Taxes on inheritance and gifts in Europe

Any wealthy man at a mature age when buying real estate or expensive property think about how to leave his heirs. If you make a buy in the EU, should know the laws and regulations of the transfer of the property in the inheritance or gift. In some countries in Europe, they differ much, so even before the purchase should clarify important points.

How to transfer the assets in the gift?

If the taxation acts of donation shall take into account the class of assets and the degree of relationship between the parties to the Act. The highest tax rate will apply if you treat the assets of the person, not composed with you in the relationship. The lowest – in the giving the spouse, the children.

If you want to give the assets of the spouse, you need to take into account the value of these assets. This is important for taxation. In some European countries the rate of donation is zero, however, there is a threshold value of assets, after which the tax has been applied. This rule operates in Cyprus, in Spain, Greece, Belgium, Estonia, Germany, Italy, the Netherlands, and Slovakia. For example, the threshold for Italy is an evaluation of the assets in the 1 million euros.

If you give assets to children, it is better to do so in Portugal, Switzerland, Czech Republic, Finland, Luxembourg, Poland. Here such a gift is not taxed.

As inheritance decorate in Europe?

Up to the year, 2015 in Europe acted quite hard and it is not always easy-to-use laws and regulations of the transfer of the property in the inheritance. In particular, the earlier transfer of the property came under the laws of the country, where located the object. In many countries, there is a rule on the mandatory allocation of share of the inheritance members of the family. If the assets are, such as, in France, you will need it was necessary to divide three quarters of the children and one-quarter of a spouse.

Now the transfer of assets in inheritance occurs according to the laws of the country residence of their owner. Of course, we are talking about the countries of the European Union. That is, if you live in, such as, in Cyprus. And the assets located in France, that inheritance will occur for the Cypriot laws, in which there are no restrictions on the compulsory share. Profitable, isn’t it?

Note that this rule does not only run in the UK, Denmark, Ireland.

The assets in these countries, send the inheritance by their laws. The document on the inheritance of recognized in all EU countries.

It is important!

What do you need to take into account when planning the inheritance?

– Whom you will be able to transfer property in the inheritance. There are countries where the law requires you to divide the inheritance to share between certain relatives

What taxes have to pay. Learn tax rate, the terms and conditions of its application, and how burdensome for will inherit

– can I avoid paying tax or cut the amount? In some countries in Europe at registration of real estate on a special company you are exempt from the tax

The rates of taxes on inheritance and gifts in the countries of Europe

Tax rates largely the same for inheritance, and for the gift. The amount of tax depends on the country, region, the degree of a kinship. The closer the relationship, the less tax.

– 0%. In some European countries, this tax is absent – in Cyprus, in Portugal. Austria *, Latvia, Norway, Sweden and Estonia

– 1-10%. Low tax rates are in Bulgaria (to 6.6%), Italy (4-8%), Turkey (1-10%), Montenegro (3%), Croatia (5%)

– 0-40%. In most countries, taxes are high, and low rates apply only under certain conditions. This is the United Kingdom. Hungary, Greece. Slovenia, the Czech Republic, Finland (to 36%), Spain (7,6-34%)

– 0-60%. The highest rates – in Germany (thickness under%) and France (5-60%)

* in Austria, the tax rate is zero, however, will have to pay tax on the transfer of ownership rights (2-3,5%).

To pay a tax to the country where there are assets that are hereditary. In other words, if you live in Cyprus, and transmitted the property to France, the transfer of the inheritance will be held on the Cyprus laws and the tax you pay on French online. And they are the highest in Europe!

Optimally, if you live in and own assets in the same country. In this case, you can transfer the assets of the next of kin with large tax discounts. In order to move to the EU, use one of the official state programs for wealthy people who want to have a residence permit, permanent residence, or immediately citizenship in Europe.

Tax on inheritance in Scandinavian countries there is an inherited, that is, the Property remaining from the deceased person on whose behalf the tax organ has itself fills in the declaration. The deceased during the financial year and his inheritance tax as lived here a year. If the inheritance divided in the same year, it is can be taxed up to the moment of separation.

The taxation of undivided inheritance:

– in Finland who died during the financial year and his inheritance tax as lived all year. But if the inheritance was divided in the same year, it is taxed up to the moment of separation.

– In Sweden undivided inheritance is considered as a legal entity, its equal to a physical person in the case of taxing the state income tax (as well as for people for him a progressive tax scale).

Taxes on inheritance and donation are direct taxes levied by the property, rolling to a new owner in the form of inheritance or gift.

In most states, they act as two separate type of tax, with this much in common in order of their legal regulation. However, in some countries, such as France, Germany, Spain, Sweden, and Italy, the legislation establishes a single tax on inheritance and donation.

The differences in States, as a rule, linked to the data taxation of undivided inheritance:

– in Finland who died during the financial year and his inheritance tax as lived all year. But if the inheritance was divided in the same year, it is taxed up to the moment of separation.

– In Sweden undivided inheritance is considered as a legal entity, its equal to a physical person in the case of taxing the state income tax (as well as for people for him a progressive tax scale).

Taxes on inheritance and gifts are direct taxes levied by the property, rolling to a new owner in the form of inheritance or gift.

In most states, they act as two different type of tax, with this much in common in order of their legal regulation. However, in some countries, such as France, Germany, Spain, Sweden, and Italy, the legislation establishes a single tax on inheritance and donation.

The differences in each State, as a rule, linked to the differences definition of some elements of this tax.

The tax entities are a Individuals and legal entities law divides the heirs to several classes depending on the degree of kinship and sets every class of their tax rates, based on the principle: The less degree, the higher rate of tax.

Legal persons as subjects of the tax, as a rule, in the case of a transition of property to different charitable organizations. In most of the Europe Property, passing in the inheritance of this type of legal persons, or is exempt from taxes on inheritance and gifts, or taxation is carried out on the confessional agreement.

Taxation of property, rolling in the order of inheritance and donations, are mounted on a complex progression deferentially, depending on the class of the heirs. In general, the rates of tax are at the level of 50-70%, but the real tax burden is much lower since the states of a system are incentives.

The most applicable type of tax concessions on taxes on inheritance and gifts are tax deductions. In many countries, the rule applies non-taxable least, according to which the share of heirs in a straight line or the spouse is not taxed, if not exceeds a certain law of the value of the property. definition of some elements of this tax.