Gift and inheritance taxes in EU countries.

When acquiring assets in the EU countries, their owners are faced with the burden of inheritance and gift, and, consequently, with the payment of taxes associated with them.

In today's world, you can live and work in different parts of the world. It’s a sin not to take advantage of this circumstance, choosing the most suitable climate, working conditions, living expenses, and much more.

But what should not be forgotten under any circumstances is taxes: proper planning is an integral part of the procedure for choosing a future country of residence.

So what should be taken into account if taxes on gift and inherited property are paramount?

Currently, Cyprus, Estonia, Liechtenstein, Norway, Slovakia and Sweden do not have a gift tax or inheritance tax. The Czech Republic does not formally have gift and inheritance taxes, but the value of donated & inherited assets is included in the total taxable income.

In the UK, there is only inheritance tax, although gifts made under certain circumstances are also subject to taxation. In Austria, neither inheritance nor gift taxes are applied, but the transfer of real estate involves the payment of the corresponding tax.

In all jurisdictions, the amount of tax depends on the degree of kinship between the heir and the donor. In some countries - in France, for example, the rules of enforced inheritance law apply, determining who can be the heir, and in "what part".

A typical case when comparing different jurisdictions is the transfer of assets to a spouse. It should be noted that Belgium, Cyprus, Estonia, Germany, Greece, Italy, the Netherlands, Slovakia, and Spain  do not exempt from paying tax, but they set a certain threshold for exceeding which tax obligations arise. In “generous” Italy, for example, threshhold amounts to 1,000,000 euros.

Several other conditions apply to the transfer of assets to children: there is no tax in the Czech Republic, Finland, Luxembourg, Poland, Portugal and Switzerland.

Tax rate. In most EU countries, the tax rate depends on the total value of the assets, and often varies based on the category of the asset and the relationship between the beneficiary and the donor. Only Denmark, Ireland and the UK fixed the inheritance tax rate.

Consultations on taxation issues in the EU countries are carried out by specialists of our company in writing and on the basis of a written request.