Inheritance tax in Greece
In Greece inheritance tax is levied on acquisitions due to death and gift tax is levied on unpaid gifts between the living.
Legal basis
Inheritance and gift tax is levied on inheritance since 2003 on the basis of Law 2961/2001. After an initial reform in 2006, another followed in 2008 and finally a final major reform in 2010 through Law 3815/2010 and further changes through Law 3842/2010. Exemptions and tax brackets have been adjusted, the independent taxation of sums of money has been abandoned, and the differentiation of the tax rate according to the type of asset that has meanwhile been introduced has been abandoned. As before, there are special discounts for spouses and minor children. Each of these is subject to an exemption of EUR 400,000, which can be used instead of the regular category A exemption. The need for housing will also continue to be protected.
Scope of tax liability
The inheritance and gift tax is levied in the form of inheritance tax, the tax object is the acquisition made by the heir or the donee. The entire acquisition is taxable for tax residents, even if the estate is abroad. For tax non-residents (non-residents), the tax liability only extends to assets located in Greece. Changes to the land register with regard to the acquisition of land are only entered upon presentation of a certificate from the tax office stating that the tax liability has been met.
Tax brackets
The acquirers are divided into three tax brackets:
- Tax class A : surviving spouse, children, illegitimate children of the mother, grandchildren, parents, first-degree ancestors
- Tax class B : Second or higher parents, great-grandchildren, illegitimate children of the father, siblings, nephews and nieces, children of previous marriages, stepmother or stepfather, children-in-law and in-laws
- Tax class C : other relatives and third parties
Tax rates and allowances
The acquisitions are subject to different tax rates, which are no longer based on the type of assets as in the past, but on the relationship (categories A to C) and the value of the taxable value.
- Category A (spouses, children, etc.): 150,000 euros are tax-free, values in excess of this amount are taxed as follows:
| Category A | Tax bracket (in €) | Tax rate (in%) | attributable to the level
Tax (in €) |
taxable
Assets (in €) |
appropriate
Total tax (in €) |
|---|---|---|---|---|---|
| 150,000 | - | - | 150,000 | - | |
| 150,000 | 1 | 1,500 | 300,000 | 1,500 | |
| 300,000 | 5 | 15,000 | 600,000 | 16,500 | |
| Furthermore | 1 |
- Category B (great-grandchildren, grandparents, etc.): 30,000 euros are tax-free, in addition:
| Category B | Tax bracket (in €) | Tax rate (in%) | attributable to the level
Tax (in €) |
taxable
Assets (in €) |
appropriate
Total tax (in €) |
|---|---|---|---|---|---|
| 30,000 | - | - | 30,000 | - | |
| 70,000 | 5 | 3,500 | 100,000 | 3,500 | |
| 200,000 | 10 | 20,000 | 300,000 | 23,500 | |
| Furthermore | 20th |
- Category C (all other relatives and third parties): 6,000 euros are tax-free, in addition:
| Category C | Tax bracket (in €) | Tax rate (in%) | attributable to the level
Tax (in €) |
taxable
Assets (in €) |
appropriate
Total tax (in €) |
|---|---|---|---|---|---|
| 6,000 | 0 | 0 | 6,000 | 0 | |
| 66,000 | 20th | 13,200 | 72,000 | 13,200 | |
| 195,000 | 30th | 58,500 | 267,000 | 71,700 | |
| about that | 40 |
Favoring real estate
If the surviving spouse or child inherits a property or building land and the purchaser or his minor children are not yet the owners (or other real beneficiaries) of their own residential property or a suitable building plot, the acquisition can be entirely exempt from inheritance tax. The need for housing is considered to be met if a property with a size of at least 70 m² is available. The need for housing increases by 20 m² for each of the first two children of the purchaser with custody, and by 25 m² for the third and each subsequent child. Beneficiaries of the exemption can be Greek citizens and citizens of the European Economic Area. The property must also be held for at least five years.
Distribution of the volume
The state is entitled to the tax revenue, but it includes other statutory taxes in favor of cities and municipalities as well as in favor of the prefectural road construction funds.
rating
In principle, the market value is decisive, but the tax value for land. This is determined and set by the tax authorities based on the usual prices. In recent years, a large-scale revaluation of real estate has been carried out in Greece, which in some cases has led to drastic increases in the traditionally very low tax values. All encumbrances existing at the time of death are deducted from the estate value, including certain estate costs such as funeral costs.
Procedure
An inheritance tax return must be submitted within six months of the death of the testator. If the heir lives abroad, the deadline is extended by a further six months.
Double taxation
Insofar as the Greek inheritance tax is incurred for parts of the estate that are located abroad and are also taxed there, the foreign tax will be offset against the corresponding Greek tax. In addition, there is a double taxation agreement between Greece and Germany that dates back to 1910 in the area of inheritance tax law, but which only deals with movable estate. According to this, the movable property of a testator who belongs to the other state is only taxed in Greece if the testator or the heir was or has his or her permanent residence there.
outlook
Based on announcements by the government, further measures to reduce inheritance tax are expected in the future, so that the regulations presented here are likely to change again in the future.
See also
- Leaflet from the Embassy of the Federal Republic of Germany Athens on land acquisition in Greece (as of March 14, 2006)
- Inheritance tax in the member states of the European Union and the European Economic Area
literature
- Abraam Kosmidis, Hans Peter Schömmer: International Inheritance Law Greece. C. H. Beck, Munich 2007, ISBN 978-3-406-56396-6 International Inheritance Law Greece
- Troll-Gebel-Jülicher: Inheritance Tax and Gift Tax Act. Loose-leaf commentary, 37th edition 2009, Vahlen, ISBN 978-3-8006-2402-7 , § 21 ErbStG marginal no. 101 (Greece)
- Christos Iliopoulos: Introduction to Changes in Greek Inheritance Tax Legislation in 2008. [2]
- Muchtaris Fassouli: Overview of the Tax Act 3427/2005, which came into force on January 1, 2006, European Academy for Inheritance Law, pages 8–10, PDF
Individual evidence
- ↑ Savelsberg: Inheritance tax in Greece (as of 2019). Accessed June 10, 2019 (German).
- ↑ Government Gazette (Ed.): Law 2961-2001 ( ΦΕΚ) A 266 / 22.11.2001 . November 22, 2001.
- ↑ Inheritance tax in Greece (as of 2019). In: florian savelsberg. Accessed June 10, 2019 (German).
- ^ Inheritance tax in Greece. Accessed June 10, 2019 (German).
- ↑ Inheritance tax, secondary taxes (PDF; 30 kB)
- ↑ Double taxation agreement on inheritance tax between Greece and Germany - florian savelsberg. Accessed June 10, 2019 (German).
- ↑ Christos Iliopoulos: The Inheritance tax in Greece may be completely abolished , [1]
