Shock for thousands of heirs – what changes with the new taxes?

Everything you want to know about them Inheritance taxes ET is showing today.

The time and method of submitting declarations, the conditions and limits of tax exemption in the event of obtaining a first residence, the required supporting documents, and the tax calculation tables are mentioned in detail, with the aim of fully informing taxpayers.

According to the current legislation, the heir or his legal representative is responsible for filing the inheritance tax return. The inheritance tax return must be filed within nine months if the heir died in Greece, or within one year if the heir died abroad or the heirs or legatees were resident abroad at the time of death.

The period shall commence from the time of the death of the heir, for heirs who do not have a will, or from the date of publication of the will for heirs who do not have a will, or from the publication in the press of the final decision ordering non-attendance or from the death of the testator. The debtor in a declaration, if he did not submit a declaration or from the appointment of guardians of the school estate, or executors of the will, or bankruptcy trustees or their recognition, in the case of heirs of the school estate.

justification

The supporting documents required when filing an inheritance tax return are the following:

* Death certificate of the heir

* An inheritance certificate or a certificate from the competent municipal or community authority stating the type and degree of kinship of the heir.

* Certificate from the clerk of the Magistrate’s Court that the will has not been published if it does not exist or that a newer will than the one submitted has not been published.

* A copy of the published will and the minutes of its publication.

* Certificate of non-waiver of inheritance rights

* Certificate of no dispute over inheritance rights

* Beneficiary’s age certificate, as the beneficiary’s age is taken into consideration to determine the value of the inherited property.

* Authentication document in case of power of attorney

* Documents proving the transfer of the time of generation of the tax liability

* Proof of inheritance debts

How to apply

The inheritance tax return is, in most cases, filed electronically on the IRS myPROPERTY platform, at the email address https://www1.aade.gr/myaade/myPROPERTY/#!/arxiki.

In particular, for deaths from 1/1/2022 onwards, they are submitted electronically via the myPROPERTY app:

1) Initial and amended inheritance declarations of the debtor in the declaration of the heir or legal representative of a legal entity, if no notarial document has been prepared for its acceptance, for the transferred assets using personal myAADE passwords.

2) The initial and amended inheritance declarations with which the notarial acceptance document is drawn up are completed by the authorized notary who will prepare the notarial acceptance document for movable and immovable assets within the objective system and are submitted by the person responsible for the declaration or his legal representative using the personal myAADE passwords. The necessary condition is that no other paper declaration has been submitted to the DOU before.

Separate declarations are filed for each reason of inheritance (a separate declaration for intestate inheritance and a separate declaration for testamentary inheritance).

If the inheritance includes movable and immovable assets, a joint electronic declaration is submitted, filled out by a notary, when the application control ensures that the tax is paid in installments. When the application control does not guarantee that the tax is paid in installments for mobile phones, a separate electronic declaration is submitted and the tax must be paid in one go. If the taxpayer wants to provide a real guarantee of paying the mobile phone tax in installments, he must submit a handwritten declaration to the DOU.

In the event that the inheritance includes only movable assets, an electronic declaration is made by the notary public when issuing a notarial deed or by the heir or legal representative of a legal entity when a notarial deed is not issued. When the application control shows that the payment of the tax in installments is not guaranteed, a message appears stating that in the event of filing the declaration, the tax must be paid if confirmed once, within three (3) business days from the date of filing the declaration. Submission of the declaration. If the taxpayer wishes to provide a real guarantee or a letter of guarantee for the payment of the tax in installments, he must submit a handwritten declaration to the DOU.

substitute…

The law provides the possibility for the heir to either waive the inheritance and thus be relieved of any debt owed to him, or to accept the inheritance or to accept the inheritance with the benefit of the stock, which is basically a procedure that, despite its relatively high cost, can be a lifesaver for the heir, because he will not be liable on his personal property for any debts from the inheritance.

conditions

Tax exemption limits for first residence

In the event that the first home is acquired by inheritance, the tax exemption is provided under the following condition: The heir (husband or son of the heir), his wife or their minor children do not have the right to full ownership, usufruct or residence in another home or an ideal housing share that meets the family’s housing needs or full ownership rights over a building plot or an ideal land share that corresponds to the building area that meets their housing needs and is located in a municipality or community with a population of more than 3,000 inhabitants. Housing needs are considered covered if the total area of ​​the above-mentioned real estate (and other corresponding inherited real estate) is 70 square meters. increased by 20 square meters. for each of the first two children and by 25 square meters. for the third and each of the beneficiary’s subsequent children.

Tax-free limits

The exemption is granted for a residence value of up to €200,000 per minor or unmarried heir and up to €250,000 for a married person or for those entering into a cohabitation agreement. The exempt value for a married person or for those entering into a cohabitation agreement is increased by €25,000 for each of their first two children and by €30,000 for the third child and each of their subsequent children. The exemption amount also includes the value of a parking space and storage space, up to 20 square metres each, as long as they are located on the same property and acquired at the same time. An exemption is also granted for land up to a value of €50,000 per minor or unmarried heir and up to €100,000 per married or cohabiting heir. The exempt amount for a married person or those entering into a cohabitation agreement is increased by €10,000 for each of their first children and by €15,000 for the third child and each of their subsequent children. The above applies if the heir or beneficiary legatee receives the entire plot of land and full ownership and not an undivided percentage.

Within two years for minor heirs

Payment in 12 installments every two months or a lump sum with a 5% discount

Inheritance taxes are paid in 12 equal monthly installments, each of which cannot be less than 500 euros, except for the last installment. In the case of inheritance, if the heir is a minor, the number of installments is doubled, each of which cannot be less than 500 euros, except for the last.

If the debtor pays the tax in full on the due date for the first installment every two months, he is entitled to a 5% discount. If the resulting tax is less than 500 euros, the amount is paid in one lump sum and without deduction. If the declaration relates only to movable property and the payment of the tax is not guaranteed, the tax is certified and paid in one lump sum within three (3) days of certification. In case of late amendment of the declaration, the tax is paid in one lump sum within 30 days without deduction.

Limitation period

The state’s right to impose inheritance tax, donations and parental benefits lapses over time after 10 years if a declaration is filed, or 15 years if no declaration is filed.

AI am tax rates

Acquiring real, property, or debt rights over real estate, stocks, and other assets (i.e., all assets Except for cash) Due to death is subject to tax, which is calculated based on the tax tables below:

Class A: This category includes: a) the spouse of the heir or donor, b) the person who has entered into a cohabitation agreement with the heir or donor, provided that the cohabitation has lasted for at least two years, c) the descendants of the heir or donor who are first-degree relatives of the heir or donor (children from a legal marriage, children out of wedlock against the mother, recognized voluntarily or judicially against the father, legitimately by subordinate marriage or judicially against both parents), d) second-degree blood descendants (grandchildren of the heir or donor) and e) first-degree blood ascendants (parents of the heir or donor).

Class B: This category includes: a) third and subsequent blood descendants (great-grandchildren), b) second and subsequent blood descendants (grandfathers, grandmothers), c) brothers (half-brother or half-brother), d) third-degree blood relatives on the side, e) stepfathers and stepmothers, f) children from a previous marriage of the husband, g) kinship children (in-laws – brides) and h) ascendants by kinship (fathers – mothers-in-law – mothers-in-law).

Class C: This category includes any other person related by blood or lineage to the heir or a stranger (non-relative).

Note: After 26-1-2010, when the heir is the spouse or minor child of the heir, the value of the inherited property up to 400,000 euros per heir is exempt from inheritance tax (with corresponding restrictions on the scales for calculating tax category A).