AADE issues updated instructions on usufruct and bare ownership taxes

According to the Property Tax Code, property acquired by a natural or legal person, or a legal entity, by reason of death, donation, or parental gift is, as applicable, subject to tax, and the liable party for payment is the beneficiary of the acquisition by death, donation, or parental gift.

For acquisitions by reason of death, the taxation date is generally the date of the decedent’s death (i.e., the inheritance takes effect). For donations and parental gifts, the taxation date is the date the donation or parental gift document is executed.

In cases where no document is drawn up for the donation or parental gift, or if the object of the donation or parental gift consists of movable assets delivered prior to the execution of the document, the taxation date is the date of delivery. For donations by reason of death, the taxation date is the date of the donor’s death. Additionally, in certain cases specified by law regarding the taxation of inheritances, donations, and parental gifts, the taxation date may be deferred.

Usufruct (Επικαρπία)

In every case of usufruct transfer, regardless of cause, a tax is imposed on its value. The usufruct tax is borne exclusively by the usufructuary, who is also responsible for submitting the relevant tax declaration.

If the usufructuary fails to submit a declaration and subsequently dies, the only parties responsible for submitting the declaration on their behalf are the legally liable heirs, in accordance with the provisions of common law on succession. The bare owner (ψιλός κύριος) is not required to submit a declaration for the usufruct if the usufructuary has not done so.