Since the end of inheritance and gift tax in 2008, there has been hardly any data on the distribution and volume of inheritances in Austria. Voluntary household surveys capture past inheritances, but there is a lack of current values as well as forecasts on the future development of inheritances. Using data from the Household Finance and Consumption Survey (HFCS) and the microsimulation model INTAXMOD, this paper estimates the annual inherited wealth and the potential tax revenue up to 2050. The results show (a) a doubling of the annual inheritance volume between 2025 and 2050 from approximately €21 to 41 billion, (b) a strong concentration in the upper percentile of the inheritance distribution, and (c) potential tax revenues of over €1 billion per year from inheritance taxes with tax exemption of €1 million.
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- Pages
- 25
- Published in
- Belgium
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- https://ec.europa.eu/info/legal-notice_en#copyright-notice
Table of Contents
- 1 Introduction 7
- 2 Data and methodology 8
- 2.1 Household Finance and Consumption Survey (HFCS) 8
- 2.2 The Inheritance Tax Simulation Model (INTAXMOD) 9
- 2.3 Tax scenarios 10
- 3 Results of the simulation 13
- 3.1 Volume and distribution of inheritances 13
- 3.2 Revenue and distribution of inheritance taxes 14
- 4 Conclusions 17
- References 18
- List of abbreviations and definitions 20
- List of figures 21
- List of tables 22
- Annexes 23
