Inheritance tax (also known as estate tax or death tax) is a tax that is levied on the transfer of assets from a deceased individual to their heirs. Inheritance tax laws and rates can vary greatly depending on the country and even the region within a country. For individuals who are looking to minimize their inheritance tax liability, finding the cheapest place to live for inheritance tax can be an important consideration. In this article, we will explore some of the countries and regions that are known for having lower rates or more favorable inheritance tax laws.
In the US, inheritance tax laws are determined at the state level, and some states have no inheritance tax at all. As of 2021, the states with no inheritance tax include: Arizona, Florida, Indiana, Kansas, Minnesota, Mississippi, Montana, Nebraska, North Carolina, North Dakota, Oklahoma, and Texas. Other states have varying rates and exemptions, so it’s important to research the specific laws in your state.
For example, in California, inheritance tax is not levied on estates worth less than $11.7 million (as of 2021). Estates worth more than $11.7 million are subject to a progressive tax rate that ranges from 10% to 16%. In New York, estates worth less than $5.93 million (as of 2021) are exempt from inheritance tax, while estates worth more than $5.93 million are subject to a progressive tax rate that ranges from 3.06% to 16%.
While the US does not have a federal inheritance tax, there is a federal estate tax that is levied on estates worth more than $11.7 million (as of 2021). The federal estate tax rate is a flat 40%.
Portugal has become a popular destination for retirees and expats due to its low cost of living and favorable tax laws. Portugal has no inheritance tax for spouses or children, and the rate for other beneficiaries is a flat 10%. Additionally, there are no taxes on gifts between spouses or relatives.
This makes Portugal an attractive destination for individuals who are looking to transfer their wealth to their heirs with minimal tax liability. In addition to its favorable tax laws, Portugal offers a high quality of life, a mild climate, and a rich culture and history.
In Australia, inheritance tax was abolished in 1979, so there is no tax on inherited assets. However, there may be capital gains tax implications if the assets are sold. This means that individuals who inherit assets in Australia do not have to pay any tax on them, but may be subject to tax if they sell the assets at a later date.
Australia is a popular destination for retirees and expats, with a high standard of living, a diverse culture, and stunning natural beauty. While the cost of living can be high in some areas, the absence of inheritance tax can make it an attractive option for individuals who are looking to transfer their wealth to their heirs.
Singapore has a flat inheritance tax rate of 0% for assets passed on to direct family members, and a maximum rate of 10% for assets passed on to non-family members. Additionally, there is no tax on gifts.
Singapore is known for its vibrant economy, high standard of living, and world-class infrastructure. It is also a popular destination for expats and retirees, thanks to its favorable tax laws and diverse culture.
In Switzerland, inheritance tax rates vary by canton (region). Some cantons have no inheritance tax, while others have rates ranging from 1% to 50%. However, Swiss inheritance tax laws provide generous exemptions for spouses and children, and there are no taxes on gifts between spouses.
Switzerland is known for its stunning natural beauty, high quality of life, and stable economy. It is also home to many multinational corporations and financial institutions, making it an attractive destination for wealthy individuals and families.