By Daniel Mercer 
Inheritance Tax in Greece: Rates, Exemptions, and Strategies for Estate Planning
Reading time: 15 minutes
Table of Contents
- Introduction to Greek Inheritance Tax
- Understanding Greek Inheritance Tax Rates
- Exemptions and Deductions
- Calculation of Inheritance Tax
- Filing Requirements and Deadlines
- Strategies for Estate Planning in Greece
- International Aspects of Greek Inheritance Tax
- Recent Changes and Future Outlook
- Conclusion
- FAQs
1. Introduction to Greek Inheritance Tax
Inheritance tax, known as “Φόρος Κληρονομιάς” (Foros Klironomias) in Greek, is a crucial aspect of estate planning and wealth transfer in Greece. As property ownership in Greece continues to attract both domestic and international investors, understanding the intricacies of the Greek inheritance tax system becomes increasingly important. Whether you’re a Greek citizen, an expatriate living in Greece, or considering investing in greek property for sale, this comprehensive guide will provide you with the essential knowledge to navigate the complexities of Greek inheritance tax.
The Greek inheritance tax system has undergone several reforms in recent years, aiming to simplify the process and align with international standards. These changes have significantly impacted how estates are valued, taxed, and transferred to beneficiaries. In this article, we’ll delve deep into the current state of Greek inheritance tax, exploring rates, exemptions, calculation methods, and strategies for effective estate planning.
2. Understanding Greek Inheritance Tax Rates
Greek inheritance tax rates are progressive and depend on the relationship between the deceased and the beneficiary, as well as the value of the inherited assets. The tax system categorizes beneficiaries into three distinct groups:
2.1 Category A: Close Relatives
This category includes spouses, children, grandchildren, and parents. The tax rates for Category A beneficiaries are as follows:
- Up to €150,000: 0%
- €150,001 to €300,000: 1%
- €300,001 to €600,000: 5%
- Over €600,000: 10%
2.2 Category B: Other Relatives
This category includes siblings, aunts, uncles, nieces, nephews, and grandparents. The tax rates for Category B beneficiaries are:
- Up to €30,000: 0%
- €30,001 to €100,000: 5%
- €100,001 to €300,000: 10%
- Over €300,000: 20%
2.3 Category C: Other Beneficiaries
This category includes all other beneficiaries not falling into Categories A or B. The tax rates for Category C beneficiaries are:
- Up to €6,000: 0%
- €6,001 to €72,000: 20%
- €72,001 to €267,000: 30%
- Over €267,000: 40%
It’s important to note that these rates are applied progressively, meaning that different portions of the inheritance are taxed at different rates as the value increases.
3. Exemptions and Deductions
The Greek inheritance tax system provides several exemptions and deductions that can significantly reduce the tax burden on beneficiaries. Understanding these can be crucial for effective estate planning:
3.1 Primary Residence Exemption
One of the most significant exemptions is for the primary residence. For Category A beneficiaries, there is a complete exemption for the first €200,000 of the value of the primary residence. An additional €100,000 is exempt if the beneficiary is a minor or has at least four children. This exemption applies only to properties with a total value of up to €500,000.
3.2 Agricultural Land and Businesses
There are special provisions for inherited agricultural land and businesses. For Category A beneficiaries, the first €150,000 of agricultural land value is exempt from inheritance tax. Additionally, if the beneficiary continues to use the land for agricultural purposes for at least 15 years, they may qualify for a reduced tax rate.
3.3 Charitable Donations
Inheritances left to recognized charitable organizations, educational institutions, or religious entities are typically exempt from inheritance tax. This provision encourages philanthropic bequests and can be an effective tool for reducing the overall tax burden on an estate.
3.4 Disability Exemptions
Beneficiaries with certain disabilities may qualify for additional exemptions. The exact amount depends on the nature and severity of the disability, as defined by Greek law.
4. Calculation of Inheritance Tax
Calculating Greek inheritance tax can be complex, involving multiple factors such as the value of the estate, the relationship between the deceased and the beneficiary, and applicable exemptions. Here’s a step-by-step guide to understanding the calculation process:
4.1 Valuation of Assets
The first step is to determine the total value of the inherited assets. This includes:
- Real estate (based on objective values set by the Greek tax authorities)
- Bank accounts and cash
- Stocks, bonds, and other financial instruments
- Personal property (jewelry, artwork, vehicles, etc.)
- Business interests
4.2 Application of Exemptions
Once the total value is determined, applicable exemptions are subtracted. This includes the primary residence exemption, agricultural land exemptions, and any other relevant deductions based on the beneficiary’s circumstances.
4.3 Determination of Tax Bracket
The remaining value is then used to determine which tax bracket(s) apply, based on the beneficiary’s category (A, B, or C) as outlined in section 2.
4.4 Progressive Calculation
The tax is calculated progressively, meaning different portions of the inheritance are taxed at different rates. For example, if a Category A beneficiary inherits €700,000 after exemptions:
- The first €150,000 is taxed at 0%
- The next €150,000 (€150,001 to €300,000) is taxed at 1%
- The next €300,000 (€300,001 to €600,000) is taxed at 5%
- The final €100,000 (over €600,000) is taxed at 10%
5. Filing Requirements and Deadlines
Navigating the administrative aspects of Greek inheritance tax is crucial to avoid penalties and ensure a smooth transfer of assets. Here are the key filing requirements and deadlines to be aware of:
5.1 Declaration of Inheritance
Beneficiaries are required to file a declaration of inheritance with the Greek tax authorities. This must be done within:
- 6 months of the date of death if the deceased was a resident of Greece
- 12 months of the date of death if the deceased was not a resident of Greece
5.2 Required Documentation
The declaration must be accompanied by various documents, including:
- Death certificate of the deceased
- Will (if applicable)
- Detailed inventory of assets and their values
- Proof of relationship to the deceased
- Tax registration numbers of all beneficiaries
5.3 Payment of Tax
Once the tax authorities assess the declaration and calculate the tax due, beneficiaries have several options for payment:
- Full payment within 30 days of assessment for a 5% discount
- Payment in 12 monthly installments without interest
- Payment in up to 24 monthly installments with interest (for larger inheritances)
6. Strategies for Estate Planning in Greece
Effective estate planning can significantly reduce the inheritance tax burden and ensure a smoother transfer of assets. Here are some strategies to consider:
6.1 Lifetime Gifts
Making gifts during one’s lifetime can be an effective way to reduce the size of the taxable estate. In Greece, lifetime gifts are subject to gift tax, which has similar rates to inheritance tax but can offer advantages in terms of timing and valuation.
6.2 Trusts and Foundations
While not as common in Greece as in some other jurisdictions, trusts and foundations can be useful tools for estate planning, especially for high-net-worth individuals with international assets.
6.3 Business Succession Planning
For family-owned businesses, careful succession planning can help minimize inheritance tax and ensure the continuity of the business. This may involve gradual transfers of ownership or restructuring the business to take advantage of available exemptions.
6.4 Real Estate Strategies
Given the significance of real estate in many Greek estates, strategies such as joint ownership or the use of usufruct rights can be effective in reducing inheritance tax exposure.
7. International Aspects of Greek Inheritance Tax
In an increasingly globalized world, many individuals have assets in multiple countries or beneficiaries residing abroad. Understanding the international aspects of Greek inheritance tax is crucial in these cases:
7.1 Double Taxation Treaties
Greece has double taxation treaties with several countries, which can help prevent the same assets from being taxed twice. It’s important to check if such a treaty exists between Greece and the country where other assets or beneficiaries are located.
7.2 Foreign Assets
Greek residents are generally subject to inheritance tax on their worldwide assets. Non-residents are only taxed on assets located in Greece. This can create complex situations for individuals with international estates.
7.3 Currency Considerations
When dealing with assets in foreign currencies, the exchange rate on the date of death is typically used for valuation purposes. This can have significant implications for tax calculations.
8. Recent Changes and Future Outlook
The Greek inheritance tax system has undergone several changes in recent years, and it’s important to stay informed about potential future developments:
8.1 Recent Reforms
Recent reforms have aimed to simplify the inheritance tax system and align it more closely with international standards. This has included adjustments to tax rates and exemptions, as well as streamlining administrative procedures.
8.2 Digitalization Efforts
The Greek tax authorities are increasingly moving towards digital systems for filing declarations and processing inheritance tax. This trend is expected to continue, potentially making the process more efficient for beneficiaries.
8.3 Potential Future Changes
Given the ongoing economic challenges in Greece, there is always the possibility of further changes to the inheritance tax system. This could include adjustments to rates, exemptions, or the introduction of new provisions to encourage certain types of bequests or investments.
9. Conclusion
Navigating the Greek inheritance tax system requires a thorough understanding of its complexities and nuances. From progressive tax rates based on beneficiary categories to various exemptions and strategic planning opportunities, there are many factors to consider when approaching estate planning in Greece.
For individuals with significant assets in Greece, whether citizens, residents, or foreign investors, professional advice is often crucial. The interplay between Greek inheritance tax laws, international tax treaties, and personal circumstances can create unique situations that require tailored strategies.
As Greece continues to evolve its tax system and attract international investment, staying informed about changes in inheritance tax regulations is essential. By understanding the current landscape and planning ahead, individuals can ensure a more efficient transfer of wealth to their beneficiaries while complying with Greek tax laws.
Whether you’re considering purchasing greek property for sale or already have significant assets in the country, incorporating inheritance tax considerations into your overall financial planning can provide peace of mind and potentially significant tax savings for your heirs.
10. FAQs
Q1: Can inheritance tax in Greece be paid in installments?
A1: Yes, inheritance tax in Greece can be paid in installments. Beneficiaries have the option to pay the tax in full within 30 days of assessment for a 5% discount, in 12 monthly installments without interest, or in up to 24 monthly installments with interest for larger inheritances.
Q2: Are foreign bank accounts subject to Greek inheritance tax?
A2: For Greek residents, foreign bank accounts are generally subject to Greek inheritance tax as part of their worldwide assets. For non-residents, only assets located in Greece are taxable. However, double taxation treaties may affect how these assets are taxed.
Q3: How is real estate valued for Greek inheritance tax purposes?
A3: Real estate in Greece is typically valued based on “objective values” set by the Greek tax authorities. These values are often lower than market values and are updated periodically. It’s important to note that for high-value properties, the tax authorities may conduct their own valuation.
Q4: Can charitable donations reduce inheritance tax in Greece?
A4: Yes, inheritances left to recognized charitable organizations, educational institutions, or religious entities are typically exempt from inheritance tax in Greece. This can be an effective way to reduce the overall tax burden on an estate while supporting worthy causes.
Q5: How does Greek inheritance tax apply to non-resident beneficiaries?
A5: Non-resident beneficiaries are subject to Greek inheritance tax on assets located in Greece, regardless of their place of residence. The same tax rates and categories apply, but there may be additional complexity in terms of filing requirements and potential double taxation issues, depending on the beneficiary’s country of residence.
Article reviewed by Anna Mayer, Residential Property Investment Advisor | Luxury Market Specialist, on March 24, 2025