In Cyprus, the distribution of a deceased person's estate is primarily governed by the Wills and Succession Law (Cap. 195) and the Administration of Estates Law (Cap. 189). Cap. 195 applies to individuals who were domiciled in Cyprus at the time of death and encompasses both movable and immovable property. The legislation establishes a forced heirship regime, which restricts the testator's ability to dispose of their estate entirely through a will, ensuring that certain family members—namely spouses, children, or parents—are entitled to a statutory share. When a valid will exists, the estate is distributed in accordance with the deceased's wishes, subject to these statutory limitations. In the absence of a will, distribution is carried out in line with the prescribed intestacy rules under Cap. 195.
The Forced Heirship Framework in Cyprus
Cyprus succession law does not allow for complete testamentary freedom. Cap. 195 divides the estate into two parts: the statutory portion, which must be allocated to specific close relatives (spouse, children, or their descendants), and the disposable portion, which the testator may distribute as they wish.
The extent of the disposable portion depends on the deceased's surviving family members, as follows:
- If survived by a spouse and child(ren) or their descendants, only one-quarter of the estate may be freely disposed of.
- If survived by a spouse and one or both parents (but no children or their descendants), one-half of the estate is disposable.
- If no spouse, child, descendant, or parent survives the deceased, the entire estate is at the testator's disposal.
These provisions are laid out under Article 41(1) of the Wills and Succession Law, Cap. 195.
Repeal of Section 42 of Cap. 195
The repeal of Section 42 of the Wills and Succession Law has brought about notable changes, particularly impacting British nationals and others who previously relied on its terms to exercise full testamentary freedom over their assets in Cyprus.
Previously, Section 42 allowed individuals whose father was born in the United Kingdom or a Commonwealth country to dispose of their estate freely, regardless of their domicile status in Cyprus. With the abolition of this section through Law 96(I)/2015, such individuals are now fully subject to Cyprus's forced heirship rules. As a result, they are no longer able to exclude legal heirs—such as natural children—from inheriting their statutory share, even through a will.
In practice, this means that natural children are legally entitled to inherit a portion of the estate equal to that of the surviving spouse, and a will attempting to bequeath the entire estate to a spouse alone would be invalid to the extent it conflicts with these provisions.
Effect of Forced Heirship on the Validity of Wills
It is crucial to emphasize that a will made in contravention of Cyprus's forced heirship provisions is not rendered void in its entirety. Rather, it is deemed invalid only to the extent that it conflicts with the mandatory rules on statutory succession. Any remaining provisions of the will that are compliant with the law will continue to be valid and enforceable.
The impact of these limitations became more pronounced following the legislative changes introduced in 2015, which redefined how succession law applies to foreign nationals in Cyprus.
Legal Consequences and Transitional Provisions
These legislative changes were formalized through Law 96(I)/2015 and have important implications for British nationals and others who previously relied on Section 42 of Cap. 195.
Following the enactment of Law 96(I)/2015, British nationals who pass away on or after 3 July 2015 are fully subject to Cyprus's succession regime, including the restrictions on testamentary freedom. The repeal of Section 42 applies only prospectively. Therefore, it does not affect estates of individuals who died before 3 July 2015.
For individuals who executed a will before this date but died afterwards, the new legal regime applies, as a will becomes effective only upon the testator's death and is subject to the law in force at that time.
Importantly, the date on which the will was drafted does not determine the applicable legal framework, as a will may be amended or revoked at any time, subject to the testator's intentions.
While these rules impose stricter limitations on testamentary freedom, individuals with cross-border ties may still have options to avoid the default application of Cyprus succession law.
Interaction with EU Regulation 650/2012 (Brussels IV)
One such mechanism is found under Regulation (EU) No. 650/2012 ("Brussels IV") which came into effect on 17 August 2015 and governs succession matters across participating EU member states. It provides key guidance for individuals with assets in Cyprus:
- Cypriot law will apply to the succession of the estate.
- Cypriot courts will have jurisdiction over succession matters.
However, the Regulation grants individuals the right to elect the law of their nationality to govern their estate. This means, for example, that a British national owning assets in Cyprus may choose UK law to govern their estate, thereby avoiding the application of Cyprus's forced heirship rules. To be valid, this choice must be expressly stated in the individual's will. In the absence of such an express declaration, the default rule is that the law of the individual's habitual residence at the time of death will apply.
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.
