As part of the effort to inform citizens regarding matters concerning the applicable tax regime, the Independent Authority for Public Revenue (AADE) has issued a detailed guide of questions and answers concerning the taxation of inheritances, donations and parental gifts.
1. On which legislative framework is the taxation of inheritances based?
On the Code of Provisions on the Taxation of Inheritances, Donations, Parental Gifts, Dowries and Gambling Winnings, ratified by the first article of Law 2961/2001 (Government Gazette A’ 266), and on the Code of Tax Procedure, Law 4174/2013 (Government Gazette A’ 170), as in force.
2. On which assets is inheritance tax imposed?
Inheritance tax is imposed on any property located in Greece and belonging to Greek nationals or foreigners, as well as on movable property located abroad and belonging to a Greek or to a foreign national who had his/her residence in Greece.
3. Who is obliged to file the inheritance tax return?
The heir or the legatee or his/her legal representative.
4. What is the deadline for filing the inheritance tax return?
The inheritance tax return is filed within six (6) months from the death, if the decedent died in Greece, or within one (1) year, if the decedent died abroad or if the heirs or legatees were residing abroad at the time of death.
The deadline runs, as a rule, from:
– the death of the decedent,
– the publication of the will, or
– the publication in the press of the court ruling declaring presumed death (afaneia), or
– the death of the person obliged to file the return, where that person did not file one, or
– the conclusion of litigation, the merger of the usufruct with the bare ownership, the compulsory expropriation, the collection of intellectual property rights, etc.
5. Can the deadline for filing the inheritance tax return be extended?
The deadline may be extended for up to three (3) months, by decision of the head of the competent tax office (DOY). The application for an extension may be filed even after the deadline has expired, provided it is filed within the three-month period that follows.
6. Which supporting documents are required when filing the inheritance tax return?
a) Death certificate
b) Copy of the will
c) Certificate of inheritance or certificate from the competent municipal or community authority concerning the type and degree of kinship to the decedent
d) Certificate from the Clerk of the Magistrate’s Court attesting that no later will has been published or, in the case of intestate succession, that no will has been published
e) Certificate of the age of the usufructuary, where the age is taken into account for the determination of value
f) Document of authorisation, in the case of a power of attorney
g) Documents proving the postponement of the time of accrual of the tax obligation
h) Evidence of debts of the estate.
7. Where is the inheritance tax return filed?
The inheritance tax return is filed at the tax office (DOY) under whose territorial jurisdiction the last address of residence of the decedent falls, as declared in his/her tax registry.
If the decedent resided abroad, the return is filed at the Tax Office for Residents Abroad.
If the decedent had his/her residence abroad but died in Greece, the return is filed at the tax office of the place of death.
For significant reasons, another tax office (DOY) may be designated as competent, by decision of the Governor of the Independent Authority for Public Revenue (AADE), upon application by all the heirs.
8. When is donation/parental gift tax imposed?
Donation or parental gift tax is imposed where an asset is donated or transferred by way of parental gift to a natural or legal person.
9. On which assets is donation/parental gift tax imposed?
On assets of any kind located in Greece, as well as on movable assets located abroad and belonging to a Greek or to a foreigner who has his/her residence in Greece.
10. Who must file the donation/parental gift tax return?
Where a notarial deed is drawn up, the return must be filed by both contracting parties, whereas, in the case of an informal donation, only by the donee.
11. Where is the donation/parental gift tax return filed?
The return is filed at the tax office (DOY) under whose territorial jurisdiction the residence of the donor or of the parent falls. If the donor or the parent resides abroad, the competent office is the Tax Office for Residents Abroad.
For significant reasons, another tax office may be designated as competent, by decision of the Governor of AADE, upon application by all liable persons.
12. Where is the tax return filed for monetary donations to non-profit legal entities?
For monetary donations to non-profit legal entities, the competent tax office is the one under whose territorial jurisdiction the registered seat of the legal entity is located.
13. What is the deadline for filing the donation/parental gift tax return?
Where a notarial deed is drawn up for the donation or parental gift, the return is filed before the deed is concluded. Where no deed is drawn up, the return is filed within six (6) months from the delivery of the object of the donation or parental gift. In that case, the deadline may be extended for three (3) months.
14. What are the conditions for exemption of the primary residence from inheritance tax?
a) The heir is the spouse or the person with whom the decedent had entered into a cohabitation agreement under Law 3719/2008 (Government Gazette A’ 241) (provided the cohabitation lasted at least two years) or Law 4356/2015 (Government Gazette A’ 181), or a child of the decedent.
b) The heir is a Greek citizen or a citizen of a Member State of the European Union or of the countries of the European Economic Area (EEA).
c) The heir, his/her spouse and their minor children do not have a right of full ownership, usufruct or habitation in another residence or an ideal share of a residence that meets the family’s housing needs, nor a right of full ownership over a buildable plot or an ideal share of a plot, where the corresponding building area meets their housing needs and which are situated in a municipality or community with a population exceeding 3,000 inhabitants. Housing needs are deemed to be met if the total surface area of the above properties (and of any other corresponding inherited properties) is 70 sq.m., increased by 20 sq.m. for each of the first two children and by 25 sq.m. for the third and each subsequent child of the beneficiary.
d) The property is acquired in full ownership.
e) The exemption from tax for the acquisition of a primary residence is granted only once. An heir who, or whose spouse or minor children, has already received an exemption from transfer, parental gift or inheritance tax is not entitled to the exemption.
f) The residence or plot must remain in the ownership of the heir for at least five years.
g) The application for exemption is submitted with a timely tax return.
15. What are the conditions for exemption of the primary residence from parental gift tax?
a) The child seeking the exemption, his/her spouse and their minor children do not have a right of full ownership, usufruct or habitation in another residence or an ideal share of a residence that meets the family’s housing needs, nor a right of full ownership over a buildable plot or an ideal share of a plot, where the corresponding building area meets their housing needs and which are situated in a municipality or community with a population exceeding 3,000 inhabitants. Housing needs are deemed to be met if the total surface area of the above properties is 70 sq.m., increased by 20 sq.m. for each of the first two children and by 25 sq.m. for the third and each subsequent child of the beneficiary.
b) The child is a Greek citizen or a citizen of a Member State of the European Union or of the countries of the European Economic Area (EEA).
c) The property is acquired in full ownership and in its entirety.
d) The exemption from tax for the acquisition of a primary residence is granted only once. A child who, or whose spouse or minor children, has already received an exemption from transfer, parental gift or inheritance tax is not entitled to the exemption.
e) The residence or plot must remain in the ownership of the child for at least five years.
f) The application for exemption is submitted with a timely tax return.
16. What are the tax-free thresholds for the acquisition of a primary residence by inheritance or parental gift?
The exemption is granted for residence value up to €200,000 for each minor or unmarried person and up to €250,000 for a married person, increased by €25,000 for each of the first two children and by €30,000 for the third and each subsequent minor child of whom the beneficiary has custody. The exemption amount also includes the value of one parking space and one storage area, of up to 20 sq.m. each, provided they are located in the same property and acquired simultaneously. An exemption is also granted for a plot of land valued up to €50,000 for each minor or unmarried person and up to €100,000 for each married person, increased by €10,000 for each of the first two children and by €15,000 for the third and each subsequent child. The above amounts apply to the acquisition of a primary residence by inheritance and by parental gift. In particular, the increase for minor children, with regard to inheritance tax, applies provided that only one residence or only one plot devolves to the heir in its entirety and in full ownership, and not as an undivided share.
17. Is a deposit in a joint bank account taxed?
The amount of a monetary deposit in a joint account under Law 5638/1932 (Government Gazette A’ 307) is exempt from inheritance tax (but not from donation or parental gift tax), provided that the condition has been included that, on the death of any of the holders, the deposit automatically passes to the surviving holders, down to the last of them.
18. Are there exemptions for agricultural or livestock land from inheritance, donation and parental gift tax?
As of 23 April 2010, the agricultural exemptions have been abolished.
19. In how many instalments is the inheritance, donation and parental gift tax paid?
a) The tax arising from an initial or timely amending return is payable in 12 equal bi-monthly instalments, none of which may be less than €500, except for the last.
In the case of inheritance, if the heir is a minor, the number of instalments is doubled, provided that each instalment is no less than €500, except for the last.
b) Following the filing of a late amending return or after a tax audit, the tax is paid within 30 days from the notification of the corrective assessment act.
c) Where a final ruling of an administrative court is issued, the tax is paid in two equal monthly instalments.
d) In the case of a donation or parental gift of monetary amounts, the tax is paid immediately [within three (3) days from the filing of the return].
20. What is the time of taxation in inheritances?
As a rule, the time of taxation is the time of death. The time of taxation is postponed to a point after the death automatically (in the cases provided for by law, e.g. condition precedent, litigation regarding the inheritance right, separation of usufruct and bare ownership, etc.) or by decision of the head of the competent tax office (DOY) in specific cases upon application by the heirs.
In such cases, an initial return is filed together with the supporting documents for the postponement of taxation, and, after the accrual of the tax obligation, a new return is filed.
21. When does the State’s right to impose inheritance, donation or parental gift tax become time-barred?
For cases in which the tax obligation arose before 1 January 2015, the State’s right to audit the case becomes time-barred after the lapse of ten (10) years, where a return has been filed, or fifteen (15) years, where no return was filed.
For cases in which the tax obligation arose on or after 1 January 2015, the State’s right is time-barred, as a rule, within five (5) years from the end of the year in which the deadline for filing the return expires.
Notwithstanding the above, the State’s right is time-barred in respect of all cases for which the tax obligation arose up to 31 December 1994.
22. How is inheritance, donation and parental gift tax calculated?
Taxpayers are classified, depending on their kinship to the decedent or the donor, into three (3) categories, for each of which different tax scales apply with different tax-free thresholds and rates.
Category A includes: a) the spouse or the person with whom the decedent or the donor had entered into a cohabitation agreement under Law 3719/2008 (provided the cohabitation lasted at least two years) or Law 4356/2015, b) the children, c) the grandchildren, and d) the parents of the decedent or the donor.
Category B includes: a) blood descendants of the third and subsequent degrees (great-grandchildren, etc.), b) blood ascendants of the second and subsequent degrees (grandparents, great-grandparents, etc.), c) children acknowledged voluntarily or by court ruling, vis-à-vis the ascendants of the father who acknowledged them, d) descendants of the acknowledged child, vis-à-vis the acknowledging father and his ascendants, e) siblings (whether of full or half blood), f) blood relatives of the third degree on the collateral line (nephews and nieces of the decedent or the donor), g) stepfathers and stepmothers, h) children from a previous marriage of the spouse, i) children-in-law (sons-in-law and daughters-in-law), and j) ascendants by affinity (fathers-in-law and mothers-in-law) of the decedent or the donor.
Category C includes any other relative by blood or affinity or any unrelated person to the decedent or the donor.
23. What are the applicable tax scales?
CATEGORY A
| Bracket (in euros) | Bracket rate (%) | Bracket tax (in euros) | Taxable property (in euros) | Corresponding tax (in euros) |
| 150,000 | — | — | 150,000 | — |
| 150,000 | 1 | 1,500 | 300,000 | 1,500 |
| 300,000 | 5 | 15,000 | 600,000 | 16,500 |
| Excess | 10 |
CATEGORY B
| Bracket (in euros) | Bracket rate (%) | Bracket tax (in euros) | Taxable property (in euros) | Corresponding tax (in euros) |
| 30,000 | — | — | 30,000 | — |
| 70,000 | 5 | 3,500 | 100,000 | 3,500 |
| 200,000 | 10 | 20,000 | 300,000 | 23,500 |
| Excess | 20 |
CATEGORY C
| Bracket (in euros) | Bracket rate (%) | Bracket tax (in euros) | Taxable property (in euros) | Corresponding tax (in euros) |
| 6,000 | — | — | 6,000 | — |
| 66,000 | 20 | 13,200 | 72,000 | 13,200 |
| 195,000 | 30 | 58,500 | 267,000 | 71,700 |
| Excess | 40 |
24. Is there a tax-exempt amount where the heir is the spouse, the person with whom the decedent had entered into a cohabitation agreement, or a minor child?
From 26 January 2010, where the heir is the spouse or a minor child of the decedent, an exemption from inheritance tax applies for an estate value of up to €400,000 per heir (with a corresponding adjustment of the brackets for the calculation of Category A tax). The exemption also applies where the heir is a person with whom the decedent had entered into a cohabitation agreement under Law 4356/2015 (with no time-limit requirement) and which was dissolved by his/her death.
25. How are donations or parental gifts of monetary amounts taxed?
The parental gift of monetary amounts is taxed independently at a rate of ten per cent (10%), whereas the donation of monetary amounts is taxed independently at a rate of ten per cent (10%) for donees falling within Category A, twenty per cent (20%) for donees falling within Category B, and forty per cent (40%) for donees falling within Category C.
Competent service of the General Directorate of Tax Procedures of AADE: Directorate for the Application of Capital and Property Taxation
Contact telephone for clarifications: 210 3375872, 210 3375878.
- See also article Certificate of Inheritance
- See also article Renunciation of Inheritance by a Minor
- See also article Contesting a Will
- See also article Death of a Bank Depositor
- See also article Forced Heirship
- See also article Classes of Intestate Succession
- See also article Kinship
- See also article Power of Attorney from Abroad
FREQUENTLY ASKED QUESTIONS ON THE TAXATION OF INHERITANCES, DONATIONS AND PARENTAL GIFTS
1. How much tax will I pay on an inheritance from a parent?
Where the heir is a spouse, child, grandchild or parent, he/she falls within Category A, which has the most favourable regime. For a spouse and minor children, a tax-free threshold of €400,000 per heir applies. For adult children and other Category A relatives, the tax-free threshold is €150,000, and beyond that the tax starts at 1% and is graduated up to 10% for amounts exceeding €600,000. In the case of a primary residence, a full exemption may apply for a value of up to €200,000 (unmarried person) or €250,000 (married person), with increases for children. The actual amount depends on the composition of the estate, the kinship relationship and the exemptions that may be claimed.
2. What can I do if I miss the filing deadline?
The inheritance tax return is filed within nine months of death (one year if the decedent or the heirs were abroad). If the deadline is approaching, an extension of up to three months may be granted by decision of the head of the tax office (DOY), and the application may be filed even within the three-month period following the expiry of the deadline. In the event of late filing, fines and interest are imposed and the right to pay in 12 bi-monthly instalments is forfeited. Where matters remain pending, such as the search for a will, the identification of assets or renunciations by other heirs, the lawyer assesses whether postponement of the time of taxation, or the filing of an initial return with reservations followed by a supplementary return, would be appropriate.
3. In how many instalments may I pay the tax?
The tax arising from a timely initial or amending return is paid in 12 equal bi-monthly instalments, none of which may be less than €500, except for the last. Where the heir is a minor, the number of instalments is doubled to 24. By contrast, the tax for a donation or parental gift of monetary amounts is paid immediately, within three days of the filing of the return. In the case of a late amending return or following a tax audit, payment is made within 30 days of the notification of the corrective assessment act, in which case the right to payment in instalments is forfeited.
4. Which documents do I need for the inheritance tax return?
The following are gathered: the death certificate, a copy of the will (if any), a certificate of inheritance or kinship certificate, a certificate confirming that no later or other will has been published, a certificate of the age of the usufructuary where required, a document of authorisation in the case of a power of attorney, as well as evidence of deductible debts of the estate. For real property, deeds of title, calculation sheets of the objective value and topographical diagrams are required. For movable assets, bank statements certifying account balances at the time of death are needed. Proper preparation of the file ensures correct calculation and prevents subsequent surcharges by the tax authority.
5. How can I challenge a tax I consider excessive?
Where a corrective assessment act is issued increasing the liability beyond the return, an administrative appeal may be lodged with the Dispute Resolution Directorate of AADE within 30 days of notification. If the Dispute Resolution Directorate rejects the appeal or remains silent, a petition is filed before the Administrative Court of First Instance within 30 days, with the option of an application for suspension of enforcement to prevent collection measures from proceeding. Common grounds for challenge include erroneous objective value, non-recognition of estate debts, refusal to grant the primary residence exemption and incorrect classification into a tax category.
6. What is the lawyer’s role in an inheritance tax case?
The firm undertakes the preparation and filing of the return in cooperation with the accountant, the selection of the optimal time of taxation, the filing of applications for extension or postponement of the tax obligation, and the pursuit of exemptions for the primary residence or for monetary deposits. Where there are several heirs, the firm coordinates renunciations and acceptances so that the remaining heirs are not further burdened. Where an assessment act is issued, the firm files an administrative appeal with the Dispute Resolution Directorate and, if necessary, a petition before the Administrative Court of First Instance with an application for suspension. The aim is for the client to pay the lawful tax, while making the fullest possible use of all reduction options provided by law.