FINANCE

Platform for inheritance tax

Platform for inheritance tax

The Independent Authority for Public Revenue is planning a new platform for the online submission of inheritance tax declarations, expected to launch by the end of March.

After the electronic application for the submission of statements regarding parental concessions and donations, the tax administration is introducing a new system for the online declaration of those inheriting assets, instead of a handwritten submission. Notably, the online submission of parental concession declarations has been of great assistance to taxpayers, who rushed to benefit from the favorable legislation that provides for an increased tax-free ceiling of 800,000 euros.

Contrary to parental concessions and gifts, inheritance continues to be taxed with the old thresholds and rates. This means whoever inherits property this year will have to pay higher tax, as the new taxable rates, known as objective values, have undergone increases in most cases, reaching up to 250%.

Nevertheless the tax burden does not really concern those who inherit their main residence: The tax-free ceiling comes to €200,000 for an unmarried heir’s inherited property and reaches up to €250,000 for the value of a property inherited by anyone who is married or has a signed a civil partnership agreement.