1. BELGIUM: Droits de succession or successierechten (Inheritance tax). Collected at the federal level, but distributed to the regional level.
INHERITANCE TAX: BRUSSELS REGION
If the deceased was resident in the
Brussels region, the spouse, direct descendants and direct ascendants are
entitled to a tax-free allowance of €15,000 each. For children below 21 years
of age, the allowance is increased by €2,500 for each year below the age of 21.
For other beneficiaries, inheritances not exceeding €1,250 are not taxable.
| TAX BASE(€) | TAX RATE |
| Up to €50,000 | 3% |
| €50,000 - €100,000 | 8% |
| €100,000 - €175,000 | 9% |
| €175,000 - €250,000 | 18% |
| €250,000 - €500,000 | 24% |
| Over €500,000 | 30% |
| Source: Global Property Guide | |
The rates for brothers and
sisters vary between 20% and 65%, where the minimum rate applies to
inheritances up to €12,500 and the maximum rate applies to inheritances
exceeding €250,000.
The inheritance rates vary
between 25% and 70% for uncles, aunts, cousins, nieces and nephews. For all
other individuals, the tax is levied between 40% and 80%. The minimum rate
applies to inheritances up to €50,000 and the maximum rate applies to
inheritances exceeding €175,000.
INHERITANCE TAX: FLEMISH REGION
The inheritance is split into
immovable and movable parts, which are then taxed at progressive rates. A
maximum reduction of €500 is granted if the taxable share does not exceed
€50,000.
| TAX BASE(€) | TAX RATE |
| Up to €50,000 | 3% |
| €50,000 - €250,000 | 9% |
| Over €250,000 | 27% |
| Source: Global Property Guide | |
The rates for brothers and sisters vary between 30% and 65%. For all
other individuals, the tax is levied between 45% and 65%. In all these
cases, the minimum rate applies to inheritances up to €75,000 and the
maximum rate applies to inheritances exceeding €175,000.
INHERITANCE TAX: WALLOON REGION
If the deceased was resident in the Walloon region, the spouse, direct descendants and direct ascendants are entitled to a tax-free allowance of €12,500 each. The allowance is increased to €25,000, if the inheritance does not exceed €125,000. For children below 21 years of age, the allowance is increased by €2,500 for each year below the age of 21. For other beneficiaries, inheritances not exceeding €620 are tax-exempt.
| TAX BASE (€) | TAX RATE | ||
| Up to €12,500 | 3% | ||
| €12,500 - €25,000 | 4% | ||
| €25,000 - €50,000 | 5% | ||
| €50,000 - €100,000 | 7% | ||
| €100,000 - €150,000 | 10% | ||
| €150,000 - €200,000 | 14% | ||
| €200,000 - €250,000 | 18% | ||
| €250,000 - €500,000 | 24% | ||
| Over €500,000 | 30% | ||
| Source: Global Property Guide | |||
The rates for brothers and sisters vary between 20% and 65%. The rates
vary between 25% and 70% for uncles, aunts, cousins, nieces and
nephews. For all other individuals, the tax is levied between 30% and
80%. In all these cases, the minimum rate applies to inheritances up to
€12,500 and the maximum rate applies to inheritances exceeding
€175,000.
2. CZECH REPUBLIC: Dan dědická (Inheritance tax)
For purpose of calculation of the inheritance tax, persons are
divided into three categories depending on relationship of the decedent
and the acquirer. The categories / relationships are as follows:
I. Category: Direct relatives (in the direct line) and spouses.
II. Category: (i) Other relatives (in the collateral line), namely
siblings, nephews, nieces, uncles and aunts, (ii) children’s spouses
(sons-in-law and daughters-in-law), husband’s children, husband’s
parents, and (iii) individuals living with the acquirer in a common
household for at least a year prior to the decedent’s death, and who for
that reason took care of the common household or who were dependent on
the acquirer or decedent for their support (maintenance).
III. Category: Other individuals and legal entities not falling into the I. and/or II. category.
In
the case of most tax exemptions, the obligation to file the inheritance
tax return does not arise; however, certain tax exemptions must be
claimed within the inheritance tax return.
$1 = 17.4620 Czech Republic Koruna
Tax base Tax rate from tax base exceeding over CZK to CZK the amount of CZK -
1,000,000 3.5%
1,000,000 2,000,000 CZK 35,000 + 4.5% 1,000,000
2,000,000 5,000,000 CZK 80,000 + 6.0% 2,000,000
5,000,000 7,000,000 CZK 260,000 + 7.5% 5,000,000
7,000,000 10,000,000 CZK 410,000 + 9.0% 7,000,000
10,000,000 20,000,000 CZK 680,000 + 10.5% 10,000,000
20,000,000 30,000,000 CZK 1,730,000 + 12.5% 20,000,000
30,000,000 40,000,000 CZK 2,980,000 + 15.0% 30,000,000
40,000,000 50,000,000 CZK 4,480,000 + 17.5% 40,000,000
50,000,000 - CZK 6,230,000 + 20.0% 50,000,000
*As acquisition of property by inheritance between PERSONS OF THE CATEGORY I AND CATEGORY II ARE TAX EXEMPT REGARDLESS OF THE AMOUNT OF THE ESTATE, we indicate only tax rates applicable to
persons of the III category.
3. FINLAND: Perintövero
Beneficiaries are divided into two categories, depending on their relationship with the deceased.
- Category I – close relative of the deceased/donor such as the spouse (including a cohabiting partner if the partners have a common child or if they have previously been married to each other), any lineal descendant or ascendant (including adoptive child relation) of the decedent and any lineal descendant of the decedent´s spouse
- Category II – all other beneficiaries
The spouse may deduct €60,000 from his inheritance as personal
allowance. Any lineal descendant under 18 years of age may deduct
€40,000 if he is the closest beneficiary of the deceased.
INHERITANCE TAX |
||
| TAX BASE, € | ||
| Up to €20,400 | ||
| €20,000 – 40,000 | ||
| €40,000 – €60,000 | ||
| Over €60,000 | ||
| Source: Global Property Guide | ||
INHERITANCE TAX |
||
| TAX BASE, € | ||
| Up to €4,000 | ||
| €4,000 – 17,000 | ||
| €17,000 - €50,000 | ||
| Over €50,000 | ||
| Source: Global Property Guide | ||
4. SWEDEN: Arvskatt (Swedish) (Inheritance tax) was ABOLISHED IN 2005.
5. FRANCE: Droits de succession (Inheritance tax)
There is (since 22 August 2007) no succession tax on inheritances
between spouses and PACS partners, but tax is still due on life-time
gifts over the available allowance (see below). This inheritance tax
exemption extends to sisters and brothers who are single, widowed or
divorced providing that at the time of succession they are aged more
than 50 or are suffering from an illness which prevents them from
working, and they were living with the deceased during the five years
preceding the death.
Succession tax rates for 2010
Taxable inheritance to spouses and PACS partners (gifts only):
| Taxable inheritance | To spouses and PACS partners: (gifts only) | Tax on band (€) | Cumulative Tax (€) |
|---|---|---|---|
| Less than €7,953 | 5% | 398 | 398 |
| €7,953 to €15,697 | 10% | 774 | 1,172 |
| €15,697 to €31,395 | 15% | 2,345 | 3,527 |
| €31,395 to €544,173 | 20% | 102,556 | 106,083 |
| €544,173 to €889,514 | 30% | 103,602 | 209,685 |
| €889,514 to €1,779,029 | 35% | 311,330 | 521,015 |
| Above €1,779,029 | 40% |
Taxable inheritance in the direct line, including adopted children but not step-children unless adopted:
| Taxable inheritance | In the direct line | Tax on band (€) | Cumulative Tax (€) |
|---|---|---|---|
| Less than €7,953 | 5% | 398 | 398 |
| €7,953 to €11,930 | 10% | 398 | 796 |
| €11,930 to €15,697 | 15% | 565 | 1,361 |
| €15,697 to €544,173 | 20% | 105,695 | 107,056 |
| €544,173 to €889,514 | 30% | 103,602 | 210,658 |
| €889,514 to €1,779,029 | 35% | 311,330 | 531,988 |
| Above €1,779,029 | 40% |
Taxable inheritance: siblings and other relatives and non-relatives:
| Taxable inheritance | Brothers & Sisters | Other relatives to the 4th degree | More remote and non-relatives |
|---|---|---|---|
| Less than €24,069 | 35% | 55% | 60% |
| Above €24,069 | 45% | 55% | 60% |
Allowances for 2010
- Spouses - gifts (inheritances exempt): €79,533
- Partners under PACS - gifts (inheritances exempt): €79,533
- To each natural or adopted child from each parent: €156,974
- To each natural or adoptive parent: €156,974
- To children on your divorce (up to age 18): €2,700 pa, per child
- To a grandchild (gifts only): €31,395
- To a great-grandchild (gifts only): €5,232
- Cash gifts to a child, grandchild or possibly nephew/niece
- subject to donor's/donee's ages
- non-renewable: €31,395
- To unmarried brother/sister
- over 50 or invalid
- who has lived with deceased for at least the last five years (gift only): €79,533
- To a sibling not covered above €15,697
- To a nephew/niece (gifts and inheritances) €7,849
- To a nephew/niece by representation of a sibling €15,697
- To any other person €1,570
- To any disabled person - additional to above €156,974
The living representatives of a deceased descendant share that
descendant's allowance between them in addition to their own
allowances.
Unmarried couples are taxable as "strangers" and so have an allowance of only a €1,570 unless they have entered into a PACS agreement,
the French version of a civil partnership, open to both same and
opposite couples in France. If a PACS agreement is broken before the
end of the year following the year it was entered into, for motives
other than marriage of the couple or death of one of the partners, the
allowance will be denied and the tax relief clawed back. PACS partners
are entitled to a deduction of 30 percent from the value of the main
residence in the same way as a married couple is.
The allowances (with the exception of the one-off cash gift
allowance) all renew every six years for lifetime gifts. Gifts up to
the available allowances can thus be made every six years tax-free.
6. GERMANY: Erbschaftssteuer (Inheritance tax)
Inheritance tax is levied on transfers of property or assets after
death. This duty is paid by the beneficiary. Applicable inheritance tax
rates vary depending on the relationship of the beneficiary to the
deceased. There are three relevant classes of relationship and
exemptions applicable:
Transfers of property are subject to inheritance tax at graduated
rates depending on the value of the property and the classes of family
relationship.
| Class I | Exemption Amount | Tax Rate | ||
| Spouse | € 500,000 | 7%-30% | ||
| Children and step-children | € 400,000 | 7%-30% | ||
| Grandchildren | € 200,000 | 7%-30% | ||
| Parents, grandparents, Great-grandchildren | € 100,000 | 7%-30% | ||
| Class II | ||||
| Siblings and their children, step-parents, | ||||
| parents-in-law, brothers-in-law, sisters-in-law, | ||||
| divorced spouse | € 20,000 | 15%-43% | ||
| Class III | ||||
| All other individuals and organisations | € 20,000 | 30%-50% |
Source: Global Property Guide
The lower rates for each category apply to properties or assets up to a value of €75,000 while the higher rates apply to acquisitions exceeding €26 million.
7. IRELAND: Inheritance tax (Cáin Oidhreachta)
For a surviving spouse OR surviving civil partners taking an
inheritance from a deceased spouse or civil partner, the inheritance
is completely exempt and, no matter how valuable, will not be liable to inheritance
tax.
For
a child (and in some cases, a parent), called a "Group A" beneficiary,
the first €332,084 is tax-free. Any remainder is taxed at 25%.
For
a parent, in most cases, brother, sister, niece, nephew or grandchild,
called a "Group B" beneficiary, the first €33,208 is tax-free and the
remainder is taxed at 25%.
For
a heir other than a a Group A or Group B beneficiary, the first €16,604
is tax-free. The remainder of the inheritance, if any, is taxed at
25%.
8. ITALY: Tassa di successione (Inheritance tax). Abolished in 2001 and reestablished in 2006. There is a €1,000,000 exemption on a bequest to a spouse or child, and a maximum rate of 8%. The new Italian inheritance tax is now levied at three different flat rates, on the whole or part of the estate, with reference to the legatees or devisees as follows:
Where the Estate or part of the Estate devolves to one or more disabled children, the exempt amount is increased to €1,500,000.
Subject to an exempt amount of €100,000 each, inheritances are taxed at 6% where they devolve to brothers, sisters and to other relatives of the decedent up to the 4th degree. After the 4th degree, beneficiaries are still taxed at 4%, but there is no "exempt amount."
Where the estate, in whole or in part, devolves to unrelated parties, inheritances are taxed at 8%.
In practice, this means that the small / medium estates in Italy are not subject to inheritance taxes and even very large estates can escape massive tax bills if a great bulk of the estate is invested in a business or substantial shareholding in a company, whatever its amount. Finanziaria 2007 now states that where the estate includes a business or a substantial stake in an ongoing concern, whatever its value, said assets shall not be taxed; provided, they are passed onto the children of the decedent and the said children undertake to continue to carry on the business or control the company for at least 5 years.
To Be Continued....
