How is inheritance tax calculated?

The inheritance tax is dependent on how close the deceased and the heir are related. A closer relation, like children or siblings, will have a far bigger amount of tax-free fortune and will pay a lower percentage of taxes. People who are not close kin will have to pay more and for smaller amounts.

Tax class I: Spouse or partner, Children and stepchildren, Descendants of these children and stepchildren, Parents and ancestors (grandparents, great-grandparents etc.)

Tax class II: Siblings, descendants of siblings to the first degree, Sons and daughters-in-law, stepparents and parents-in-law, Divorced spouses

Tax class III: All other persons (such as partners, friends)

 

Inheritance                  Tax in % (by Class)

€75.000                        7% (I) 15% (II) 30% (III)

300.000 €                    11% (I) 20% (II) 30% (III)

€600.000                     15% (I) 25% (II) 30% (III)

€6.000.000                  19% (I) 30% (II) 30% (III)

€13.000.000                23% (I) 35% (II) 50% (III)

€26.000.000               27% (I) 40% (II) 50% (III)

over €26.000.000      30% (I) 43% (II) 50% (III)

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