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Inheritance tax in Estonia 2026
Estonia charges nothing when wealth passes: inheritances and gifts from individuals are simply exempt income, whoever gives or receives.
The catch comes later — inherited and gifted property has a nil acquisition cost, so selling it triggers the 22% on the entire proceeds unless an exemption (like the home rule) applies.
At a glance
- top rate
- 0%
- entry band
- 0%
- tax year basis
- Not applicable
- filing deadline
- None
- residency basis
- No inheritance or gift tax for anyone, on any assets
- regime flag
- No wealth tax; only land tax on Estonian plots
Rates
Inheritances and gifts (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | All inheritances |
| 0% | — | Gifts from individuals and resident companies (foreign-company gifts if taxed abroad) |
| 22% | Full sale proceeds | Later resale of inherited or gifted property — the acquisition cost counts as nil |
Residency
Residency trigger
Nothing to trigger — no estate, inheritance or gift tax exists; heirs should simply document values for later disposals.
Non-resident treatment
Identical: Estonian assets pass to foreign heirs with 0% Estonian tax.
Notes
- The nil-basis rule is the real cost: heirs selling inherited real estate pay 22% on the whole price — unless they first make it their own residence and use the home exemption.
- There is no wealth tax; annual land tax applies to Estonian plots, with home plots largely exempt.
- Gifts of appreciated assets transfer the tax problem to the recipient along with the asset.
- Estate planning here is about basis and residence timing, not about avoiding a transfer tax.
FAQ
Does Estonia tax inheritances?
No — 0% on inheritances and gifts; the income tax only appears if heirs later sell, since inherited assets carry a nil cost basis toward the 22%.
How can heirs avoid tax on inherited property?
Use the exemptions — living in an inherited home until sale makes it tax-free (one such sale per 2 years); otherwise the full proceeds face the flat 22%.
Figures: tax year 2026, compiled from public sources. Not tax advice.