Taxation of inheritances and parental gifts in Greece

The taxation of inheritances, gifts, and parental transfers is governed by Law 2961/2001, in its currently applicable, repeatedly reformed version. Inheritance and gift tax returns must be filed electronically via the AADE’s myPROPERTY platform; the deadline is six months from the date of death or the opening of the will (twelve months for persons resident abroad).

The Three Tax Categories

• Category A: spouse/registered partner, first-order descendants (children), second-order blood descendants (grandchildren), first-order blood ancestors (parents). Adopted children are treated the same as biological children.
• Category B: great-grandchildren, grandparents, siblings (including half-siblings), nieces/nephews, stepparents, stepchildren, parents-in-law.
• Category C: all other, unrelated persons.

Inheritance Tax Rates

• Category A: 0% up to €150,000; 1% from €150,000 to €300,000 (cumulative tax at €300,000: €1,500); 5% from €300,000 to €600,000 (cumulative €16,500); 10% beyond that. Special rule: if the deceased leaves a spouse (after at least 5 years of marriage or with joint children) or minor children, their allowance increases to €400,000.
• Category B: 0% up to €30,000; 5% from €30,000 to €100,000 (cumulative €3,500); 10% from €100,000 to €300,000 (cumulative €23,500); 20% beyond that.
• Category C: 0% up to €6,000; 20% from €6,000 to €72,000 (cumulative €13,200); 30% from €72,000 to €267,000 (cumulative €71,700); 40% beyond that.

To calculate the tax on real estate, the “objective value” (antikimeniki axia) is used, which is set nationwide in zones by the Ministry of Finance and updated regularly.

Calculation Examples

• Example 1: Deceased A leaves his adult daughter B an apartment with an objective value of €200,000 and his sister C an apartment worth €80,000. Daughter B (Category A) pays a rate of 1% on the €50,000 exceeding €150,000, i.e. €500. Sister C (Category B) pays a rate of 5% on the €50,000 exceeding €30,000, i.e. €2,500.

• Example 2: Deceased A leaves his partner B, with whom he had no registered partnership (Category C), real estate worth €200,000. The first €6,000 is tax-free, the next €66,000 is taxed at 20% (€13,200), and the remaining €128,000 at 30% (€38,400); B pays a total of €51,600 in inheritance tax.

Earlier special rules on the flat-rate taxation of shares have been abolished: inherited shares, bonds, company interests, and bank balances are now included in the estate at their value and taxed according to the regular tables (A, B, C).

Gifts and Parental Transfers (New Rules Since 2021)

For gifts and parental transfers to persons in Category A, a tax-free allowance of €800,000 per donor and recipient has applied since 1 October 2021 – this applies to real estate, shares, and also cash gifts, provided the amount is demonstrably transferred via bank accounts. Amounts exceeding this are taxed at a flat rate of 10%. Cash gifts to persons in Category B are taxed at a flat rate of 20% from the first euro, and to persons in Category C at 40%.