Renvoi

Many UK nationals own real estate in the Republic of Cyprus in which they have either relocated permanently, or use it as accommodation for their summer holidays, or even leasing it in order to have a stable passive income.

History:

The Republic of Cyprus was a colony of the British Empire until 1960 when it was declared an independent state. Nevertheless, the institutional framework of the newly formed state was the natural continuation of the pre-existing situation and the legal system of the common law was maintained. 

Article 42 (a) of the Wills and Succession Law (CAP.195) of the Republic of Cyprus provided that any person born in the United Kingdom could dispose of all his movable and immovable property as he wished without having to apply the provisions of statutory portion/forced heirship provided by the Cyprus Law.

Statutory Portion/ Forced Heirship:

In contrast to the United Kingdom where the general rule is that the testator can dispose all of his property where he wishes, in the Republic of Cyprus under the provisions of Article 41 of Cap. 195, no one can freely dispose of all his property when he leaves a spouse or children. A large part of his property (50% -75%) must be distributed in equal shares between his children and spouse and the testator cannot dispose to third parties this part of his property.

Problem:

Unfortunately, following the amendment of the law 96 (I)/2015, Article 42 (a) was deleted, effectively abolishing the right of UK residents to dispose of their property wherever they wish. Pursuant to Article 21 of the European Regulation 650/12, the provisions of the law of the country of their habitual residence regarding the distribution of their property will apply to the inheritance of those who have their habitual residence in the United Kingdom. However, English law itself provides that for immovable property located outside the United Kingdom, the provisions of the law of the State in which the property is located must apply.

Unfortunately, while European law provides that English inheritance law will apply to residents of the United Kingdom, the United Kingdom itself provides that the law applicable to a property located in Cyprus will be the laws of the Republic of Cyprus and therefore all provisions and restrictions of statutory portion/forced heirship will apply.

Solution:

The above problem is described in Article 34 of European Regulation 650/12 under the heading Renvoi. Article 34 (1)(b) makes it clear that under the Renvoi the applicable law will be that of the Republic of Cyprus unless under Article 34(2) the testator makes a choice of applicable law under Article 22(1) of the Regulation.

The testator leaving a Cypriot will in which the applicable law is chosen, can choose the inheritance law of the United Kingdom and consequently he will be able to freely dispose of all his property to any legatee he wishes.

Types of wills:

Regardless of which will be the applicable law, in order for a will to be valid in Cyprus, the provisions of Article 23 of Cap. 195 regarding its drafting and certification must be followed. 

Regarding the safekeeping of the will, it can be kept by a person of the testator’s choice, or it can be filed in the District Court of Nicosia. It is better to file a will because this way it is more difficult to challenge it and impossible to ignore.

Author: Christos Th. Tryfonos