Succession Law for International Families in Greece: Which Country’s Law Applies?

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Table of Contents

• Introduction
• Understanding Greek Succession Law
• EU Succession Regulation (Brussels IV)
• Determining Applicable Law
• Impact on International Families
• Estate Planning Considerations
• Greek Property Ownership and Succession
• Tax Implications
• Legal Challenges and Solutions
• Conclusion
• FAQs

Introduction

In an increasingly globalized world, international families face unique challenges when it comes to succession law. This is particularly true for those with connections to Greece, a country known for its rich history, beautiful landscapes, and attractive greek property for sale. As more people choose to invest in Greek real estate or retire in this Mediterranean paradise, understanding the intricacies of succession law becomes crucial.

This comprehensive guide delves into the complex world of succession law for international families in Greece, exploring which country’s law applies in various scenarios and how this impacts estate planning and inheritance. We’ll navigate through the labyrinth of Greek legal frameworks, EU regulations, and international conventions to provide you with a clear understanding of your rights and obligations.

Understanding Greek Succession Law

Greek succession law is rooted in the country’s Civil Code, which provides a framework for inheritance and estate distribution. Traditionally, Greek law has followed the principle of universal succession, meaning that heirs inherit not only the assets but also the liabilities of the deceased.

Key Principles of Greek Succession Law

• Forced Heirship: Greek law recognizes the concept of “forced heirship,” which reserves a portion of the estate for close family members, regardless of the deceased’s wishes.
• Intestate Succession: In the absence of a will, Greek law prescribes a specific order of inheritance based on family relationships.
• Testamentary Freedom: While limited by forced heirship rules, individuals have some freedom to distribute their assets through a will.

These principles form the foundation of Greek succession law, but the situation becomes more complex when international elements are introduced.

EU Succession Regulation (Brussels IV)

The landscape of succession law in Greece and other EU countries was significantly altered with the introduction of the EU Succession Regulation, also known as Brussels IV, which came into effect on August 17, 2015. This regulation aims to simplify cross-border inheritances within the EU.

Key Features of Brussels IV

• Unified Approach: The regulation establishes a unified system for determining which country’s law applies to a cross-border succession.
• Habitual Residence: The default rule is that the law of the deceased’s last habitual residence applies to the entire estate.
• Choice of Law: Individuals can choose to apply the law of their nationality to govern their succession.
• European Certificate of Succession: This document facilitates the recognition of heirs and executors across EU member states.

Brussels IV has significant implications for international families with connections to Greece and other EU countries, providing more clarity and flexibility in succession planning.

Determining Applicable Law

For international families, determining which country’s law applies to their succession can be a complex process. Several factors come into play:

Habitual Residence

Under Brussels IV, the default rule is that the law of the deceased’s last habitual residence applies. This concept goes beyond mere physical presence and considers various factors such as:

• Duration and regularity of stay
• Conditions and reasons for the stay
• Family and social relationships
• Employment and economic ties

Choice of Law

Individuals have the option to choose the law of their nationality to govern their entire succession. This choice must be expressly made in a declaration in the form of a disposition of property upon death, such as a will.

Property Location

While Brussels IV aims for a unified approach, the location of property can still play a role, especially for immovable property in non-EU countries or EU countries that have opted out of the regulation (e.g., Denmark, Ireland, and the UK).

Impact on International Families

The interplay between Greek succession law, EU regulations, and international elements creates a complex landscape for international families. Here’s how various scenarios might play out:

EU Nationals Residing in Greece

For EU nationals habitually resident in Greece, Greek succession law would apply by default unless they’ve chosen the law of their nationality. This means Greek forced heirship rules could impact their estate distribution.

Non-EU Nationals with Greek Property

Non-EU nationals owning property in Greece face a more complex situation. While Brussels IV applies to their Greek assets, their overall succession might be governed by the laws of their home country or country of residence.

Greek Nationals Living Abroad

Greek nationals living in other EU countries can choose Greek law to apply to their entire succession, preserving familiar legal principles. Without this choice, the law of their habitual residence would apply.

Estate Planning Considerations

Given the complexities of international succession law, careful estate planning is crucial for families with connections to Greece. Consider the following strategies:

• Draft a comprehensive will that addresses assets in all relevant jurisdictions
• Explicitly state your choice of law if you wish to deviate from the default rules
• Consider the implications of forced heirship rules if Greek law applies
• Explore the use of trusts or other legal structures to manage cross-border assets
• Regularly review and update your estate plan to reflect changes in personal circumstances or legal frameworks

Greek Property Ownership and Succession

Owning property in Greece adds another layer of complexity to succession planning. While Brussels IV aims for a unified approach, practical considerations often necessitate specific attention to Greek assets.

Registering Inheritance Rights

Heirs must register their inheritance rights with Greek authorities, a process that involves:

• Obtaining a Greek tax registration number (AFM)
• Filing an inheritance tax declaration
• Registering the inheritance with the local land registry or cadastre

Property Transfer Taxes

While inheritance tax rates in Greece are relatively low for close family members, property transfer taxes can be significant. Understanding these costs is crucial for effective estate planning.

Tax Implications

The tax landscape for international successions involving Greek assets can be complex, involving both Greek and foreign tax considerations.

Greek Inheritance Tax

Greek inheritance tax rates vary based on the relationship between the deceased and the heir, with close family members benefiting from higher tax-free thresholds and lower rates. However, the tax applies to worldwide assets for Greek tax residents.

Double Taxation Issues

International families may face double taxation on inherited assets. While Greece has double taxation treaties with several countries, not all cover inheritance taxes. Careful planning and professional advice are essential to navigate these issues.

Legal Challenges and Solutions

International successions often present unique legal challenges. Common issues include:

• Conflicts between different legal systems
• Difficulties in proving foreign legal documents
• Complexities in administering estates across multiple jurisdictions

To address these challenges, consider the following solutions:

• Seek advice from legal professionals familiar with both Greek and international succession law
• Utilize the European Certificate of Succession for EU-wide recognition of heir status
• Consider appointing executors in relevant jurisdictions to manage local assets
• Explore bilateral agreements between Greece and other countries that may simplify legal processes

Conclusion

Navigating succession law for international families with connections to Greece requires a nuanced understanding of multiple legal frameworks. The interplay between Greek law, EU regulations, and international conventions creates a complex landscape that demands careful planning and expert guidance.

By understanding the principles of applicable law determination, considering the unique aspects of Greek property ownership, and addressing potential tax and legal challenges, international families can create robust estate plans that protect their assets and honor their wishes across borders.

As global mobility continues to increase and cross-border investments become more common, the importance of informed succession planning cannot be overstated. Whether you’re a Greek national living abroad, an EU citizen with property in Greece, or a non-EU national considering Greek investments, taking proactive steps to understand and navigate the relevant legal frameworks will ensure a smoother succession process for your loved ones.

Remember, while this guide provides a comprehensive overview, succession law is a complex and evolving field. Always consult with qualified legal and tax professionals to address your specific situation and ensure your estate plan aligns with your unique circumstances and goals.

FAQs

1. Can I avoid Greek forced heirship rules if I own property in Greece?

While Greek forced heirship rules are stringent, EU citizens not habitually resident in Greece may be able to avoid them by choosing the law of their nationality to govern their entire succession under Brussels IV. However, this requires careful planning and explicit declaration in a will or similar document.

2. How does Greek inheritance tax apply to non-resident heirs?

Non-resident heirs are subject to Greek inheritance tax only on assets located in Greece. The tax rates and exemptions are the same as for residents, but the administrative process may be more complex, often requiring the appointment of a fiscal representative in Greece.

3. Can a foreign will be recognized in Greece?

Yes, foreign wills can be recognized in Greece, provided they meet certain formal requirements. The will must be valid under the law of the country where it was made, the country of the testator’s nationality, or the country of the testator’s habitual residence. It’s often advisable to have the will translated into Greek and apostilled for easier processing by Greek authorities.

4. How does the European Certificate of Succession work in Greece?

The European Certificate of Succession is fully recognized in Greece and can be used to prove one’s status as an heir or executor. This certificate simplifies the process of claiming inheritance rights across EU member states, including Greece, by providing a standardized document that doesn’t require further legalization.

5. What happens if I die without a will and own property in Greece?

If you die intestate (without a will) and own property in Greece, the distribution of your Greek assets will typically be governed by Greek intestate succession rules, unless Brussels IV dictates otherwise based on your habitual residence. Greek intestate succession follows a specific hierarchy of heirs, with closer relatives generally taking precedence. It’s important to note that this may result in a distribution that doesn’t align with your wishes, underscoring the importance of proper estate planning.

Article reviewed by MDavid Cohen, Chief Strategy Officer | Architect of Scalable Growth for Tech Startups, on March 25, 2025