Bolivia Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Bolivia has a favourable tax regime for wealth transfer: there is no inheritance tax, no estate duty, and no death tax on assets transferred upon death. However, gifts made during the lifetime of the donor are subject to the ITGB (Impuesto a la Transmisión Gratuita de Bienes) at 3% of the property value. The absence of inheritance tax makes Bolivia attractive for high-net-worth individuals to hold assets, although other tax considerations (such as capital gains tax on eventual disposal by heirs) apply. Upon death, assets pass directly to heirs at the deceased's cost base for tax purposes (no step-up to market value). The Bolivian Civil Code governs succession, including forced heirship rules that protect certain family members.

Gift Tax — ITGB 3%

The ITGB (Impuesto a la Transmisión Gratuita de Bienes) applies to gratuitous transfers of property, including gifts and inheritances. However, inheritances are exempt from ITGB, meaning the tax effectively applies only to lifetime gifts. Key features of the gift tax:

• Rate — 3% of the market value of the gifted property
• Applicable to — real estate, vehicles, shares, and other significant assets
• Exemptions — gifts between spouses, gifts to direct descendants (children, grandchildren) up to a threshold, charitable donations
• Payment — the donor (or donee, depending on arrangement) must pay the tax and register the transfer

Cash gifts below a certain threshold are generally exempt. The ITGB must be paid before the transfer can be registered with the relevant authority. Annual gift exemptions may apply for small periodic gifts.

Inheritance — No Tax on Death

Bolivia does not impose inheritance tax, estate duty, or any death-related tax. Assets transferred upon death pass directly to the heirs without any tax liability at the time of transfer. However, the heirs inherit the assets at the deceased's cost base (no step-up in basis). This means that when the heir eventually sells the inherited asset, they will pay capital gains tax on the full gain from the original acquisition cost. For example, if the deceased bought land for BOB 100,000 and it is worth BOB 500,000 at death, the heir inherits it with a cost base of BOB 100,000. On sale for BOB 500,000, the heir pays tax on BOB 400,000 gain.

Succession Law & Wills

The Bolivian Civil Code governs succession. Bolivia has forced heirship rules that reserve a portion of the estate for certain family members (legitima). The forced heirs include:

• Spouse and children — entitled to a compulsory share of the estate (typically 50% divided among them)
• Parents and ascendants — entitled if there is no surviving spouse or children

A will (testamento) allows the testator to distribute the free portion of the estate (the portion not subject to forced heirship) as they wish. Types of wills recognised in Bolivia include open wills (ante notario), closed wills, and holographic wills. Probate is the legal process of recognising the will and granting the executor authority to distribute assets. The process involves applying to the competent court and can take 3–12 months. Foreign nationals with assets in Bolivia should have a separate Bolivian will covering their Bolivian assets to avoid delays and conflicts of law.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, capital gains tax at the applicable rate (13% RC-IVA or 25% IUE) applies on the gain (selling price minus the deceased's original cost base — no step-up in basis). Consider holding the property as your primary residence to potentially qualify for exemptions.

Is there a way to avoid gift tax when transferring assets to family?

The ITGB rate is relatively low at 3%, and exemptions exist for transfers between spouses and direct descendants up to certain thresholds. For larger transfers, structured sales at market value may be considered but will trigger capital gains tax.

Does Bolivia recognise foreign wills?

Foreign wills may be recognised in Bolivia but must go through the probate process in Bolivia to be effective for Bolivian assets. It is generally advisable to execute a separate Bolivian will for assets located in Bolivia.

Disclaimer

This guide provides general information about Bolivian inheritance and gift tax for the 2026 tax year. Succession law is complex and intersects with civil code provisions. Always consult with a qualified Bolivian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.