As from 1st January 2000, Law 74 (1) 2000 came into force. This law abolished all obligations to pay Inheritance tax on the assets of an estate for genuine residents of Cyprus.

The fact that there is no Inheritance Tax to pay under Cypriot law is an encouragement to invest in the island. By establishing domicile in Cyprus citizens of countries covered by Double Taxation Treaties may pass on their assets in Cyprus to beneficiaries of a will.It is therfore advisable for citizens wishing to reside in Cyprus for more than 183 days and become a permanent resident of Cyprus,to appoint a lawyer and make a will which can be lodged with the Cypriot Law Courts.

UK Comparison

The UK imposes a tax of 40% of worldwide assets over 263,000 pounds sterling, against nil rates for Cyprus. It is also worthwhile to note that assets as well as UK pensions are transferable to Cyprus. Income tax levels in Cyprus are less than half the UK Rate.

For comparisons of other European tax rates click on to ''tax comparisons''