Around 20 countries charge no inheritance or estate tax on death, from Australia and Canada to Portugal and Singapore. For anyone connected to England and Wales the label can mislead: several of those countries tax death another way, and UK inheritance tax can follow you for years after you leave. Many competing lists still say UK exposure turns on domicile, which stopped being true on 6 April 2025.
Which countries have no inheritance tax?
At least 20 countries levy no inheritance or estate tax, including Australia, New Zealand, Canada, Norway, Sweden, Austria, Estonia, Portugal, Singapore, Hong Kong, Israel and the United Arab Emirates. Several abolished the tax in the 2000s. The table below shows what each charges on death instead, because few of these places are genuinely tax-free.
| Country | Inheritance or estate tax? | What may be charged on death instead |
|---|---|---|
| Australia | None | Capital gains can arise when inherited assets are later sold, or on ceasing residence |
| Canada | None | Deemed disposal: capital gains tax on the estate's assets at market value at death |
| New Zealand | None | No general capital gains tax on death |
| Portugal | None (no true inheritance tax) | 10% stamp duty for beneficiaries outside the direct line; spouses, children and parents are exempt |
| Sweden | None (abolished 2005) | Capital gains may carry over to heirs |
| Austria | None (abolished 2008) | Real-estate transfer tax can apply |
| Norway | None (abolished 2014) | Heirs inherit the deceased's cost base for future capital gains |
| Singapore | None (abolished 2008) | Generally none on inherited assets |
| Hong Kong | None (abolished 2006) | Generally none on inherited assets |
| UAE | None | Sharia rules can govern succession unless a registered will is in place |
Sources: national tax authorities and Tax Foundation, estate and inheritance taxes around the world, as at August 2026, subject to change.
The United States is often placed on these lists by mistake. It has a federal estate tax charged at up to 40%, though the exemption is high, at 15 million US dollars per person for 2026 (Congress.gov, as at August 2026, subject to change). Some US states add their own estate or inheritance tax.
Why does "no inheritance tax" not mean tax-free?
Because many of these countries tax death through a different route. The most common is capital gains: Canada treats an estate as if it sold everything at market value on the day of death, and Australia can tax gains when heirs later sell. Others use a stamp duty or transfer tax that lands on the same event an inheritance tax would.
Local succession law can also override your wishes. Civil-law countries such as France and Spain apply forced heirship, where a fixed share must pass to children or a spouse whatever your will says. Our guides to French inheritance tax for UK owners and Spanish inheritance tax for UK owners cover how that works in practice. In many cases the headline "no inheritance tax" hides a real cost somewhere else.
Does moving abroad remove UK inheritance tax?
Not straight away, and often not for years. The point most competing guides get wrong is that they still tie UK exposure to domicile. Since 6 April 2025 it turns on long-term residence instead: if you have been UK resident for at least 10 of the previous 20 tax years, your worldwide estate stays within UK inheritance tax (gov.uk, as at August 2026, subject to change).
That exposure then continues for a run-off period, often called the tail, after you emigrate.
- Someone UK resident for 10 to 13 of the previous 20 tax years keeps worldwide exposure for 3 years after leaving.
- For each extra year of residence beyond 13, add one year to the tail, up to a maximum of 10 years.
- During the tail, a death brings your worldwide estate into UK inheritance tax even if you live and are taxed in a country with no inheritance tax.
- After the tail ends, only your UK-situated assets stay within the UK charge.
Our guide to domicile and inheritance tax explains the 2025 change in full.
Which of your assets stay within UK inheritance tax wherever you live?
UK-situated assets remain within UK inheritance tax regardless of where you live or how long you have been away. This is decided by situs, meaning where the asset sits, not by your residence. UK land and property are the clearest example and cannot be moved out of scope by emigrating.
So a former UK resident living in a no-inheritance-tax country still faces a 40% charge on a UK home or UK land above the available allowances. Shares in UK companies and some other UK assets can also be caught. Mapping which assets are UK-situated is usually the first step in any cross-border plan; see our international and cross-border estate planning guide.
What UK thresholds still apply?
The standard UK allowances apply to any estate still within the charge. There is a £325,000 nil-rate band, plus a residence nil-rate band of up to £175,000 where a home passes to direct descendants, with 40% charged above them (36% if at least 10% of the estate goes to charity).
Together these can shield up to £500,000 for a single person leaving a home to children, or up to £1,000,000 for a couple. All three figures are frozen until 5 April 2031, after the freeze was extended at the November 2025 Budget (gov.uk, Inheritance Tax rates and allowances, as at August 2026, subject to change). See our inheritance tax overview for how the bands combine.
What should UK families with an overseas dimension do?
Start by checking whether UK inheritance tax still reaches your estate, because that depends on your long-term residence rather than where you now live. Then plan around what actually applies to your assets rather than the headline in a country list. These are the practical steps we take clients through, and each one may need local advice.
- Count your UK residence over the past 20 tax years to see whether you are a long-term resident and, if you have left, where you sit in the 3 to 10 year tail.
- List every asset by country, marking which are UK-situated and so caught whatever your residence.
- Check what the destination country charges on death instead, such as capital gains, stamp duty or a forced-heirship rule.
- Review your will, and consider a separate local will where you hold foreign assets, drafted so neither revokes the other. Our guide to how to write a will is a useful starting point.
- Take advice in each country involved before acting, because the tax and succession outcomes can differ.
Frequently asked questions
These are the questions we are asked most about countries with no inheritance tax. Each answer reflects the law of England and Wales, current to the November 2025 Budget, and describes general rules rather than advice on your own estate.
Can you avoid UK inheritance tax by moving abroad?
Not simply by leaving. If you have been UK resident for at least 10 of the previous 20 tax years, your worldwide estate stays within UK inheritance tax, and that exposure continues for 3 to 10 years after you emigrate. UK-situated assets such as property remain taxable whatever your residence. Moving to a country with no inheritance tax can help in the long run, but only after the residence tail has ended (gov.uk, as at August 2026, subject to change).
Does the United States have inheritance tax?
The United States has no federal inheritance tax, but it does have a federal estate tax charged at up to 40% above an exemption of 15 million US dollars per person for 2026. A handful of US states also levy their own estate or inheritance tax. For that reason the US is not a no-inheritance-tax country, despite often appearing on such lists (Congress.gov, as at August 2026, subject to change).
Does Portugal have inheritance tax?
Portugal has no true inheritance tax. Instead it charges a 10% stamp duty on Portuguese assets passing to beneficiaries outside the direct line, such as siblings, unmarried partners or friends. Spouses, children and parents are exempt. A long-term UK resident's Portuguese assets can still fall within UK inheritance tax, with double taxation relief usually easing any overlap.
Which European countries have no inheritance tax?
Within Europe, Austria, Estonia, Norway and Sweden charge no inheritance or estate tax, and Portugal has no true inheritance tax for direct family. Several abolished the tax in the 2000s. Other death-related charges, such as capital gains or transfer taxes, can still apply, so it is worth checking each country's wider rules rather than the headline alone.