The Ministry of Justice is introducing innovative reforms to Inheritance Law, 80 years after its implementation, via a committee led by law professor Apostolos Georgiadis, to finish its work by late October. For the first time, the system of inheritance contracts will be established, meaning that the testator may distribute property during life outside the rules of the legal share, while the spouse’s legal share rises to 33.3% from 25%.

Also, there is a solution for disclaiming inheritances due to debts of the deceased. Heirs will be able to accept the inheritance but will be obligated to pay off the debts by selling inherited real estate up to its value, so as not to be burdened with all the debts. Every day, estates are lost and fall to the State because properties remain unused due to debts left by the deceased, forcing heirs to disclaim the inheritance to avoid taking on those liabilities.

When the deceased has debts to banks, the tax authority, from shareholdings in companies, etc., but also owns property, heirs may accept the inheritance but will be liable only to repay debts by disposing of the inherited real estate—up to its value—while any remaining debt is written off. If the estate’s value exceeds debts, whatever remains after repayment goes to the heirs.

Handwritten Wills

This ends much speculation about handwritten wills. They remain valid: anyone can write their will and keep it at home or deposit it with a notary. However, to avoid forged wills, handwritten wills not deposited with a notary but produced by relatives must be declared genuine only after graphological analysis and witness testimony.

The new Code of Civil Procedure introduced changes in inheritance procedure, including that wills will now be published via electronic platforms by notaries, and inheritance certificates will be issued by lawyers instead of magistrates.

Inheritance Contracts

The institution of inheritance contracts will allow the testator, while alive, to freely agree with heirs (spouse, cohabitant, children, grandchildren etc.) on how to divide their estate, outside the rules of the legal share. Once such a contract is signed by future heirs, it will protect against lawsuits after death.

The testator may offset gifts (property, money, etc.) already given (e.g. dowry). The testator may leave someone a larger portion if that person agrees to care for him (or his spouse) later.

Also, the spouse may agree that her share be split equally among children, provided if she is not receiving a pension, the children promise to ensure her a decent income. Once the inheritance contract is signed and the testator dies, the contract becomes binding on all heirs and legal share restrictions no longer apply.

Legal Share

A significant change is the increase in the surviving spouse’s legal share. The legal share is the minimum portion guaranteed by law to relatives: spouses, children, parents. Currently, the surviving spouse receives 25% and children 75%. Now, the spouse’s share increases to 33.3%, leaving 66.7% to the children. The committee raised the legal share by 8.3%, reasoning the surviving spouse needs greater protection.

Another change: if there is a valid will and one relative is excluded, that person does not gain rights to real estate but is entitled to compensation. For example, if a deceased leaves property to one child and nothing to the other, the latter may demand 25% of the property’s value in cash.

Thousands of Parental Gifts Under Scrutiny by Tax Authorities

The Independent Authority for Public Revenue (AADE) is targeting tax‑free transfers of assets up to €800,000 among first‑degree relatives. Instruments meant for first‑home acquisition by children have become attractive to unscrupulous parties, using techniques like triangular or chain gifting.

The need to modernize Greece’s outdated inheritance law is edging toward fulfillment, as necessary legal modifications are nearing completion. At the same time, a parallel reality exists beyond pure law — the taxation of assets passed via inheritance and parental gifts. According to data from the myProperty platform, these have been steadily rising. Between January and July 2025, about 60,000 gift declarations were filed, while public revenue from inheritance taxation approaches €150 million annually.

The upcoming enactment of the revised Inheritance Law will significantly reshape this area, particularly parental gifts. The revised law includes necessary adjustments for key issues arising repeatedly, such as outdated disposal restrictions by the testator, redefining “legal share,” debt inheritance, and more.

Inheritance matters — especially their taxation — are under intense debate domestically and internationally. In that sense, reforming the relevant law ties into fiscal and tax policy, but also into the daily life of citizens and even demographics, since inheritance often determines living conditions and family planning.

In that environment, parental gifts are one of the most impacted areas. Because they concern hundreds of thousands of Greeks, they often become a cat-and-mouse game between the State and individuals trying to evade taxation by exploiting loopholes. The most important of these exemptions is the €800,000 tax-free limit for transfers between first-degree relatives.

Parental Gift, or Otherwise Dowry

The 8,000 cases mentioned earlier, in which existing legislation was violated during the execution of a parental gift, were identified by the Independent Authority for Public Revenue (AADE) using the method of encirclement, as the Authority does not rely solely on simple, one-dimensional audits. Alongside each declaration of a parental gift, related property transfer contracts are cross-examined, together with the tax history of the property—at least for the past five years—and the confirmation that it is not burdened with ENFIA (property tax) debts, among other factors.

The new methodology employed by the State—thanks to new technological tools—proves generally smarter than the tricks of those who attempt to avoid taxation on parental gifts. Tax authorities can trace the flow of money and determine whether a gift was fictitious and therefore fraudulent.

For example, if within the same family there are sequential transfers—from one child to the parent and then from the parent to another child—the time between the two actions is examined, along with whether any high-value asset was acquired. Since the authorities have seen hundreds of cases where children play “give-and-go” (to borrow a football term) with parents and siblings, digital tools now make it easy to detect whether, for instance, one child bought a house bankrolled by a sibling.

Since these actions are completed within a few months, the automation of the digital platform where parental gift declarations are submitted immediately flags suspicious cases, “red-flagging” the relevant file. The donor’s source of funds (pothen esches) is also examined, and it goes without saying that banks play a critical role in this auditing ecosystem. If there is no evidence that the monetary gift was conducted via bank transfer, as required by law, the tax is imposed automatically, even if the amount is under the €800,000 tax-free threshold.

Thus, the parental gift serves as both a trigger and starting point for a multi-level tax compliance check of all parties involved—both the donor and the recipient, i.e., the person benefiting from this modern version of the dowry.

AADE Is Watching

As of September, the launch of the akinita.gov.gr platform and the introduction of the Digital Property File dramatically simplify the entire process, both for the State, which conducts the audits, and for citizens making parental gifts for property purchases. After all, one of the State’s aspirations behind encouraging parental gifts is to help alleviate the serious housing problem.

That’s why parental gifts used by a child to acquire a first home are initially exempt from taxation, under specific conditions. According to the Inheritance, Donations, Parental Gifts, and Gambling Winnings Tax Code, this exemption applies to Greek citizens and citizens of EU or EEA member states, regardless of whether they reside permanently in Greece.

One unchanging principle—regardless of how many legal or tax reforms occur—is that tax exemptions for parental gifts only apply to Category A relatives, namely:

1. Spouse or partner in a civil union,
2. Children of the donor,
3. Grandchildren,
4. The donor’s parents.

All other relatives, in cases involving gifts of real estate or movable assets, are subject to taxation.

A “Red Flag” Until Proven Otherwise

A critical and often overlooked point in the process of parental gifts is this: until the competent authority decides whether the file is fully legal and in order, the recipient of the gift has no guarantee that their tax exemption will be approved. If not, they will be required to pay the applicable tax, depending on the specifics of the case.

This is because parental gift declarations are not audited at the time of submission. The law does not require the declarant to submit supporting documents for tax compliance up front. As a result, one might detect a hint of cunning on the part of the State—a trap for those who, acting carelessly, attempt to circumvent the law. Even though the lack of an automated filter for incomplete or irregular declarations seems like an oversight, in practice it functions as a post-submission audit mechanism.