Inheritance tax and inheritance law in Venezuela
Taxation Researcher | January 11, 2020
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.
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 2018 is VEF500 (US$0.0038). The tax unit or TU (unitariatributaria) for 2017 is VEF300 (US$0.0038).
|IN TAX UNITS, (TU)|
|Up to 15|
|15 - 65|
|65 - 165|
|165 - 415|
|415 - 915|
|915 - 1,915|
|1,915 - 5,915|