A recent change to the Wills and Succession Law has important implications for many British people and nationals of other Commonwealth countries with immovable property in Cyprus.
Like many countries in the world Cyprus has a "forced heirship" regime. Section 41 of the Wills and Succession Law, Cap 195, sets aside a specified proportion, known as the statutory portion, of a deceased person's estate for close relatives. The statutory portion must be passed to the relatives concerned and cannot be disposed of by the individual's will. For example, if an individual dies leaving a spouse and a child, three-quarters of the value of the estate is reserved for them and divided equally between them. Only the remaining quarter of the estate can be disposed of by the individual's will.
Prior to July 2015 British citizens and citizens of most former British colonies (excluding Cyprus) were exempt from the forced heirship provisions. However, Law 96(I) of 2015 withdrew this exemption and the forced heirship provisions now apply to anyone who dies domiciled in Cyprus and to the succession to any real estate located in Cyprus, regardless of the domicile of the deceased person.
These changes, which also affect shares in Cyprus companies, can give rise to unforeseen and undesired consequences, particularly if relations between the surviving individuals are not good.
There are a number of ways in which the status quo ante may be restored and freedom to dispose of one's property as one wishes can be regained, depending on individual circumstances. We strongly advise anyone potentially affected by the changes to take specialist legal advice at the earliest opportunity.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
