Inheritance and Gift Tax in Guinea-Bissau

Guinea-Bissau 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 Guinea-Bissau.

Inheritance Tax

Guinea-Bissau 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, Guinea-Bissau does not impose a specific gift tax. However, gifts may be subject to:

• Registration Duties: Gifts of real estate are subject to registration duties at 5%
• Capital Gains: The donor may be liable for capital gains tax on appreciated assets transferred as gifts
• Notarization Costs: Gifts typically require a notarized deed

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: 5% of property value

Exemptions and Reliefs

• Small gifts (under 100,000 XOF per year per recipient) are exempt
• Gifts to charitable organizations registered in Guinea-Bissau
• Life insurance proceeds paid to named beneficiaries
• Household goods and personal effects up to 500,000 XOF

International Considerations

Guinea-Bissau's territorial tax system means that only assets located in Guinea-Bissau are subject to local registration duties upon inheritance. Foreign assets inherited by Guinea-Bissau residents are not subject to Guinea-Bissau inheritance duties but may be taxed in the country where the assets are located.

Planning Considerations

• Consider lifetime gifting strategies to reduce future estate exposure
• Use of wills and succession planning to ensure smooth asset transfer
• Review of asset ownership structures (joint ownership, trusts, companies)
• Consideration of life insurance as a tax-efficient wealth transfer vehicle
• Professional advice recommended for complex international estates