Are you inheriting an apartment, a house, or savings? Remember that the inheritance must be reported to the tax office.

If you inherit an apartment, house, savings, or other assets, remember that you must report the inheritance to the tax office. This notification is crucial to taking advantage of any tax benefits.

When do you have to report an inheritance?

If you inherit from your immediate family (so-called zero group) and want to benefit from the total exemption from inheritance and gift tax, you are required to submit form SD-Z2.
You have 6 months to do this from the date the court decision on the acquisition of inheritance becomes final or from the date the deed of inheritance certification is registered with a notary.

This is an important issue – after this date, the immediate family may lose the right to exemption.

What to do if you are not part of your immediate family?

If you are not an immediate family member and the inheritance does not fall within the exemption limit, then you must file an SD-3 return and settle the inheritance tax.

What happens if you don't report your inheritance on time?

Failure to report the acquisition of an inheritance within the appropriate timeframe may have serious consequences:

1. Loss of the right to exemption – the tax office will determine the amount of tax on the so-called pure value of the inheritance, i.e. the value of inherited items and rights reduced by debts and liabilities.
2. Higher market value – tax will be determined based on market prices on the date of invocation of acquisition, which may be higher than when you actually received the inheritance.
3. Tax proceedings – failure to report an inheritance on time may result in the initiation of tax proceedings.
4. Criminal and fiscal liability – in the case of larger amounts, improper declaration of inheritance may lead to criminal and fiscal liability.

How to avoid problems?

That's why it's so important to always check when acquiring an inheritance whether you're required to report it to the tax office, by what deadline, and on what form. Note that tax offices constantly review inheritance declarations, looking for potential revenue for the budget.

If you're unsure whether you need to report an inheritance or aren't sure how to fill out the form correctly, contact our office – we'll help you avoid problems and navigate the formalities safely and legally.