Payment instructions for inheritance tax are included in the tax decision
Your inheritance tax decision contains the information you need for paying the tax: the amount of tax, the due date, and other required details. Make sure to use the correct bank account number and reference number when making the payment. This ensures that the payment is allocated to the correct tax.
Inheritance tax is assessed separately for each inheritor. One party to the estate is not liable for the inheritance tax of another party.
Instalments and due dates
The amount of inheritance affects the payment instalments:
- If the amount of tax is less than €500, the tax must be paid in one instalment.
- If the amount of tax is €500 or more, the tax is divided into two instalments.
- However, if at least €1,700 of the tax is for a farm or other business that the inheritor continues to operate, there may be up to 10 instalments.
If you continue the decedent’s farming or business operation, you can request extended time for payment in the deed of estate inventory or in the gift tax return. You must request the extension before we assess your taxes. If we grant you an extension of the due date, the tax on the farm or business can be divided into annual instalments over a period of up to 10 years. Each instalment must be at least €850. You do not need to pay interest on the payments during the extension period.
The due dates for inheritance tax are determined as follows:
- the first due date is approximately 3 months after we have made the tax decision
- the second due date is 2 months after the first due date.
Example: If your inheritance tax decision states that the assessment of your inheritance tax was completed on 17 December 2019, the first instalment is due on 1 April 2020 and the second on 3 June 2020.
If the due date is a Saturday, Sunday or other holiday, you can pay the tax on the next business day without having to pay a late-payment charge.
The tax must be paid even if you have made a claim for adjustment
You must pay your taxes on their due dates even if you have made a claim for adjustment of inheritance tax or gift tax.
You may request the Tax Administration to prevent or postpone any recovery of tax by enforcement while your claim is being processed. However, unpaid taxes continue to collect interest even if enforcement is prevented or postponed.
When the payment is late
If you pay your inheritance tax after its due date, you must also pay late-payment interest.