Inheritance tax in Romania
Romania has no inheritance tax or gift tax .
Special income tax
A special income tax of 1% of the market value is levied on inherited real estate if the inheritance procedure (for issuing a certificate of inheritance) is not completed within two years. This period was increased from one year to two years in 2006.
Stamp duty in inheritance proceedings
When conducting inheritance proceedings, a stamp tax ( taxa de timbru ) is levied on the value of the entire Romanian movable and immovable estate. The main residence inhabited by the testator himself before his death is generally only set at half its market value if it was used exclusively by him and his family and was also inhabited by the heir. The estate's debts are deducted, including funeral expenses. From the value determined in this way, a degressive tax rate (which reaches the minimum rate of 0.5% from 10,000 lei , about 2,370 euros) is applied as follows:
| Value group | Tax rate in% |
|---|---|
| up to 1,000 lei | 3 |
| 1.001- 5.000 Lei | 2 |
| 5,001-10,000 lei | 1 |
| over 10,000 lei | 0.5 |
Importance of inheritance proceedings
The formal inheritance procedure ends with the issuance of a certificate of inheritance, which is only issued against payment of stamp duty. However, such a procedure is not automatically associated with the assumption of inheritance. Ownership of the objects of the estate passes to the heirs upon the death of the testator, and the declaration of acceptance of the inheritance that is necessary for the assumption of the inheritance does not require any form. However, for heirs other than descendants and relatives in the ascending line, separate ownership instruction is required, which is evidenced by the certificate of inheritance. A certificate of inheritance is generally also required to provide evidence of the inheritance to authorities, so that it is particularly indispensable when purchasing land. Finally, its issuance proves the termination of the estate proceedings, which avoids the special income tax of 1% of the market value of the property acquired. This means that inheritance proceedings must always be carried out when a certificate of inheritance is required. This is likely to be ruled out if close relatives (spouse, children, grandchildren or parents) inherit and only movable inheritance is available and no evidence is required.
A German certificate of inheritance, which is issued within the scope of a jurisdiction under German law, is generally recognized with regard to movable estate, but not with regard to real estate. A certificate of inheritance issued by a Romanian notary is required here.
Notarial probate proceedings
The inheritance proceedings can theoretically also be carried out in court, but generally take place in front of the locally competent notary (this also for reasons of speeding up the process with regard to the tax period of two years). The notary collects stamp duty (as with other legal transactions) and pays it to the state. He also calculates his fees according to the tax value.
Gift tax
Donations of land must then be taxed as income when the recipient is not married to the donor or more distant than in the third grade used is (going beyond the uncle or aunt).
See also
Individual evidence
- ↑ Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1250 item 75
- ↑ CFE: Inheritance Tax in Romania (English) ( Memento of the original dated November 23, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1251 item 76
- ↑ Based on: CFE: Inheritance Tax in Romania (English) ( Memento of the original from November 23, 2015 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. ; Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Hrsg.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1251 item 76
- ↑ Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1243f.
- ↑ Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Hrsg.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1250 item 73
- ↑ Inheritance in Romania (English)
- ↑ Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1251 item 76
- ↑ Axel Bormann: Inheritance Law in Romania , in: Rembert Süß (Ed.): Inheritance Law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1250f. Item 75
literature
- Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , pages 1229–1251
