Inheritance taxation in Europe: Long-term developments and some empirical findings

Since inheritances and their concentration are growing, inheritance taxes have been attracting increasing interest recently. Inheritance taxes are relatively widespread in Europe, being levied in 17 EU member states and a further ten European countries. Behavioral responses, tax design, and institutional factors limit revenue and the distributional effectiveness of inheritance taxes. An appropriate tax design and institutional framework can support revenue generation and redistribution through inheritance taxes. Inheritance taxes need to be embedded in a broad-based policy mix addressing inequality of wealth and opportunity.