With the growing number of foreign residents and property owners in Greece, issues related to inheritance law and inheritance tax often arise in an international context. To ensure the accurate and timely filing of inheritance tax declarations, it is vital to have a clear understanding of the legal and tax framework governing inheritance procedures in Greece.
The following summary οf the main aspects of Greek inheritance tax law is provided for informational purposes only and does not constitute legal or tax advice.
What is Inheritance Tax
Inheritance tax is a levy imposed by the State on the estate of a deceased person, including immovable and movable property, savings, bank deposits, investments, and other assets. While in many countries the inheritance tax is paid by the estate itself before being distributed to the beneficiaries — and some other countries have abolished inheritance tax altogether — in Greece, the legal framework operates differently.
The Legal Framework
In Greece, inheritance tax is governed by national legislation, so the same rules apply across the entire country. Under the Greek legislation, the tax liability falls on each beneficiary individually, rather than on the estate as a whole.
Each heir has a personal tax-free allowance, which depends on their relationship to the deceased. Close relatives such as spouses and children under 18 benefit from significantly higher exemptions.
Tax is imposed only on the amount exceeding this allowance, with rates increasing progressively according to both (a) the value of the inheritance and (b) the beneficiary’s relationship to the deceased (degree of kinship).
When and Where Greek Inheritance Tax Applies
Greek inheritance tax is imposed on:
- All assets located in Greece, regardless of the nationality of the deceased owner.
- Movable assets located abroad, if they belong to a Greek national or a foreign national who was a tax resident of Greece at the time of death.
This means that even non-Greek nationals inheriting property located in Greece may become liable for Greek inheritance tax.
Where a double taxation agreement between Greece and another state is in force, the taxation of foreign movable assets is determined according to the terms of that treaty, which generally aims to prevent the same inheritance from being taxed twice.
Given the complexity of cross-border estates, beneficiaries are strongly advised to seek professional legal advice to determine which country’s laws apply, especially when assets are located in multiple jurisdictions.
Calculation of Inheritance Tax in Greece
In Greece, as mentioned above, inheritance tax is determined by two main factors:
(a) the value of the inherited property at the time of death, and
(b) the degree of kinship between the heir and the deceased.
The payable tax is calculated on the net taxable share of each beneficiary, after deducting any liabilities and the applicable personal tax-free allowance.
Depending on their relationship to the deceased, beneficiaries are classified into three tax categories, each subject to different tax rates and exemptions.
Accordingly, the calculation process generally follows the steps below:
- Determine the taxable estate by deducting any debts or liabilities from the total assets.
- Distribute the net estate among the heirs according to the will or, in its absence, under Greek succession law.
- Subtract the personal allowance applicable to each beneficiary.
- Apply the relevant tax rate based on the beneficiary’s tax category and the value of their inheritance.
Current Inheritance Tax Allowances
In contrast to systems that apply a single flat tax rate, Greece applies graduated tax rates and simultaneously provides different tax-free allowances depending on the relationship between the deceased and the heir.
After deducting the applicable tax-free allowance, inheritance tax is calculated on the remaining taxable value of the inherited assets, according to the heir’s tax category and relationship to the deceased.
Taxable Assets and Exemptions
Under Greek inheritance law, all assets — both immovable and movable — located in Greece are taxable, as well as movable assets abroad owned by Greek nationals or foreign tax residents of Greece.
Foreign beneficiaries may also be exempt from inheritance tax, on the basis of reciprocity or where such exemptions are provided under international treaties concluded by Greece. Currently, Greece has in force four double taxation treaties on inheritance with the United States, Spain, Germany and Italy, which aim to prevent the same inheritance from being taxed twice.
Filing of Inheritance Tax
As of 1st January 2023, the electronic submission of both initial and amended inheritance tax declarations is mandatory through the online platform of the Independent Authority for Public Revenue. Certain exceptions may apply.
Beneficiaries must file their inheritance tax declaration within the following time limits:
– 9 months from the date of death or from the publication of the will, if the deceased passed away in Greece, or
– 12 months from the date of death or from the publication of the will, if the deceased passed away abroad.
Failure to submit the declaration within these deadlines may result in an administrative fine of €100 for each beneficiary.
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For further information or legal assistance, please do not hesitate to contact our qualified legal team at info@zkklaw.gr or by phone at +30 210 3628040.
Our lawyers will be pleased to provide tailored advice and additional information based on your specific needs and circumstances.
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