Tax brackets

How are tax brackets relating to gift and inheritance tax determined?

Gift and inheritance receivers are divided into two tax brackets, according to which the tax is calculated. The tax burden is heavier on the most distant relatives.

Under tax bracket 1, tax is paid by the decedent’s wife, husband or registered partner, an inheritor in direct line of descent or ascent (child, grandchild, parent or grandparent), an inheritor to the decedent’s spouse or former spouse in direct line of descent and an engaged partner of the deceased who is entitled to support under the Code of Inheritance.

A spouse is also considered to be a person who is living in a marriage-like situation with the deceased, who has been married to the deceased at some time or who has or has had a common child with the deceased. Adopted children and parents are treated as biological relatives for tax purposes.

All other relatives and individuals outside the family pay tax under tax bracket 2.

Up-to-date inheritance and gift tax schedules can be found on the following websites: Inheritance and Gift Tax.

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