Inheritance tax and inheritance law in Venezuela

October 12, 2016

The Global Property Guide looks at inheritance from two angles: taxation, and what inheritance laws apply to foreigners leaving property in Venezuela: what restrictions there are and whether making a will is advisable.


INHERITANCE TAX


How high is income tax on residents in Venezuela?

There are gift and inheritance taxes in Venezuela. The tax rates vary depending on the value of the inheritance and the relationship between the benefactor and the beneficiary.

The taxable inheritance is computed by deducting the following from the market value of the gross estate:

  • Any debts owed by the deceased, including taxes (as duly substantiated by proper documents)
  • Death, funeral, and related expenses
  • Attorney’s fees incurred during the process of allocating the inheritance and assessing the tax liabilities

The inheritance tax is levied on the gross share of each recipient. The recipients are classified into different categories, depending on their relation with the deceased:

  • Category I: spouse, direct ascendants, direct descendants, adopted child
  • Category II: siblings, nephews, nieces
  • Category III: uncles, aunts, first cousin
  • Category IV: any other person

The taxation of residents in Venezuela is in tax units (unitariatributaria, TU), which is an adjustment index. The tax bands are all in tax units, whose monetary value changes depending on the changes in the consumer price index. The tax unit or TU (unitariatributaria) for 2015 is VEF150 (US$24). The tax unit or TU (unitariatributaria) for 2016 is VEF177 (US$29).

INHERITANCE TAX

TAX RATE
TAX RATES FOR DIFFERENT CATEGORIES
IN TAX UNITS, (TU)
I
II
III
IV
Up to 15
1%
2.5%
6%
10%
15 – 65
2.5%
5%1
2.5%
15%
65 – 165
5%
10%
20%
25%
165 - 415
7.5%
15%
25%
30%
415 - 915
10%
20%
30%
35%
915 - 1,915
15%
25%
35%
40%
1,915 - 5,915
20%
30%
40%
45%
Over 5,915
25%
40%
50%
55%

INHERITANCE TAX 2015

TAX RATE
TAX RATES FOR DIFFERENT CATEGORIES
VEF, (US$)
I
II
III
IV
Up to 2,205 (US$357)
1%
2.5%
6%
10%
2,205 – 9,750 (US$1,548)
2.5%
5%1
2.5%
15%
9,750 – 24,750 (US$3,929)
5%
10%
20%
25%
24,750 – 62,250 (US$9,881)
7.5%
15%
25%
30%
62,250 – 137,250 (US$21,786)
10%
20%
30%
35%
137,250 – 287,250 (US$45,595)
15%
25%
35%
40%
287,250 – 887,250 (US$140,833)
20%
30%
40%
45%
Over 887,250 (US$140,833)
25%
40%
50%
55%

INHERITANCE TAX 2015

TAX RATE
TAX RATES FOR DIFFERENT CATEGORIES
VEF, (US$)
I
II
III
IV
Up to 2,655 (US$421)
1%
2.5%
6%
10%
2,655 – 11,505 (US$1,826)
2.5%
5%1
2.5%
15%
11,505 – 29,205 (US$4,636)
5%
10%
20%
25%
29,205 – 73,455 (US$11,659)
7.5%
15%
25%
30%
73,455 – 161,955 (US$25,707)
10%
20%
30%
35%
161,955 – 338,955 (US$53,803)
15%
25%
35%
40%
338,955 – 1,046,955 (US$166,183)
20%
30%
40%
45%
Over 1,046,955 (US$166,183)
25%
40%
50%
55%

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