Inheritance Tax in Greece

Inheriting Real Estate in Greece: A General Guide

When someone who owns property in Greece passes away, the inheritance process is governed by Greek law, with specific procedures and rules to be followed. This process may vary slightly depending on whether the deceased was Greek or non-Greek, and whether they resided in Greece or abroad.

While the law of the nationality of the deceased generally governs the inheritance process, when it comes to real estate in Greece, Greek law applies regardless of the nationality of the deceased. This means that the inheritance of property located in Greece is always subject to Greek law, regardless of the nationality of the deceased, and Greek citizens living abroad are still subject to Greek inheritance law for property located in Greece.

Heirs are also subject to inheritance tax in Greece, which is calculated based on their relationship to the deceased and the value of the inherited property.

Inheritance Tax in Greece in 2024

Inheritance tax in Greece is levied on the value of the property or assets inherited from a deceased person. The tax rate and exemptions vary depending on the relationship between the deceased and the beneficiary, as well as the value of the inherited property.

It is important to understand this principle and how heirs are categorized, because it will affect how much they pay.

At the same time, it is important to consider the problem of double taxation, which is particularly relevant for heirs residing outside Greece or inheriting foreign assets. Greece has bilateral treaties with several countries to avoid double taxation, sometimes providing for tax exemptions or credits.

Who is Liable for Inheritance Tax in Greece?

As mentioned above, inheritance tax in Greece is calculated on all of the assets located in the country, regardless of the nationality of the deceased or the one of the heir.

The beneficiary of the estate is responsible for paying the inheritance tax, which is calculated according to both the “objective value” of the property and the degree of kinship with the deceased.

For the purpose of calculating inheritance tax, heirs in Greece are divided into three categories:

1. Category A – Close Relatives
   1. Spouse or civil partner of the deceased
   2. Children, including adopted children
   3. Grandchildren
   4. Parents of the deceased
2. Category B – Other Relatives
   1. Siblings, including half-blood
   2. Consanguineous ascendants from the second degree onwards (e.g. grandparents)
   3. Consanguineous descendants from the third degree onwards (e.g. great-grandchildren)
3. Non-Relatives
   1. Other relatives by blood or marriage not included in categories A and B
   2. Unrelated third persons

Close relatives usually benefit from lower tax rates and higher exemption thresholds compared to other relatives and non-relatives, who have higher tax rates and lower exemption thresholds.

Inheritance Tax Rates in Greece in 2024

Inheritance tax in Greece is calculated based on the “objective value” of the property, which is often determined by specific criteria set by the Greek government and may differ from the market value.

Tax rates are progressive: they range from as low as 1% to as high as 40%, depending on the value of the inherited property and the relationship between the heir and the deceased.

If we take as an example a property with an objective value of €150,000, the tax rate will vary according to the heir who inherits the property.

A child, spouse or other close relative would benefit from a tax-free threshold of €100,000 and would have to pay a 1% tax rate on the remaining €50,000 – an inheritance tax of €500.

On the other hand, a non-relative who does not benefit from a tax-free threshold would have to pay an inheritance tax calculated by dividing the value of the property into several parts based on the different tax rates ranging from 20% to 40%, which would correspond to a tax rate of over €50,000.

Note that these rates are simplified and should only be used as a general guide and for illustrative purposes. Actual tax rates and brackets may vary, so please contact us to evaluate your specific real-world case.

Inheritance tax in Greece: Is There Double Taxation?

Double taxation is a serious problem with Greek inheritance tax, especially if the person inheriting the assets is a resident of a country other than Greece and the assets are located in another country.

In order to avoid double taxation, many European countries have signed bilateral tax treaties with each other. These treaties often include provisions that clarify which country has the right to tax certain types of income or assets, ensuring that you will not have to pay inheritance taxes in both Greece and your country of residence.

However, double taxation is a tricky issue, so it is always advisable to check with a lawyer about the correct interpretation of such international agreements. We mean it, we are not just saying it because we are experts in Greek inheritance law. It can save you a lot of money and aggravation.