Taxation of inheritances and parental gifts in Greece

Law 3842/2010, which amended Article 29 of Law no. 2961/2001 on Inheritance Taxation, Donations, Parental Grants, and Winnings from Games of Chance, introduced a significant change affecting the tax burden of high‑value inheritances among close relatives.

Under Article 29(1) of Law 2961/2001, beneficiaries (heirs, legatees, share‑takers, and any persons acquiring assets by inheritance) are classified into three categories. Category A comprises: (a) the decedent’s spouse; (b) first‑order descendants; (c) second‑order blood descendants (grandchildren); and (d) first‑order blood ascendants (parents). Adopted children are treated equally to blood descendants for inheritance tax purposes. Where circumstances indicate that an adoption was effected solely to circumvent the provisions of Law 2961/2001, the competent tax officer may disregard the claimed degree of kinship.

Under Article 29(2), assets acquired through inheritance are taxed under Category A according to the applicable schedule (Table A) :

Where the decedent is survived by a spouse and minor children only , a tax‑free allowance of EUR 400,000 per beneficiary applies. For the spouse, this exemption applies provided that a lawful marriage existed for at least five years prior to the decedent’ s death. Spouses and minor children are also subject to lower tax rates than those set out in the general schedule.

Category B comprises: (a) descendants of the third and subsequent orders; (b) ascendants of the second and subsequent orders; (c) children of the ascendants of the father who were either voluntarily or judicially acknowledged; (d) descendants of the acknowledged child in relation to the acknowledger and his ascendants; (e) siblings (including step‑siblings); (f) collateral descendants of the third order; (g) stepfathers and stepmothers; (h) children of the spouse from previous marriages; and (i) ascendants by affinity (father‑in‑law, mother‑in‑law). Inheritances falling under Category B are taxed according to a separate schedule specific to this category.

Category C comprises all other persons and is taxed according to a separate schedule specific to Category C.

The tax owed is calculated on the basis of the objective (assessed) value of the property. Factors such as location, size, and age are taken into account. Valuation coefficients are regularly updated by the tax authorities.

(As of March 2023. All information provided without guarantee.)