Taxation of Foreign Estates refers to the process by which a country’s tax authority imposes taxes on the assets and income of individuals who are not residents of that country at the time of their death, but who have property or financial interests within the country’s borders.
In the context of the United States, for example, non-resident aliens may be subject to U.S. estate tax on their U.S.-situated assets, such as real estate or certain financial accounts. The estate tax is assessed based on the fair market value of these assets at the time of death, and specific exemptions and deductions may apply. The estate tax rate can vary based on the value of the estate, and tax treaties between countries may influence the overall tax liability.
It is important for foreign estate administrators and beneficiaries to understand the applicable laws and regulations to ensure compliance and optimize tax outcomes.
« Back to Glossary Index