By Circular 2015/2026, the Independent Authority for Public Revenue (AADE) clarifies that, when a co-holder of a joint bank account dies, the funds or other financial products may pass to the surviving co-holders without inheritance tax. This applies only if the account contains a special clause providing that, in the event of the death of one co-holder, the balance automatically passes to the other co-holders. In such a case, the amounts are not considered part of the deceased’s estate. The regulation is based on Articles 2 and 3 of Law 5638/1932 and is now provided for in Article 75 paragraph 2 case b of Law 5219/2025.

The exemption concerns both joint cash deposits and joint accounts of other financial products, whether in Greece or abroad. For this reason, it is more appropriate to use the term “other financial products” rather than the general term “investments”. The key point to be checked is the agreement with the bank, credit institution or entity maintaining the product. If there is no clause providing for automatic transfer to the surviving co-holders, the exemption from inheritance tax cannot be taken for granted. The exemption does not apply if the account is maintained in a non-cooperative tax jurisdiction or in a state that does not cooperate with Greece in tax matters in the prescribed ways. It also applies only until the last surviving co-holder and only to the automatic transfer of the account to that person. After the death of the last co-holder, the general rules on inheritance taxation apply.

As regards businesses and professional accounts, Circular 2015/2026 does not regulate matters such as the taxation of corporate funds, accounting treatment, the classification of income or expenses, or the use of a professional account. These matters are examined separately. Specifically with regard to professional accounts, Circular E.2037/2019 clarifies that a joint bank account may be declared as a professional account by only one co-holder. Therefore, if a joint account is also used as a professional account, the following must be examined separately: on the one hand, the exemption from inheritance tax, and, on the other hand, the proper declaration and use of the account as a professional account.

The same position is also confirmed by case law. In particular, the Athens Administrative Court of First Instance held that a joint bank deposit is not taxed as an inheritance where the additional clause under Law 5638/1932 exists, namely that, upon the death of one co-holder, the account automatically passes to the surviving co-holders. Thus, the amounts already existing in the account at the time of death are not considered taxable inherited property.

In conclusion, the exemption from inheritance tax applies where there is a joint account of a cash deposit or other financial products, with two or more co-holders, containing a clause for automatic transfer to the surviving co-holders, provided that the account is not maintained in a state excluded by the provision. The exemption concerns only the automatic transfer to the surviving co-holders, up to the last of them.