Law no. 3815/2010, which amended Art. 29 of Law no. 2961/2001, introduced changes regarding the taxation of high‑value inheritances among close relatives. Further reforms concerning income taxation and taxation of immovable property have also been announced.
Under Article 29(1) of Law no. 2961/2001, beneficiaries (heirs, legatees, share‑takers and other persons acquiring by inheritance) are classified into three categories.
Category A comprises the spouse, descendants of the first order, blood relatives of the second order (grandchildren) and blood relatives of the first order (parents). Adopted children are treated equally to blood descendants for inheritance tax purposes; however, sham adoptions may be disregarded by the tax authorities .
Assets acquired by inheritance in Category A are taxed according to the applicable schedule (Table A). If only the spouse and minor children survive, each beneficiary is entitled to an allowance of EUR 400,000 (provided the spouse has been lawfully married for at least five years). Spouses and minors are taxed at lower rates than those applicable under the general schedule.
Category B comprises descendants of the third and subsequent orders; ascendants of the second and subsequent orders; voluntarily or judicially acknowledged children of the father’s ascendants; descendants of acknowledged children in relation to the acknowledger and his ascendants; siblings (including step‑siblings); third‑order collateral descendants; step‑parents; children of the spouse from previous marriages; in‑law ascendants.
Category C comprises all other persons. Each category is subject to its own tax schedule.
To calculate the imposed tax, the objective (assessed) value of the property is used, considering factors such as location, size, and age, based on valuation coefficients updated by the tax authorities.
Cash and securities; special rates
Cash amounts acquired by inheritance are subject to separate taxation: 10% for Category A, 20% for Category B. For estates including listed shares, other listed securities, bonds, government bonds, or similar instruments, taxation is applied on the aggregate value at rates of 0.6% for Category A and 1.2% for Category B. Unlisted shares, securities, and profit participations are taxed at 1.2% for Category A and 2.4% for Category B.
For gifts and parental gifts, Art. 44 of Law 2961/2001 applies mutatis mutandis. Gifts made previously are exempt; gifts of movable property transferred abroad are also exempt. Cash received by gift/parental gift is taxed separately: 10% (Category A), 20% (Category B), 40% (Category C).
(As of April 2010. All information provided without guarantee.)