Inheriting property in Cyprus requires careful attention and knowledge of local legislation. In this article we will look at the main stages and nuances to be considered when inheriting property in Cyprus.
The legal basis of inheritance in Cyprus
Inheritance in Cyprus is governed by a body of legislation comprising several acts, the most important of which are the Wills Act and the Succession Act. It is important to note that Cyprus has a system of compulsory portions, which guarantees certain categories of heirs a portion of the estate, irrespective of the will. This means that you cannot leave your entire estate to your favourite Cypriot cat if there is only one relative.
Availability of a Will
The first step in the inheritance process is to check whether there is a will. If there is a will, it must be legally valid and comply with the requirements of Cypriot law. The will must be notarised to avoid any possible disputes. However, there may be more than one. The most recent version is required.
The process of inheritance without a will
If there is no will, inheritance takes place according to the law. The heirs must apply to the court for a certificate of right of inheritance. There are certain lines of inheritance that include spouses, children, parents and other relatives.
Collecting documents
In order to carry out a real estate inheritance, it is necessary to collect the following package of documents
- Death certificate of the deceased;
- Will (if any)
- Documents confirming the family relationship with the deceased;
- Documents relating to the property (contract of sale, but the most important is the title deed);
- Documents confirming the absence of tax and utility arrears.
Estimating the value of the property
In order to determine the value of the inherited property, a valuation is required. The valuation is carried out by a licensed valuer and is necessary to calculate the taxes and fees payable by the heirs.
Payment of Taxes and Charges
In Cyprus, the inheritance and gift of real estate is tax free if the testator was permanently resident in Cyprus, i.e. domiciled. Otherwise, the amount of tax payable depends on the value of the property and the degree of kinship between the heirs. There are different tax rates which may vary depending on these factors. The heirs are obliged to pay all taxes and duties before they take possession of the property. It should be noted that a foreign testator has a limited right to choose the law of succession. For example, the law of a third country if he has the appropriate nationality. This should be expressly mentioned in the Cypriot will.
Obtaining a Certificate of Inheritance
Once all taxes and fees, if any, have been paid, it is necessary to apply to the court for a certificate of inheritance. This is a document that confirms the heirs' right to the testator's property. The court examines all the documents presented and makes a decision on the transfer of the property to the heirs.
Registration of the title
The final stage is the registration of the title to the property in the Land Registry. To do this, the heirs must present a certificate of right of inheritance, documents relating to the property and pay all the necessary fees. Registration takes place at the local land registry office.
Special features for foreign nationals
Foreign nationals can inherit property in Cyprus, but there are certain restrictions and peculiarities. It is important to note that foreigners may need permission from the Council of Ministers of Cyprus to register property. In addition, foreign heirs must comply with all the requirements of Cypriot law, including tax obligations.
Inheriting property in Cyprus requires careful compliance with legal procedures and careful attention to the collection of documents. It is important to consider all the nuances, including the existence of a will, tax obligations and the particularities for foreign nationals. It is advisable to seek professional legal advice in order to avoid possible complications and speed up the inheritance process.
The correct execution of an inheritance in Cyprus will avoid legal disputes and also ensure the legal ownership of the inherited property anywhere in the EU, without additional forensic examination.
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