Domestic inheritance tax rules in EU Member States regarding cross-border successions

Abstract

This article gives an introduction to the differing tax mechanisms of the European Member States impacting cross-border successions in the European Union (hereafter “EU”). The variety of applicable domestic tax rules and connecting factors gives rise to potential discrimination and multiple taxation issues based on nationality and has a potential impact on cross-border mobility of people and assets within the EU. A study of the settled case-law of the Court of Justice of the European Union (hereafter “CJEU”) in the field of direct taxation regarding national inheritance/gift tax gives insights of the CJEU’s analysis of the compliance of Member States tax legislation in cross-border succession with the Treaty Freedoms.