Inheritance · British owners

Two rules changed. Most advice online predates one or both.

If you are British and own property in Cyprus, the two things that decide what happens to it both moved recently. One in 2015, one in 2025. A will drafted on the older understanding of either can distribute an estate the law will not allow, or leave a bill nobody planned for.

3 Jul 2015Testamentary freedom ended
6 Apr 2025UK test changed
10/20Years that now decide UK exposure
3–10Year tail after leaving
Change one

The exemption that quietly disappeared

For decades Section 42 of Cap 195 carved British owners out of Cypriot forced heirship. A person whose father was born in the United Kingdom or a Commonwealth country could dispose of their estate freely, regardless of domicile. In practice that gave most British owners of Cyprus property full testamentary freedom, and an enormous amount of advice was written on that basis.

Section 42 was repealed by Law 96(I)/2015, with effect from 3 July 2015. The repeal is prospective, so estates of people who died before that date are unaffected. Everybody else is now inside the forced heirship regime like any other owner.

The consequence is concrete. Where you leave a spouse and children, three quarters of your Cyprus estate is reserved by law and your will directs the remaining quarter. A will drafted in 2010 leaving everything to a spouse was perfectly effective when it was signed. Today it gets cut back.

Who should re-read their will

  • Anybody whose Cyprus will predates 3 July 2015
  • Anybody told they had "British testamentary freedom"
  • Anybody whose will leaves everything to one person
  • Anybody relying on advice given before 2015
Change two

Britain stopped caring where you are domiciled

The standard line for British expatriates was always that inheritance tax follows domicile, that domicile is extraordinarily hard to shed, and that leaving the country therefore does very little. It was good advice, and on 6 April 2025 it stopped being the test.

UK inheritance tax now follows long-term residence. You are a long-term resident, and your worldwide estate is within the charge, if you were UK resident for ten of the previous twenty tax years. Domicile no longer decides it.

Leaving does not end it at the door either. Departing leavers stay within scope for a tail of between three and ten years depending on how long they were resident. So the question for a British owner is no longer the almost unanswerable one about intention and permanent home. It is an arithmetic one about years, which is a great deal easier to plan around.

UK-situated assets remain in charge regardless. This change is about the rest of the estate, which for most people here means the Cyprus property.

The two questions, now

  • Were you UK resident for 10 of the last 20 tax years?
  • If you have left, how far into the tail are you?
  • Is the asset UK-situated? Then it is in charge anyway
  • What does Cyprus forced heirship do with what is left?

Cyprus itself charges no inheritance tax and has not since 2000. Nothing above is a Cyprus liability. It is your own country reaching across, which is exactly why a tidy Cyprus will attached to an unresolved British position is the commonest mistake we see.

The way out

The election almost nobody makes

Losing Section 42 did not leave British owners without options. Article 22 of EU Regulation 650/2012 lets you elect, in your will, for the law of your nationality to govern your succession. English law permits full testamentary freedom. Cypriot law does not. For a British national, that election is the mechanism for stepping back outside forced heirship.

Two conditions matter. It must be made expressly, in the will, and in clear terms. It is never implied and it does not happen because everybody assumed it would. And its reach over Cyprus-situated immovable property is not treated uniformly by practitioners: some regard the election as decisive, others consider forced heirship to bite on local land regardless.

We set both views out rather than choosing one, because this is genuinely unsettled rather than merely complicated. What is not in doubt is that a will without the election gets Cypriot law by default. If you want the argument available at all, it has to be in the document.

A sensible order

  • Work out your UK long-term residence position first
  • Then what Cyprus forced heirship would take
  • Then whether an Article 22 election helps you
  • Then draft, and say expressly what is revoked
  • Tell each adviser the other document exists

The mechanics of a valid Cyprus will are on the making a will page, what happens with no will at all is on the intestacy page, and the full forced heirship shares are on the inheritance hub. The rest of the British picture, including the exit tails on income and gains, is on moving from the UK.

Questions

British owners, asked properly

No, not by default. Section 42 of Cap 195 gave people whose father was born in the United Kingdom or a Commonwealth country the freedom to dispose of their estate as they wished, and it was repealed by Law 96(I)/2015 with effect from 3 July 2015. Since then British owners sit inside Cypriot forced heirship like anybody else, so where you leave a spouse and children three quarters of the estate is reserved and your will directs a quarter. The repeal is prospective: estates of people who died before that date are unaffected.
Not since 6 April 2025. The test is now long-term residence: your worldwide estate is within the UK charge if you were UK resident for ten of the previous twenty tax years, and domicile no longer decides it. Leaving does not end exposure immediately either, because a tail of between three and ten years follows you out depending on how long you were resident. UK-situated assets remain chargeable regardless. A great deal of advice still online was written before this change and describes a test that no longer applies.
Valid, probably, but possibly no longer effective in the way you intended. The 2015 repeal did not invalidate existing wills; it removed the freedom many of them relied on. A will leaving everything to one person is not void, it is cut back to the disposable portion. If your Cyprus will predates 3 July 2015, or was drafted on the basis that being British gave you free choice, it is worth reading again against the current shares.
Possibly, through an express election under Article 22 of the EU Succession Regulation for the law of your nationality to govern your succession. English law permits full testamentary freedom, so for a British national the election is the route back out. It has to be made expressly in the will and is never implied. How far it reaches over Cyprus-situated immovable property is treated differently by different practitioners, so treat it as an argument worth having available rather than a settled answer, and get it advised in writing.
No. Cyprus abolished inheritance tax in 2000 and charges nothing on the value passing. Every tax question a British owner faces here is a British one reaching across, not a Cypriot liability. What Cyprus does control is who inherits, through forced heirship, and how quickly the estate can be administered.

British, and own something here?

Tell us when your will was drafted, how long you were UK resident and who is in the family. We will tell you plainly whether the will still does what you think it does.

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Sources and verification

Checked against primary legislation and official publications on 5 August 2026.

One point on this page is genuinely unsettled rather than simplified: how far an Article 22 election reaches over Cyprus-situated immovable property, where reputable practitioners take opposing views. We set both out rather than choosing. The UK figures are the general rule and there are transitional provisions for people already non-resident before April 2025, so check your own position rather than reading across. This page is general information, not tax, legal, immigration or investment advice, and individual circumstances change the answer.