How does inheritance tax work?
An inheritance consists of all the assets and liabilities left by a deceased person. If you receive an inheritance you might have to pay inheritance tax on it.
How much inheritance tax do you pay?
The tax payable on an inheritance depends on your relationship to the deceased person and the amount you inherit.
How do you pay inheritance tax?
You must declare any inheritance you receive to the tax authorities. for more information.
Exemptions from inheritance tax
You do not pay tax on a given amount of an inheritance. The exempt amount depends on your relationship to the deceased person. The exemption for a partner, for example, is higher than that for a child or grandchild.
In some cases you may not have to pay any inheritance tax at all. for more information.
Exemption from inheritance tax for ANBIs and SBBIs
Public Benefit Organisations (ANBIs) do not pay inheritance tax. ANBIs include churches and cultural institutions. Social purpose organisations (SBBIs) do not pay inheritance tax either. SBBIs include amateur sports clubs, hobby clubs and scouts associations.
Business succession scheme
If you inherit a business and continue to run it, you may qualify for the business succession scheme. The first €1,060,298 (situation in 201.65) is exempt in full and the remaining business assets qualify for a high exemption rate. Any tax you have to pay can be deferred for 10 years.
You must pay inheritance tax on money you inherit from a trust.