Inheritance tax and law
June 26, 2017
The Global Property Guide looks at inheritance from two angles: taxation, and what inheritance laws apply to foreigners leaving property in Jamaica: what restrictions there are and whether making a will is advisable.
How high are inheritance taxes in Jamaica?
Inheritance is not taxed in Jamaica but transfers of properties are subject to tax.
Properties can be transferred in two ways: inter vivos (in life) transfers and mortis causa (after death) transfers.
For transfers after death, the taxable inheritance is the market value of the estate less funeral expenses, estate administration expenses, and debts related to the property up to a maximum of 5% the property value.
|NET TAXABLE VALUE, JMD (US$)||MARGINAL TAX RATE|
|Up to 100,000 (US$8,163)||0%|
|Over 100,000 (US$8,163)||7.5% on all value over US$8,163|
For inter vivos (in life) transfers or gifts, the tax rate is a flat 7.5%. When the transfer is between related people, the tax is imposed on the property's market value.
The process of releasing inheritance is regulated by the Government of Jamaica. Until all the paperwork has been done and government duties paid, no property or other assets are released. The entire process takes about 18 months or longer.
Thanks to Myers, Fletcher & Gordon
What inheritance laws apply in Jamaica?
Jamaican laws apply to the inheritance of real estate in Jamaica.
The principal laws applying to inheritance issues in Jamaica are:
- The Probate of Deeds Act, which outlines the requirements for proving wills.
- The Wills Act, which states the rules regarding making wills, determining the validity of wills, and the varia