Inheritance tax

Inheritance tax is 10%

In the settlement of an estate or advance payment of inheritance, a will be completed and a statement of inheritance returned to the district commissioner where the estate is exchanged or the estate inherited is domiciled.

General information on inheritance tax

Inheritance tax is to be paid by heirs on all valuables that come into their possession on the exchange of an estate.

Inheritance tax shall also be paid on prepaid inheritance, gift inheritance, gifts from death and gifts where the donor has reserved the use or income from the gifted one until the day he/she died or for certain periods which have not passed at the time of his/her death.

In settlement of the estate of the deceased, the deceased's debts may be deducted from assets. In advance payment of inheritance, no deductions may be made from assets.

Of all real estate in Iceland that is transferred on the basis of legal inheritance, inheritance inheritance inheritance inheritance, or inheritance payment in advance, inheritance tax is to be paid, irrespective of whether the deceased or the person paying out the inheritance in advance is resident in Iceland or abroad.

If a change of estate or advance payment of inheritance has taken place abroad and a deceased person owned a property in Iceland, a declaration of inheritance on the property may have to be submitted to the district commissioner in Iceland and an inheritance tax paid.

Inheritance tax need not be paid on: