Estate and Inheritance Tax Transfer Rules for U.S. Expats

A Quick-Reference Guide Based on Country of Residence

If you receive an inheritance as an American citizen living overseas, you’ll need to navigate any estate or inheritance taxes imposed by your country of residence. The following table provides insight to help you understand your potential tax liabilities.

U.S. Citizen Beneficiary's* Country of Residence	Is there an inheritance tax on U.S. assets bequeathed by the U.S. decedent to me in the country where I live?	How long does it take before I am subject to inheritance tax in my country of residence** abroad?	Is there a bilateral U.S. estate tax or estate & gift tax treaty in place?	Is there an exemption or tax credit available by treaty or by other legal source?

U.S. Citizen Beneficiary's* Country of Residence	Is there an inheritance tax on U.S. assets bequeathed by the U.S. decedent to me in the country where I live?	How long does it take before I am subject to inheritance tax in my country of residence** abroad?	Is there a bilateral U.S. estate tax or estate & gift tax treaty in place?	Is there an exemption or tax credit available by treaty or by other legal source?
Australia	None	N/A	Estate & Gift	Yes, by Estate & Gift Treaty; by tax code
Austria	None, but gift tax regime applies, requiring notice filing	Subject to notice filing requirement after 6 months residency	Estate & Gift	Yes, by Estate and Gift Treaty
Canada	None, but possible capital gains tax via deemed disposition	N/A	None	Yes, by U.S.-Canada Income Taxation Treaty
China P.R.C.	None	N/A	None	N/A
France	None, by treaty. Decedent’s domicile is determining factor	N/A	Estate & Gift	Yes, by Estate & Gift Tax Treaty
Germany	Yes	Earlier of domiciled in Germany or deemed domiciled (e.g 10 years residency) for inheritance tax purposes	Estate & Gift	Yes, by Estate & Gift Treaty
Hong Kong	None	N/A	None	N/A
Ireland	None, due to categorization as U.S. situs assets	N/A	Estate Only	Yes, by U.S.- Ireland Double Income Taxation Treaty (Capital Acquisitions Tax Exemption)
Italy	None. Situs of assets and decedent’s domicile are determining factors	N/A	Estate & Gift	Yes, by Estate and Inheritance Tax Treaty
Japan	Yes	If one has jusho¹ in Japan or 10 years or more in Japan	Estate & Gift	Yes, by Estate & Gift Treaty
The Netherlands	None. Rules focus on domicile of decedent as determinative	N/A	Estate Only	Yes, by Estate Treaty
Singapore	None	N/A	None	N/A
Switzerland	Maybe. Depends on regional canton, degree of lineal proximity; does trigger wealth tax	When one has habitual residence (presumably after 90 days)	Estate	Yes, by U.S.-Switzerland Income Tax Treaty and by Swiss tax code
South Korea	None, but gift tax may apply if bringing assets into country	More than 5 years as resident in South Korea	None	Yes, by federal tax code and foreign tax credit regime
Spain	Yes, federal or regional inheritance tax applies	N/A	None	No
Sweden	None	N/A	None	N/A
United Kingdom	None	N/A	Estate & Gift	Yes, by Estate & Gift Treaty

1. Jusho means “principal place of residence” (i.e., domicile by habitual residence)

* The table assumes that the heir beneficiary is a U.S. citizen and not also a citizen of his/her country of residence.

** Transfer tax residence is not the same as income tax residency; although, some countries use the income tax residency rules to determine if an heir is subject to death transfer taxes.

If you’re a U.S. expat navigating the challenges of a recent inheritance, Creative Planning International is here to help. We work with Americans abroad and cross-border families to help maximize their inheritance and avoid costly mistakes. We understand the complex interaction of multi-jurisdiction tax and regulatory regimes and take into account a wide range of country-specific factors as we help you maximize your inheritance and minimize the taxes you owe. For more information, request a meeting with a member of our team.

Estate and Inheritance Tax Transfer Rules for U.S. Expats

A Quick-Reference Guide Based on Country of Residence

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