Main PageFinancesTaxesInheritance tax

Inheritance Tax

Inheritance tax is governed by Act No. 357/1992 Sb., on inheritance, gift and transfer of the real estate tax. Inheritance tax is free-of-charge transfer of the property in case of death of physical person.Subject of the tax is any property movables, real estates, cashin Czech of foreign currency, rights. More in Art. 3 of the Act.

Who is payer

Moment of duty to pay the tax is the moment when the person is deceased. Every heir is obliged to pay tax of obtained property. So the payer can be as physical person as entity. More information is provided in Art. 19 and 20 of the Act. In case of more heirs, each of them is liable for payment of its portion. In case of children-heirs, their parents are liable for the payment.

The tax base

Base of the tax is value of property received. In case of more heirs, each of them is liable for submitting statemenet and payment.Should the property be of very small value, court may decide on deliberation of the duty to pay tax.

Submission of tax statement

Tax statement shall be submitted within 30 days from effective final decision of the court. Based on statement, Financial Office will compute the tax. Exceptions are persons belonging to I. group and state which do not have to submit the statement

GROUPPERSONS BELONGING TO GROUPSTariff rate
I.Direct relatives and spousesDeliberation
II.Relatives in the indirect line (brothers and sisters, cousins, nieces, uncles, aunts); spouses of children (daughter-in-law, son-in-law), children of a spouse, parents of a spouse and persons who lived with decedent for a period of at least one year prior to decedent´s death and who were constributing to the common household or were dependent on the decedent.1,5% - 6%
III.Entities3,5% - 20%