Are you interested in how much inheritance tax is paid in Croatia and how much is paid in EU countries?
Inheritance tax is levied on the value of the property and is paid by the heirs in accordance with national inheritance laws. Most European countries have a special tax related to inheritance and gifts, and in some it is not taxed or taxed as in other cases of transfer of property.
Inheritance tax in the European Union
For example, inheritance tax does not apply in Austria, the Czech Republic, Cyprus, Estonia, Latvia, Malta, Romania, Norway, Slovakia and Sweden, while other EU countries tax inheritance, and the level of taxation depends on the family connection with the deceased as well as on the amount inherited.
In most countries, heirs from the first hereditary order (spouses, descendants, ancestors) are exempt from paying taxes in part or in full.
In some countries, such as Belgium, Spain or Switzerland, inheritance tax rates vary depending on the region. Most European countries do not tax transfers below a certain amount.
Some have uniform tax rates, and in most, multiple rates are in effect with high spreads, with progressive increases depending on family affiliation and size of inheritance. For example, in Germany rates of 7 to 50 percent apply, in France from 5 to 60 percent, and in Spain from 7.65 to as much as 87.6 percent.
In Germany, the first order heirs are also obliged to pay the tax, but a significant part of the inheritance is tax-free for them. For example, up to 500,000 euros are tax-free for a spouse (life partner) and up to 400,000 euros for children. For other heirs, the tax-free rate is much lower and amounts to 20,000 euros.
The tax rate for the taxable part of the inheritance increases progressively from 7 to 50 percent, depending on the kinship and the amount of inheritance. For example, for an amount of the taxable value of an estate of up to 75,000 euros, the first line of succession pays tax at a rate of 7 percent, the second line of succession 15 percent and the other succession orders 30 percent.
In Belgium, for example, each region (Brussels, Flanders and Wallonia) has its own rate which taxes property depending on its amount, but also by classes depending on kinship, so the tax rate ranges from 3% to as much as 80%.
In Ireland, inherited assets are taxed under the capital acquisitions tax at a uniform rate of 33 percent.
Inheritance tax in Croatia
And how is it in Croatia?
In Croatia, inheritance taxation is much milder than in most other countries with this form of taxation. A uniform tax rate of 4 percent is in place, regardless of the size of the inheritance, and the first line of succession — made up of a spouse, descendants and ancestors who form an upright line, and adoptive parents who are in that relationship with the deceased — is completely exempt from paying taxes.
The tax at a rate of 4 percent is paid on cash, cash receivables and securities and on movable property (vehicles, equipment), if their individual market value exceeds 6,700 euros. Inheritance tax is not paid on inherited property, but it is paid real estate sales taxat a rate of 3 percent.
The taxable amount consists of the amount of cash and the market value of real estate, monetary claims and securities (securities), as well as movable property at the date of determination of the tax liability, after deduction of debts and expenses relating to the property on which the tax is paid.
More information about taxes in the Republic of Croatia can be found at Official website of the Tax Administration.
published on 18.04.2024 year