Estate Planning in CyprusUpdated on Tuesday 22nd September 2015
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Estate planning solutions in Cyprus
Will and trusts are the most popular and reliable estate planning solutions in Cyprus. Both solutions provide an individual the legal means to dispose of their property as seeing fit. According to the Cypriot laws, estate may be divided into a disposable portion a statutory portion. The disposable portion is the part of the estate one can freely dispose of through a will, while the statutory portion will be distributed according to the Cypriot Civil Code. Succession laws in Cyprus are divided as it follows:
- - the Wills and Succession Law, Chapter 195,
- - the Administration of Estate Law, Chapter 189,
- - the Probates or Re-Sealing Law, Chapter 192.
Wills as estate planning tools in Cyprus
The will is one of the most powerful estate planning tools available for both Cypriot citizens and foreign citizens living on the island. The estate of an individual domiciled in Cyprus will be disposed of according to the Cypriot laws. Foreign citizens owning real estate in Cyprus will also be subject to the Wills and Succession Law.
When it comes to the domicile of foreign citizens, it is advisable to discuss the matter with a law firm in Cyprus in order to find out all the possibilities related to the estate planning through will. The domicile is important because of its impact in taxation matters. Compared to other European jurisdictions, there is no estate tax in Cyprus for property owned on the island.
Trusts as estate planning solutions in Cyprus
Compared to the will, the trust is a legal entity in Cyprus. The only resemblance to will is that through a trust one can establish how the estate will be distributed. Also, one can benefit from a personalized state planning solution when setting up a trust in Cyprus. Additionally, trusts can be employed as property management solutions. However, being a legal entity, the trust will also involve complex tax issues, which is why it is better to appeal to the services of a Cypriot law firm when establishing a trust.
For customized estate planning solutions and whether a will or a trust advantages you most you can contact our attorneys in Cyprus. You can also give power of attorney to our Cypriot lawyers if you want to set up a trust from abroad.