If you’ve recently acquired property in Greece through inheritance, you might be curious about the governing laws and tax implications. Navigating inheritance procedures from overseas can seem daunting. Below, we address some common queries to help clarify this process.
How is Real Estate Property From Abroad Inherited?
Typically, the inheritance is subject to the laws of the country of the deceased’s citizenship at their time of death.
The presence of a will can significantly influence the inheritance process. If the deceased left a will, it might specify which country’s law should apply. Often, individuals choose the law of their nationality.
For example, if a Dutch national owns property in Greece and has made a will in the Netherlands, Greek authorities will recognize this will. While a Greek notary must process the inheritance acceptance, Dutch law will determine the distribution of assets.
What Happens if There is No Will?
If there’s no will, EU Regulation 650/2012 usually dictates that inheritance is governed by the law of the state where the deceased lived most recently.
Take, for instance, a Dutch woman married to a European man of any nationality who lived mainly in the Netherlands; Dutch law would apply.
However, if she lived primarily in Greece, Greek law would typically apply. But, Greek law states in Article 28 of the Greek Civil Code that inheritance is determined by the deceased’s nationality at death. So in this scenario, Dutch law would still govern.
Ultimately, in both examples, Dutch inheritance law prevails.
How is Greek Real Estate Property Inherited When the Heirs Live Abroad?
In Greece, transferring real estate to heirs requires a notarial deed of inheritance acceptance. Heirs must first secure a Greek tax identification number (AFM).
They must also present a Death Certificate and a Certificate of Inheritance Rights, typically issued by a notary in the deceased’s home country, complete with an Apostille stamp and officially translated into Greek.
The notary will submit an inheritance tax declaration, after which the Tax Office determines any applicable tax. Generally, when property is inherited by direct relatives, the inheritance tax is minimal or none. The tax is based on the ‘objective tax value’ set by the Greek Ministry of Finance, which is usually lower than the market value.
How Much is the Inheritance Tax in Greece?
Greece offers a significant inheritance tax exemption of 400,000 euros for the surviving spouse, provided they were married for at least five years, and for their minor children.
For convenience and assurance, Helfin Private Wealth can manage all related legal issues, prepare necessary documents, and oversee the entire process.
Do I Need to Be In Greece to Accept Inheritance?
It’s not mandatory to be in Greece in person to accept an inheritance. However, signing a Power of Attorney is essential to authorize Helfin Private Wealth to act on behalf of the heir(s).
Is There Double Taxation on the Inherited Estate?
Many European nations have agreements to avoid double taxation on inheritance, potentially exempting you from such taxes in your home country for overseas property. It’s advisable to seek guidance from a trusted tax advisor where you live.
Important Note:
It is absolutely forbidden to leave Greek property or assets to a trust as Greece does not recognise trusts in any capacity.
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