The European Union introduced Regulation (EU) No. 650/2012, commonly referred to as the EU Succession Regulation or Brussels IV, to simplify cross-border inheritance matters. The Regulation applies to deaths occurring on or after 17 August 2015 and has significant implications for individuals with property in Cyprus but connections abroad.
Although Cyprus has not opted into the Regulation as a Member State, the rules still affect estates in Cyprus when the deceased had links to another participating EU country. Understanding how the Regulation interacts with Cyprus succession law is essential for both testators and heirs.
The General Rule: Law of the Last Habitual Residence
Under the Regulation, the law of the deceased's last habitual residence will generally govern the entire estate. This means that if a person lived in France but owned immovable property in Cyprus, French succession law would normally apply to the estate, including the Cypriot property.
This represents a major departure from traditional principles of private international law, which often applied the law of the country where immovable property was located.
Choice of Law by Nationality
The Regulation allows an individual to choose the law of their nationality to govern their estate. For example, a British or German national living in Cyprus may expressly elect in their will that the succession of their estate, including property in Cyprus, is governed by the law of their nationality.
This choice must be made clearly and expressly in a will. Without such an election, the law of the last habitual residence applies by default.
Cyprus and the EU Succession Regulation
Cyprus has not opted into the EU Succession Regulation. Nevertheless, the Cypriot courts and authorities must recognise and give effect to a choice of law made under the Regulation, provided the deceased was a national of an EU Member State bound by the Regulation.
In practice, this means that wills executed by foreign nationals with assets in Cyprus can rely on the Regulation to avoid the application of Cyprus' forced heirship rules, provided the choice of law has been properly made.
Why This Matters
The interaction between the Regulation and Cyprus law is particularly important for:
– Foreign nationals residing in Cyprus who want to ensure their estate is distributed according to the law of their nationality.
– Expats and retirees with property in Cyprus, who may otherwise be caught by Cyprus' forced heirship system.
– Families of deceased persons where cross-border succession issues arise, especially where there is property in Cyprus but heirs live abroad.
Failure to plan properly can result in uncertainty, disputes among heirs, and unexpected application of forced heirship provisions.
How We Can Help
Our firm advises both Cyprus residents and foreign nationals on succession planning, wills, and cross-border inheritance issues. We assist with:
– Drafting wills that incorporate a valid choice of law under the EU Succession Regulation.
– Advising on the application of Cyprus forced heirship rules and how to avoid them.
– Handling probate and estate administration in Cyprus where the deceased owned local property.
– Representing heirs in disputes and ensuring their rights are protected.
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.
