Brussels, 15/12/2011 (Agence Europe) - On Thursday 15 December, the European Commission unveiled a raft of measures to tackle double taxation and discrimination over cross-border inheritance - problems that are very difficult for ordinary people but which generate only a fraction of state income (0.5%). The Commission has given guidelines to the member states to help them ensure their legislation does not run counter to EU anti-discrimination and freedom of circulation rules.
Given the differences in member states' legal systems, the lack of agreements among individual countries and administrative failings, European inhabitants inheriting or donating property in another member state often have to sell the property to pay the inheritance tax demanded from them by the countries in question, tax which is often higher than the value of the property! The same individuals are often discriminated against because some member states deduct higher inheritance tax if the inheritor does not live in that country.
The raft of new measures takes the form of a report, a recommendation and a series of guidelines. The Commission is not trying to harmonise member states' inheritance tax rules, but suggests a broader, more flexible application of those rules in order to avoid double taxation. In a working document, the Commission sets out guidelines for fighting discrimination in inheritance issues, giving tangible examples to help member states comply with EU law and provide people with information about the EU rules that have to be met by member states. The Commission will publish a progress report in three years' time, when it will decide whether further measures are needed.
The Council of the Notariats in the European Union (CNUE) has welcomed the measures announced by the Commission to provide Europe's inhabitants with greater legal and financial security, pointing out that there is a website http://www.successions-europe.eu giving an overview of inheritance law in all the member states, tax rules and bilateral agreements.
For the full Commission report, see:
http://ec.europa.eu/taxation_customs/taxation/personal_tax/inheritance/index_en.htm .