When thinking about buying property abroad it is interesting to know the conditions of passing this property on to your children or relatives. In some countries there is no inheritance tax (Argentina, Sweden) or there is 0 tax rate for relatives like in the Czech Republic. In some other countries this tax represents a very significant financial burden. Perhaps the highest inheritance taxes can be found in the US and Uniteed Kingdom, especially when we are talking about more valuable property.

• In the United States a surviving spouse pays nothing. All other bequests pay federal taxes from 8 % for sums up to 10 000 USD to 45 % for property above $1.5 mil. US. With additional local taxes the total actual rate can be above 50%.


• In the United Kingdom a surviving spouse again pays nothing. All other bequests above £275,000 (€396,000) are subject to taxation at 40%.


• In Germany spouses pay 7% on legacies above €307,000 Euro, rising to 30% on legacies above €25.9 Million ($31.5 Million US) on a sliding scale. Non-spouse relatives pay 12% to 40%, and non-relatives pay 17% to 50% on legacies above €307,000.


• In France a surviving spouse pays 5% on legacies above €76,000, rising on a sliding scale to 40% on legacies above €1.776 Million. Other relatives pay at similar rates but with lower tax-free allowances, while non-relatives pay at up to 60% with nearly no tax free allowance.


• In Spain spouses have to pay 8.5% on legacies above €16,000, rising to 34% on legacies above €800,000. When the surviving spouse dies, inheritance tax has to be paid again - but this time on 100% rather than 50% of the assets. The Spanish tax system appears specifically designed to capture non-domiciled and second-home-owning beneficiaries.


• The Italian inheritance tax rates are lower than any of these. Any legacy or gift above €1 million paid to each spouse, child or parent attracts Inheritance and Gift Tax at the rate of 4%.


• In Czech Republic inheritance or gift are exempt from taxation in case of relatives, not only spouses, children and grandchildren, but also brothers, sisters, nieces, uncles, aunts and people that have lived for at least one year in the common household with the deceased.

Czech republic has the most advantageous tax regime not only concerning inheritance tax, but as far as property taxest in general are concerned. Property taxes are highest in the United Kingdom, at 4% of GDP and lowest in the Czech Republic where they are 0.6% of GDP.

Top marginal rates for spouses and children