National

Abolishment of Inheritance Tax: A Comparative Analysis of These 5 Countries

Several countries have chosen to abolish inheritance tax in recent years, citing various economic and social reasons. Among them are Sweden, Norway, Austria, Slovakia, and Cyprus. Here’s a breakdown of when each country made this decision:

  1. Sweden: In 2004, Sweden decided to abolish its inheritance tax.
  2. Norway: Following suit in 2014, Norway also eliminated its inheritance tax.
  3. Austria: In 2008, Austria joined the ranks of countries abandoning inheritance tax, reshaping its taxation policies.
  4. Slovakia: Similarly, in 2004, Slovakia opted to abolish inheritance taxation.
  5. Cyprus: Leading the trend, Cyprus abolished inheritance tax as early as 2000, fostering a favorable environment for business and wealth accumulation.

 

Austria and Cyprus are among the countries that have undertaken significant tax reforms, including the abolition of inheritance tax. These decisions were motivated by various economic and social factors, aiming to foster investment, simplify tax systems, and attract individuals and businesses to their respective jurisdictions. Here’s a closer look at the specifics of each country’s approach:

Austria

Since August 2008, Austria has abolished inheritance tax, shifting its focus to property transfer tax for heirs inheriting property from relatives. This change, though often still discussed publicly as an inheritance tax, effectively ceased its existence. The move came as part of a broader tax reform in 2015/2016, which saw a notable increase in real estate transfer tax.

The decision to abolish inheritance tax was partly driven by the Austrian Constitutional Court’s ruling, citing significant inequality in taxing financial assets versus real estate.

Surprisingly, the actual revenue generated from inheritance tax prior to its abolition in 2008 was minimal, signaling its insignificance as a revenue source for the state. Despite its previous prominence in public and political discourse, the Austrian government currently has no plans to reintroduce inheritance tax, viewing it as an unnecessary levy.

Cyprus

On January 1, 2000, Cyprus boldly abolished inheritance tax as part of a comprehensive tax reform strategy aimed at attracting foreign investment and stimulating economic growth. This move positioned Cyprus as an attractive destination for individuals and businesses seeking a favorable tax environment.

The abolition of inheritance tax meant that both Cypriot residents and expatriates with assets in the country would no longer be subject to taxation on inherited property or other assets. This significant change simplified the process of transferring wealth between generations and removed a potential obstacle for expatriates considering relocating to Cyprus.

Read More: Supreme Court, Delhi High Court, States High Court, Other Courts, International

Nunnem Gangte

Recent Posts

Cal HC Stays Demolition Of Illegal Constructions In WB’s Mandarmoni

The Calcutta High Court on Friday granted an interim stay on the demolition of alleged…

19 minutes ago

SC To Pass Order On Pleas To Efface Words ‘Secular’, ‘Socialist’ From Preamble

The Supreme Court on Friday announced that it would deliver its order on November 25…

46 minutes ago

Air Pollution: SC Questions Delhi Govt On Truck Entry Amid GRAP-4 Restrictions

The Supreme Court raised concerns on Friday about the "drastic" consequences of the GRAP Stage…

60 minutes ago

Allahabad HC Transfers 12 District Judge-Level Officials

In a significant judicial reshuffle, the Allahabad High Court administration on Friday transferred 12 judicial…

2 hours ago

‘Eradicate Sanatan Dharma’ Remark: SC Defers Hearing Plea Of Udhayanidhi Stalin

The Supreme Court on Friday deferred the hearing on Tamil Nadu Minister Udhayanidhi Stalin's plea…

3 hours ago

2013 Rape Case: SC Notices Gujarat Govt On Asaram’s Plea Seeking Sentence Suspension

The Supreme Court on Friday sought a response from the Gujarat government regarding self-styled godman…

3 hours ago