When founders think about Cyprus, they focus on corporate tax, Non-Dom dividends, and the 60-day residency rule. Inheritance tax rarely comes up. It should, because Cyprus abolished it in 2000 — and that matters more than most people realise.
No Inheritance Tax, Full Stop
Cyprus has no inheritance tax, estate duty, or death tax. When assets pass from one person to another on death — whether it is cash, shares, property, or intellectual property held through a Cypriot company — there is no tax triggered at the point of transfer.
This is not a threshold or an exemption. It does not phase out above a certain value. It simply does not exist.
For context: the UK charges up to 40% on estates above £325,000. France applies rates up to 45% on direct heirs and higher on indirect ones. Germany has a top rate of 50% for distant relatives. Spain varies by region but can reach 34%.
Cyprus charges nothing.
What This Means for Founders Specifically
If you hold equity in a Cyprus company and you die while tax resident in Cyprus, the shares transfer to your estate free of inheritance tax. The company continues. No forced sale to cover a tax bill.
For founders who have built significant value inside a Cypriot holding structure — whether through IP, recurring revenue, or accumulated retained earnings — this removes one of the most disruptive scenarios in succession planning.
The same applies to real estate held in Cyprus. No inheritance tax on death. Buyers and sellers pay transfer fees on transactions, but inheritance is not a transaction.
Combine This With the Non-Dom Structure
A Cyprus tax resident with Cyprus Non-Dom status pays 2.65% GHS on dividends received, zero withholding on foreign dividends, and zero capital gains on the sale of securities. Add zero inheritance tax to that, and you have a structure where:
- Income is taxed at low effective rates during life
- Company sale proceeds are not subject to CGT on securities
- Death does not trigger an additional levy on whatever remains
The 60-Day Rule Entry Point
You do not need to live in Cyprus full-time to become tax resident. The 60-day tax residency rule allows you to establish Cyprus tax residency with a minimum physical presence — provided you meet certain conditions around days in other countries and economic ties to Cyprus.
For founders who split time between markets, this is the practical route in.
The Yellow Slip Is Your First Document
Once you decide to formalise Cyprus residency, the Yellow Slip guide covers the first registration step for EU citizens. It is the foundation document before you can open a bank account, register with the tax authority, or apply for Non-Dom status.
One Thing to Watch: Forced Heirship
Cyprus follows a forced heirship regime under its succession law. A portion of your estate must pass to certain categories of heir (spouse, children), regardless of your will. This does not create a tax — it is a civil law constraint, not a fiscal one. But it matters for estate planning if you want to leave assets in a specific way.
EU citizens resident in Cyprus can elect for the law of their home country to govern their succession, under EU Succession Regulation 650/2012. This is worth reviewing with a local lawyer if your estate crosses jurisdictions.
Practical Takeaway
If you are structuring a company exit, a long-term holding structure, or thinking about what happens to your assets after a liquidity event, Cyprus is one of the few EU jurisdictions where the answer to "what does the tax system charge on death?" is zero.
That is not a minor footnote. For high-value estates, the difference between Cyprus and the UK, France, or Germany at the point of succession is material.
This is general information, not tax or legal advice. Speak with a Cyprus-qualified adviser before making any decisions.
Cyprus Tax Life covers tax, residency, and relocation for expats and founders in Cyprus.
