Which European country has the lowest inheritance tax?

Sweden and Austria have abolished inheritance tax entirely. Portugal and Luxembourg exempt direct heirs. Italy applies only 4% above a €1 million exemption per direct heir.

Does the UK have high inheritance tax compared to Europe?

The UK's 40% flat rate above £325,000 is one of the highest in Europe for mid-to-large estates. However, the nil-rate band transfer between spouses means couples can pass up to £1 million tax-free.

Can I reduce inheritance tax by moving to another European country?

Yes, but strict conditions apply. The move must be genuine and long-term. Some countries have anti-avoidance rules that still tax assets located on their territory for years after departure.

Does EU Regulation 650/2012 harmonize inheritance taxes across Europe?

No. The regulation only harmonizes jurisdiction and applicable law rules, not taxation. Each EU country retains its own inheritance tax regime.

Which European countries have abolished inheritance tax?

Sweden (2005), Austria (2008), and Slovakia (2004) have abolished inheritance tax. Several other countries — like Portugal and Luxembourg — have kept the tax but exempt direct-line heirs entirely.

Inheritance Tax in Europe 2026: Country-by-Country Comparison

Compare inheritance tax rates across 15 European countries in 2026. Rates, thresholds, exemptions: France, Germany, Italy, Portugal, UK, Switzerland and more.

## Introduction: Why Compare Inheritance Taxes Across Europe? Estate planning is one of the most important financial decisions you can make. Yet depending on where you live or own assets, what your heirs actually receive can vary dramatically. In 2026, the gap between Europe's most favorable countries (Sweden and Austria, which have abolished inheritance tax) and the most taxed (France, Belgium, the UK) can amount to tens of thousands of euros on an average estate. This guide compares the inheritance tax regimes of 15 major European countries in 2026, with up-to-date data, comparison tables, and practical advice. > **Legal note:** The rates shown are for information only. For any specific situation, consult a notary or qualified legal advisor in the relevant country. --- ## Summary Table: Inheritance Tax in Europe 2026 | Country | Direct line (children) | Max rate | Child exemption | Spouse | |---------|----------------------|----------|-----------------|--------| | 🇫🇷 France | 5% to 45% | 60% (non-relatives) | €100,000 | Exempt | | 🇧🇪 Belgium | 3% to 30% | 80% (non-relatives/Wallonia) | Variable | Variable | | 🇩🇪 Germany | 7% to 30% | 50% | €400,000 | €500,000 | | 🇪🇸 Spain | 7.65% to 34% | 34% (national) | Variable | Variable | | 🇮🇹 Italy | 4% | 8% | €1,000,000 | €1,000,000 | | 🇵🇹 Portugal | Exempt | 10% (non-relatives) | N/A | Exempt | | 🇨🇭 Switzerland | Exempt (24/26 cantons) | 36% (cantonal) | N/A | Exempt | | 🇱🇺 Luxembourg | Exempt | 48% (non-relatives) | N/A | Exempt | | 🇳🇱 Netherlands | 10% to 20% | 40% | €22,918 | €795,000 | | 🇬🇧 United Kingdom | 40% flat | 40% | £325,000 | Exempt | | 🇮🇪 Ireland | 33% | 33% | €335,000 | Exempt | | 🇦🇹 Austria | Abolished (2008) | — | — | Exempt | | 🇸🇪 Sweden | Abolished (2005) | — | — | Exempt | | 🇩🇰 Denmark | 15% | 36.25% | €42,000 | Exempt | | 🇬🇷 Greece | 1% to 10% | 40% | €150,000 | Variable | --- ## France — Progressive Rates up to 45% France applies a progressive scale that varies based on the degree of kinship and the value of assets transferred. **Direct line (parents to children):** - Exemption of €100,000 per child, renewable every 15 years - Rates: from 5% (up to €8,072) to 45% (above €1,805,677) **Surviving spouse:** Fully exempt since the TEPA Act of 2007. **Brothers and sisters:** 35% up to €24,430, then 45%. **Non-relatives:** Fixed rate of 60% — one of the highest in Europe. --- ## Germany — A Class-Based System with Generous Exemptions Germany applies three classes of heirs with substantial exemptions. **Class I (spouse, children, grandchildren):** - Spouse exemption: €500,000 - Child exemption: €400,000 - Grandchild exemption: €200,000 - Rates: 7% to 30% **Class II (siblings, nieces, nephews):** Exemption €20,000, rates 15% to 43%. **Class III (all others):** Exemption €20,000, rates 30% to 50%. A family with two children can transfer up to €800,000 (€400,000 × 2) completely tax-free. --- ## Italy — The Lowest Rates in Western Europe **Direct line (spouse, children):** 4% above a €1,000,000 exemption per heir. In practice, the vast majority of Italian family estates are not taxed. **Siblings:** 6% above €100,000. **Other relatives to the 4th degree:** 6% with no exemption. **Non-relatives:** 8% with no exemption. Italy offers some of the most favorable inheritance tax conditions in Western Europe. --- ## Portugal — Direct Line Completely Exempt Portugal is a remarkable exception: transfers between spouses, registered partners, and direct descendants (children, grandchildren) are **completely exempt**. **Direct line and spouse: 0%.** **Other heirs:** Stamp duty (Imposto do Selo) of 10% on the value transferred. This is one of the reasons Portugal attracts European retirees seeking favorable succession conditions. --- ## United Kingdom — 40% Above the Threshold **Nil-rate band:** £325,000 per person. **Residence nil-rate band:** An additional £175,000 if the main residence is passed to children. **In practice:** An individual can transfer up to £500,000 (≈€590,000) tax-free, and a couple up to £1,000,000. From April 2026, unused pension funds are included in the taxable estate — a significant tightening following the October 2024 Budget. --- ## Austria and Sweden — Inheritance Tax Abolished - **Austria:** Abolished inheritance tax in 2008. Only a real estate registration fee of 3.5% remains. - **Sweden:** Abolished in 2005. No inheritance tax regardless of value or relationship. --- ## Ranking by Tax Attractiveness (Direct Line, 2026) **Most favorable:** 1. Sweden — 0% 2. Austria — 0% 3. Portugal — 0% (direct line) 4. Luxembourg — 0% (direct line) 5. Switzerland — 0% in 24 out of 26 cantons 6. Italy — 4% above €1M per child **Least favorable for large estates:** 1. Belgium (Wallonia) — up to 80% for non-relatives 2. United Kingdom — 40% flat above threshold 3. France — 45% direct line, 60% for non-relatives 4. Ireland — 33% --- ## Practical Simulation: €500,000 Passed to 2 Children | Country | Estimated tax | Net received | |---------|--------------|-------------| | Sweden / Austria | €0 | €500,000 | | Portugal / Luxembourg | €0 | €500,000 | | Italy | €0 (below €1M/child) | €500,000 | | Germany | €0 (below €400,000/child) | €500,000 | | France | ~€20,000 (after exemptions) | ~€480,000 | | Belgium (Flanders) | ~€55,000 | ~€445,000 | | Belgium (Wallonia) | ~€75,000 | ~€425,000 | | United Kingdom | ~£70,000 | ~£430,000 | --- ## EU Regulation 650/2012 and Cross-Border Estates EU Regulation 650/2012 harmonizes jurisdiction and applicable law for cross-border successions in Europe. It allows EU citizens living in another Member State to choose that their estate is governed by the law of their nationality. However, it does **not** create fiscal harmonization: each country retains its own inheritance tax regime. Real estate is generally taxed in the country where it is located. --- ## How MyLastWill.io Helps Planning your estate means anticipating these issues. A well-drafted will, a timely gift, an informed choice of residence — all levers that can save your heirs tens of thousands of euros. MyLastWill.io guides you through drafting your estate wishes, with an AI expert familiar with the legal and fiscal specifics of each European country. Your document is then certified on the blockchain for legally recognized proof of date.