Inheritance and Gift Tax in Eritrea

Eritrea does not impose a separate inheritance or gift tax. Transfers of wealth through inheritance or gifts are generally subject to registration duties and, in certain circumstances, capital gains tax. This guide explains the tax implications of wealth transfers in Eritrea.

Inheritance Tax

Eritrea has no standalone inheritance tax. However, the transfer of assets upon death may trigger:

• Registration Duties: Real estate and certain other assets transferred through inheritance are subject to registration duties
• Capital Gains Tax: If the deceased's estate includes assets that have appreciated in value, the beneficiaries may be liable for capital gains tax upon eventual disposal
• Notary Fees: Legal fees for inheritance proceedings, typically 1–3% of the estate value

Gift Tax

Similarly, Eritrea does not impose a specific gift tax. However, gifts may be subject to:

• Registration Duties: Gifts of real estate are subject to registration duties
• Capital Gains: The donor may be liable for capital gains tax on appreciated assets transferred as gifts

Registration Duties on Transfers

The following rates apply to registration of asset transfers:

• Direct line inheritance (parents to children): 1% of asset value
• Inheritance between spouses: 1% of asset value
• Inheritance to siblings: 3% of asset value
• Inheritance to other relatives: 5% of asset value
• Inheritance to non-relatives: 10% of asset value
• Gifts of real estate: ~4% of property value

Exemptions and Reliefs

• Small gifts below specified thresholds are exempt
• Gifts to charitable organizations registered in Eritrea
• Household goods and personal effects

International Considerations

Only assets located in Eritrea are subject to local registration duties upon inheritance. Foreign assets inherited by Eritrea residents are not subject to Eritrean inheritance duties but may be taxed in the country where the assets are located.