Joint accounts abroad and inheritance tax: What changes under Circular Ε.2015/2026

Author: Christina I. Kapela
Accountant – Tax consultant

A particularly significant development for taxpayers with bank deposits or investments abroad comes with the new Circular Ε.2015/2026, which clarifies the tax treatment of joint accounts when a co-holder dies.

The circular gives clear answers to an issue affecting thousands of families with assets outside Greece: when inheritance tax applies and when it does not.

The basic principle: A joint account with a survivorship clause does not form part of the estate.

Under the applicable legal framework, when a joint account includes a survivorship clause, its balance does not form part of the deceased’s estate.

This means that when a co-holder dies:

• The amount passes automatically to the surviving co-holders.
• No formal acceptance of the inheritance is required for this asset.
• No inheritance tax is imposed.

In essence, the survivor acquires the amount as a result of a separate, pre-existing contractual right, rather than as an heir.

The big change: Extension to accounts abroad

The circular’s most important point is its confirmation that the exemption is no longer limited to bank deposits in Greece.

The new interpretation covers:

• Bank accounts in Greece and abroad.
• Investment accounts and other financial products.
• Cases regardless of the co-holders’ tax residence.

In other words, the same tax treatment applies in Greece and abroad, which is particularly important for Greeks who hold assets with international banks or brokers, or on investment platforms.

Practical examples

• Example 1: Joint account in Switzerland

Two spouses hold a joint account at a Swiss bank with a survivorship clause. One of them dies.

The surviving spouse acquires the account balance without inheritance tax and without including the amount in the inheritance tax return.

• Example 2: Joint investment account

Two siblings hold a joint investment account with a broker abroad, with a corresponding contractual survivorship provision. When one dies, the securities and cash may pass to the survivor without inheritance tax.

• Example 3: Without a survivorship clause.

If there is no corresponding contractual provision, the deceased’s share is treated as part of the estate and taxed under the general provisions.

• Example 4: Death of the last surviving co-holder.

When only one account holder remains and that person dies, the balance forms part of their estate and is taxed in the usual way.

Conditions requiring attention:

The tax exemption does not apply automatically in every case. The following are required:

• A clear survivorship clause in the account agreement.
• A genuine joint account, rather than merely nominal participation.
• The ability to demonstrate the contractual relationship with the bank or financial institution.

If these conditions are not met, the tax administration may consider whether the transaction is a gift or a transfer by inheritance.

What this means for taxpayers

The circular is of particular practical importance to:

Estate Planning

Joint accounts can serve as a lawful mechanism for transferring assets quickly and without inheritance tax where the conditions are met.

International investment

People investing through foreign banks or brokers now have greater legal certainty.

Less bureaucracy

In many cases, lengthy procedures for accepting an inheritance and unresolved tax matters are avoided.

To conclude

Circular Ε.2015/2026 provides a significant clarification with important financial implications. It confirms that joint accounts and certain investment products with a survivorship clause do not form part of the estate and are therefore not subject to inheritance tax, whether held in Greece or abroad.

For taxpayers with international assets, the right legal and tax structure is now gaining even greater value.

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