Estate, Inheritance, and Gift Taxes in Europe, 2026

Inheritance taxes date back to the Roman Empire, which collected 5 percent of all inherited property to pay its soldiers' pensions. Today, the practice is widespread. Twenty-four out of the 35 European countries covered in this map currently levy estate, inheritance, or gift taxes.

Estate taxes are levied on the property of the deceased and paid by the estate itself. In contrast, inheritance taxes are only levied on the value of assets transferred and are paid by the heirs. Gift taxes are levied when property is transferred by a living individual.

Countries typically charge either an estate tax An estate tax is imposed on the net value of an individual's taxable estate, after any exclusions or credits, at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. or an inheritance tax. However, estates can be double taxed if they fall under two jurisdictions that apply different taxes. For this reason, European Union Member States have installed mechanisms intended to prevent or relieve double taxation if such a situation occurs.

As tempting as inheritance, estate, and gift taxes might look-especially when the Organisation for Economic Co-operation and Development (OECD) notes them as a way to reduce wealth inequality-their limited capacity to collect revenue and their negative impact on entrepreneurial activity, saving, and work should make policymakers consider their repeal instead of boosting them.