Direct Taxes

Inheritance and Gift Tax (ODZ)

Type of Tax Direct
Collected by Provincial Government
Paid by Natural persons
Tax base Value of the capital increase obtained without cost as the result of a bequest or gift.
Abatements in the base

On inheritances, when the degree of relatedness is between descendants, ascendants, spouses or common-law partners, inheritances amounting to less than €400,000 are not subject to tax. Click here to see the reductions for inheritances by degree of relatedness.
Net tax base Calculated by subtracting the corresponding abatements from the tax base
Tariff or Rate

On inheritances, after reductions, and on donations, when the degree of relatedness is between descendants, ascendants, spouses or common-law partners, a tax rate of 1.5% will be applied. For all other inheritances and donations, the calculation is based on the degree of relatedness. For more information, click here.
Liability Calculated by applying the tax rate to the net tax base.
Deductions None
Amount payable The tax liability calculated above.

The Tax on Inheritance (sucession - bequests) and Gifts (donation - received from someone still living) is a direct and subjective tax. It is levied on increases in assets obtained as a gift by natural persons. This tax is collected by the provincial government.

What is this tax levied on?

It is principally levied on:

  • Acquisitions of goods and rights by inheritance (sucession), bequest or any other form of succession.
  • The acquisition of goods and rights by gift or any other transaction free of charge between persons still living.
  • • The receipt of amounts by beneficiaries of life assurance, when the person contracting the assurance (the person who took out the policy) is different to the beneficiary or beneficiaries thereof.

How is the amount payable calculated?

  1. Tax base:  Value of the capital increase obtained without cost from succession or donation (i.e., by inheritance or donation from a person still living).
  2. Abatements in the base:  In the case of inheritances, when the relationship is between relations in the descending line (children, grandchildren, etc.) or ascending line (parents, grandparents, etc.) or spouses or civil partners, estates to an amount of less than €400,000 shall not be required to pay tax. See the abatements according to the type of relationship.
  3. Net tax base:  This is the amount resulting from subtracting the corresponding abatements from the tax base.
  4. Tariff or Rate: In the case of inheritances, after the abatements, and gifts when the relationship is between relations in the descending or ascending line or spouses or civil partners, a tax rate of 1.5% shall be applied. In the rest of the cases, inheritanes and donation/gifts, the rate is calculated based on the degree of relationship between the parties. For more information click here
  5. Liability: Calculated by applying the corresponding tax rate to the net tax base.
  6. Deductions:  None.
  7. Amount payable:  Because there are no deductions, this is the value of the tax liability itself.

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