Death of a close family member

Inheritance tax is the tax paid on property received as inheritance or on the basis of a will.

The Finnish Tax Administration determines the inheritance tax on the basis of the estate inventory deed and the attachments to it. If the inheritance has already been distributed, the deed of estate distribution is also considered in the inheritance taxation.

If the value of your inheritance is less than EUR 20,000, you do not need to pay any inheritance tax.

There are two inheritance tax brackets. Close family members fall within tax bracket 1 (lower inheritance tax). Other family members and persons outside the family fall within tax bracket 2. For example, siblings fall within tax bracket 2.

Calculate the preliminary amount of the inheritance tax and visit the website of the Finnish Tax Administration to read more about inheritance tax brackets.Opens in a new window.

The inheritance tax is determined on the basis of the date of death. No consideration is given to such matters as the cost of distributing the inheritance or changes in the value of the property after death. For this reason, the sums received in the distribution of inheritance often differ from the value of the taxable share determined in inheritance taxation.

The spouse and (under certain conditions) direct heirs aged under 18 are eligible for deduction for spouses and minors. You do not need to request these deductions as they are automatically calculated by the Finnish Tax Administration.

You will receive the inheritance tax decision after the Finnish Tax Administration has processed the estate inventory deed. Check the processing times from the website of the Finnish Tax AdministrationOpens in a new window.. The amount of the inheritance tax and the payment date are given on the inheritance tax decisionOpens in a new window.. The instructions for paying the inheritance taxOpens in a new window. are attached to the decision. The inheritance tax must be paid even if the inheritance has not yet been distributed.

Remember to keep the inheritance tax decision. You may need it, for example, when selling property that you have received as inheritance.

If you fail to pay the inheritance tax on time, the Finnish Tax Administration will send you a maximum of three payment reminders. After this, the unpaid inheritance tax will be transferred to recovery through enforcement.

If you have difficulty paying the inheritance tax, you can contact the Finnish Tax Administration for payment arrangements.Opens in a new window.

You may have to pay inheritance tax to Finland in the following situations (The tax treaties between Finland and other countries also have an impact on the matter):

• If you live in Finland and receive inheritance from outside Finland.
• If your inherit property located Finland even if you live outside Finland or the testator had lived outside Finland.
• If you have received inheritance from a person living in Finland even if you live outside Finland.

Visit the website of the Finnish Tax Administration to read more about inheritance tax in international situationsOpens in a new window..