Paying the inheritance tax
You have to pay tax for property that you have inherited or received as a beneficiary of a last will and testament. The Finnish Tax Administration will determine inheritance taxes for the testator's estate on the basis of the estate inventory deed and the document possibly drawn up on the distribution of inheritance.
Submit a copy of the estate inventory deed and its appendices to the tax authority within a month of the estate inventory meeting. The estate inventory deed is the income tax return for the estate, and the Finnish Tax Administration will determine the inheritance tax on the basis of this.
There are two inheritance tax classes.
You are in the first class i.e. the one with a lower tax rate, if
- you are the spouse, parent, grandparent, great grandparent, child, grandchild or great grandchild (and so on) of the deceased
- you lived in a joint household with the deceased and were in a relationship, or you have or have had children together in your guardianship
- you are the deceased person's fiancé(e), who is given a subsidy pursuant to the Code of Inheritance
- you are the child, grandchild or great grandchild (and so on) of the deceased person's husband/wife.
Those in the second inheritance tax class include other relatives and acquaintances.
Yes, you have to pay inheritance tax even if the inheritance has not been distributed. The estate must be distributed if even one stakeholder so requires. If you have not distributed the inheritance yet, the Finnish Tax Administration will send a decision on inheritance tax on the basis of the estate inventory deed drawn up on the testator's estate.
If your feel there is an error in the inheritance tax decision you received, you can submit an appeal on the decision to the Finnish Tax Administration immediately whether the inheritance has been distributed or not.
The Finnish Tax Administration will make a decision on taxes in accordance with the estate inventory deed. After this, the tax authority will mail you the sum of the inheritance tax and the date of payment.
There are usually two instalments to pay. The first payment date is approximately three months after the decision and the second payment date approximately two months after this.
If your payment is late, the Finnish Tax Administration will send at most three payment reminders. After this, the unpaid inheritance tax will be transferred to recovery through enforcement.
You may have to sell property you have inherited in order to be able to pay your inheritance taxes. In these cases, you can apply for a deferment of payment. You can also apply for a deferment if you are experiencing payment difficulties due to unemployment, illness or an obligation to pay child support.