Commission issues report on wealth taxes
The Commission issued a report on a cross-country review of taxes on wealth and the transfer of wealth. The study compares three forms of wealth tax:
- Inheritance & gift;
- Real estate and land;
- Net-wealth.
The study found that inheritances are taxed in 20 Member States while gifts are taxed in 21. While the tax base is broad and the rates can be high the revenues from inheritances and gifts are low. Real estate is taxed in every Member State, with most taxing the possession and transfer of real estate. Taxes on net-wealth are a rare animal with only 3 Member States using net-wealth as a tax base. With only a small number of taxpayers liable to net-wealth tax, this results in a low revenue yield.
The full report can be found on the Commission’s website.