Bosnia Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Bosnia has a relatively favourable tax regime for wealth transfer. There is no inheritance tax on assets inherited by direct family members (spouse, children, parents). Inheritance tax may apply to more distant relatives or non-relatives at modest rates (up to 5%). Gift tax is similar: gifts between close family members are generally exempt, while gifts to unrelated persons may be subject to tax. Each entity has its own inheritance and gift tax rules, but the overall treatment is similar. There is no estate duty on the deceased's estate.

Inheritance Tax — Exempt for Direct Family

Inheritance tax in Bosnia varies by entity but generally follows these principles:

• Spouse, children, parents — exempt from inheritance tax (Class I heirs)
• Grandchildren, siblings, grandparents — may be subject to tax at reduced rates (1-3%)
• Non-relatives — subject to inheritance tax at rates up to 5%
• Tax base — market value of inherited assets minus debts and funeral expenses

The exemption for direct family members effectively makes Bosnia an inheritance-tax-free jurisdiction for most family wealth transfers. Inheritance tax returns must be filed within 6 months of the death.

Gift Tax — Exempt for Close Family

Gift tax applies to transfers of property made during the donor's lifetime. The rates are similar to inheritance tax:

• Spouse, children, parents — exempt from gift tax
• Grandchildren, siblings — 1-3% gift tax
• Non-relatives — up to 5% gift tax
• Charitable donations — exempt if the charity is registered in Bosnia

Small gifts (typically under BAM 500-1,000) may be exempt. The donor is generally responsible for paying the gift tax. Gifts of real estate must be notarised and registered in the land registry.

Intestate Succession

If a person dies without a will (intestate), the estate is distributed according to the Law of Inheritance. The order of inheritance is:

• First order — children and spouse (equal shares)
• Second order — parents and siblings (if no children or spouse)
• Third order — grandparents and their descendants
• Fourth order — more distant relatives and, failing that, the state

The spouse inherits at least half of the estate if there are children, and the entire estate if there are no children or parents. The law also provides for a compulsory share for certain heirs (spouse, children, parents) that cannot be overridden by a will.

Wills & Probate

A valid will must be in writing, signed by the testator, and either handwritten entirely by the testator (holographic will) or notarised (official will). The testator must have testamentary capacity and must not be under duress. Probate is handled by the municipal court in the jurisdiction where the deceased was domiciled. The probate process involves verifying the will, identifying heirs, appraising assets, and distributing the estate. Foreign nationals with assets in Bosnia should have a local will to avoid complications.

FAQs

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

When you sell inherited property, you may be liable for capital gains tax on the difference between the sale price and the market value at the date of inheritance. The principal residence exemption may apply.

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

Gifts to direct family members (spouse, children, parents) are already exempt from gift tax. For other relatives, the rates are modest (1-5%).

Does Bosnia recognise foreign wills?

Foreign wills may be recognised in Bosnia but must go through the probate process in the local court. It is advisable to execute a separate Bosnian will for assets located in Bosnia.

Disclaimer

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