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Cyprus Inheritance and Gift Tax Guide 2026

Cyprus does not impose inheritance tax, gift tax, or estate tax of any kind. The inheritance tax was abolished effective 1 January 2000. Assets of any value — cash, property, shares, businesses, or any other assets — can be transferred to heirs or recipients free of any inheritance or gift tax liability.

This makes Cyprus one of the most advantageous jurisdictions in the EU for wealth succession planning. For related guidance, see our Wealth Tax Guide → and Cross-Border Guide →.

No Inheritance Tax

Cyprus abolished inheritance tax (estate duty) with effect from 1 January 2000. There is no inheritance tax, estate tax, or succession duty payable on the transfer of assets from a deceased person to their heirs, regardless of:

  • The value of the estate (no upper or lower limit)
  • The relationship between the deceased and the heir
  • The type of assets (property, shares, cash, business interests)
  • The residency or domicile of the deceased or the heir

No Gift Tax

There is no gift tax in Cyprus. Gifts of any amount and type between living persons are not subject to any gift tax, regardless of:

  • The value of the gift
  • The relationship between donor and recipient
  • Whether the gift is in cash, property, or other assets
  • The frequency of gifts

Potential Tax Implications of Gifts and Inheritances

While there is no inheritance or gift tax, certain indirect tax consequences may arise:

  • CGT on property: If the deceased or donor acquired property at a lower value, the recipient may face CGT on a subsequent sale (based on the original acquisition cost)
  • Transfer fees: Gifts of immovable property may incur transfer fees (3–8%) payable to the Department of Lands and Surveys
  • Stamp duty: May apply on certain gift documentation at 0.15–0.20%
  • Income tax: If the asset generates income (e.g., rental property), the recipient is taxed on that income at standard rates
  • Succession law: Cyprus has forced heirship rules for Cypriot nationals, which may affect asset distribution despite the absence of tax

International Trusts and Foundations

Cyprus also offers a modern international trusts regime. Trusts can be used for estate planning, asset protection, and succession purposes. Cyprus trusts are tax-efficient, with beneficiaries taxed only on distributions received (not on trust income accumulated within the trust). The absence of inheritance and gift tax makes Cyprus trusts particularly attractive for high-net-worth families.