory succession. A Dutch or Belgian national who chooses Dutch or Belgian law respectively thereby escapes Chapter 195 and regains their freedom to make a will, within the limits of the chosen law.
One nuance you should be aware of: there is legal debate regarding the scope of the choice of law concerning real estate located in Cyprus. Some Cypriot law firms argue that Cypriot law applies to land in Cyprus regardless. For properties on the island, always have this reviewed by a Cypriot lawyer and have them draft the choice of law.
What does your estate look like?
We map out your position: your home country claim, the timing of your emigration, your will, and your structure. So that the 0% from Cyprus actually ends up with your heirs.
→ Book a free introductory meeting
So what do you actually pay in Cyprus?
No tax, but costs and a latent claim.
| Post | Amount | Explanation |
|---|---|---|
| Inheritance tax | 0% | Abolished as of January 1, 2000 |
| Gift tax | 0% | Does not exist in Cyprus |
| CBT regarding inheritance itself | 0% | Transfer upon death is exempt |
| Land registry fees for real estate | variable | Parent to child 0%. The 50% discount on sale does not apply to inheritance |
| Latent CBT for heirs | 20% | In the event of a later sale, on the increase in value from your original purchase |
| Settlement (probate) | lawyer fees | Administration of Estates Law (Cap. 189) |
Upon the transfer of real estate to heirs, registration and transfer fees at the Land Registry are payable; the 50% discount applicable to commercial sales does not apply to inheritance. Transfer from parent to child is 0%.
More important is the latent capital gains tax. Transfer upon death is not itself subject to CGT, but your heirs take over your original, indexed purchase price. If they sell the property later, the full increase in value from your purchase date is taxed at 20%. More about capital gains tax.
Also note the threshold for real estate-rich companies: since 2026, the sale of shares in a company of which at least 20% of the value consists of Cypriot real estate falls under the 20% CGT. This affects heirs who wish to cash in the inherited shares.
Structures: what works and when
A Cyprus Ltd is the practical route for most entrepreneurs. Holding assets through a company simplifies transfer: heirs inherit shares instead of individual assets, there is no transfer tax on share transfers, and the holding company pays 15% corporate tax, whereas as a non-director you pay 0% on dividends.
A Cyprus International Trust is possible, but timing is crucial. Under the Cyprus International Trusts Law, the founder and beneficiaries must not have been Cypriot tax residents in the year preceding the trust's incorporation. In practice, this means setting up such a trust before you move, not afterwards. If you are already a tax resident, that route is generally closed, and you should look for alternatives. Always have this legally reviewed, as the conditions are technical and the consequences of an incorrectly structured trust are costly.
Inheritance tax in Europe compared
| Land | Rate | Note |
|---|---|---|
| Cyprus | 0% | Completely abolished in 2000, including gift tax |
| The Netherlands | 10–40% | 10–20% in the direct line, up to 40% for third parties. Limited exemptions |
| Belgium | 3–55% | Low in the direct line, substantial for third parties. Varies by region |
| Germany | 7–50% | Exemption up to €400,000 per child, per ten years |
| France | up to 60% | Highest rate for non-relatives |
| United Kingdom | 40% | Above the nil-rate band; a residency test since 2025 |
By way of comparison with home: on an inheritance of €1,000,000 to a single child, you easily pay several hundred thousand euros in the Netherlands, considerably less in Flanders in the direct line but still a substantial amount, and in Germany only after an exemption of €400,000. In Cyprus: zero. The difference is real, but only if your home country has actually let go of you at that moment.
Regulatory basis
The Cyprus 0% is real, but it only works if your home country claim has expired, your will contains the correct choice of law, and your structure is sound. We align these three.
→ Book a free introductory consultation
Comparison: inheritance tax in Europe
| Land | Inheritance tax rate | Children's exemption | Note |
|---|---|---|---|
| Cyprus | 0% | not applicable. | Abolished in 2000 |
| The Netherlands | 10–20% | €25.187 | Progressive rate |
| Belgium | 3–30% (Flanders) | €50.000 | varies by region |
| Germany | 7–30% | €400.000 | Every 10 years |
| UK | 40% | £325,000 nil-rate band | Global application |
| Spain | 7,65–34% | Vary by region | Complex regional system |
| Portugal | 10% stamp duty | Immediate family exempt | No inheritance tax sensu stricto |
For an entrepreneur, choosing Cyprus as a country of residence potentially saves tens of thousands to hundreds of thousands of euros in taxes that heirs would otherwise pay.
Frequently Asked Questions about Inheritance Tax in Cyprus
Is there inheritance tax in Cyprus?
No. Inheritance tax, succession duties, and gift tax were completely abolished in Cyprus as of January 1, 2000. Your heirs pay nothing.
Will the Netherlands continue to levy taxes after my emigration?
Yes. Under the ten-year rule (Art. 3, paragraph 1 of the Inheritance Tax Act), a Dutch national who dies or makes a gift within ten years of leaving the country is deemed to reside in the Netherlands. Full Dutch taxation on worldwide assets.
What is forced succession?
The Cypriot Wills and Succession Law (Cap. 195) reserves a portion of your estate for your spouse and children, amounting to up to 75%, regardless of your will.
Do I have to pay inheritance tax as an expat in Cyprus if I am an heir?
Not to Cyprus. But note: if the deceased had assets in another country (e.g. a house in the Netherlands or the UK), that country may levy tax on those specific assets, regardless of your place of residence.
Does the absence of inheritance tax also apply to foreign assets?
Yes, provided the deceased was a tax resident of Cyprus. Cypriot law does not levy tax on foreign assets upon the death of a Cyprus resident.
Are there gift taxes in Cyprus?
No. Cyprus also has no gift tax. Assets can be freely transferred during lifetime or upon death without tax consequences at the Cypriot level.
What is forced succession and how do I avoid it?
Cypriot law reserves a portion of the estate for the spouse and children, regardless of what is stated in the will. This can be arranged through an International Trust or a holding structure. This requires tailored legal advice.
I am coming from the UK. Am I still subject to UK IHT after moving to Cyprus?
For up to 10 years after leaving the UK, you may remain subject to UK IHT on your global assets. UK assets always remain within the UK tax base. Timely planning and potential disposal of UK assets are crucial.
