🦊 Expat Tax Tip #19 – Inheritance, Estate & Gift Taxes for Expats

Many expats assume that inheritance, estate, or gift taxes won’t apply if they live overseas. Unfortunately, multiple countries may claim taxing rights — both your home country and your host country. That’s why it’s critical to know the rules where you live and where your assets or heirs are located.

• Australia (ATO): Australia does not have a federal inheritance tax, but capital gains tax (CGT) may apply when beneficiaries dispose of inherited assets. ATO – Inherited Assets & CGT
• Canada (CRA): Canada also has no estate or inheritance tax. Instead, there’s a deemed disposition at death — assets are treated as if sold at fair market value, creating possible capital gains tax. CRA – Tax Implications When Someone Dies
• U.S. (IRS): The U.S. imposes an estate tax on worldwide assets of U.S. citizens and domiciliaries, and gift tax may apply during life. Thresholds are high, but reporting is strict. IRS – Estate Tax, IRS – Gift Tax

📘 For practical strategies to protect your estate, see my Australia Expat Tax Guide and Canada Expat Tax Guide.

👉 Tip: Always review whether your home country has an estate tax treaty with your host country. These treaties can sometimes prevent double taxation on inheritances.

🌐 External Resource: OECD – International tax principles and OECD – Tax Transparency.

🔗 Please refer to this page to see all my other expat tax tips.

Tags: Expat Taxes, Inheritance Tax, Estate Tax, Gift Tax, Capital Gains Tax, ATO, CRA, IRS, OECD, Cross-Border Estate Planning