How much tax do I have to pay on a succession?
Last update: 10/1/2012
Inheritance tax is payable pursuant to the law on inheritance and gift taxes (law no. 357/1992 of the O.J. on the taxation of inheritances, gifts and on the taxation of transfers of real estate).
There are 3 tax categories:
- Ascendants and descendants, the spouse;
- Brothers and sisters, nieces and nephews, the spouses of children, the children and parents of the spouse, de facto cohabitees;
- All other beneficiaries.
For people in the first and second categories, death duties were abolished in 1998 (1st group) and in 2009 (2nd group).
For the third group, the tax rate varies according to the estate. For example, for an amount of 1 000,000 CZK, death duties will be 35 000 CZK (3.5%). For an amount of 5 000 000 CZK, death duties will be 260 000 CZK. For an amount of 10 000 000 CZK, death duties will be 680 000 CZK.
How much inheritance tax?
Inheritance tax is imposed only on distant relatives of the deceased (cousins and more distant relatives) and persons without a family bond. The tax is progressive and amounts to 3,5% – 20% of the respective portion inherited. Succession procedure is subject to civil law notary’s fee, which is regressive and amounts to 2% – 0,1% of the gross value of the estate.
Can the estate be subject to taxation in one or more Member States? Are there double taxation agreements?
The list of double taxation agreements concluded by the Czech Republic can be found on the web pages of the Ministry of Justice at http://portal.justice.cz.
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Successions in the Czech Republic
Current country: Germany