The European Commission has decided to refer Greece to the Court of Justice of the European Union regarding its inheritance taxation of bequests to non-profit organisations in another EU Member State or EEA State.
The Greek legislation treats legacies bestowed on certain non-profit entities established in Greece more favourably than those bestowed on similar entities established in other EU/EEA States. A preferential tax rate of 0.5% is automatically available to certain Greek non-profit entities, whereas similar non-profit entities established in other EU/EEA States can only benefit from the preferential tax rate in Greece if legacies to Greek non-profit entities also have access to a preferential tax treatment in such other EU/EEA State. If this reciprocity condition is not met, the applicable tax rate varies between 20-40%, depending on the taxable value of the property.
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