Transfer of capital without taxes: how to plan inheritance in 2025

To minimise tax losses, it is necessary to plan a capital transfer strategy in advance. In this article, we will examine the main approaches to inheritance planning, taking into account the latest changes in legislation. Understanding how inheritance tax works and what strategies exist for its minimisation is key to effective estate planning.

New Inheritance Law 2025

In 2025, significant changes to the inheritance law come into force, concerning taxation and the procedure for inheritance. These changes are aimed at simplifying the inheritance process and reducing the tax burden on heirs. The new law introduces changes to inheritance taxation, which will directly affect the amount heirs receive after paying taxes. In particular, the inheritance tax will be revised, which may lead to a reduction in the tax burden for certain categories of citizens. The changes will affect both real estate and financial assets, which requires careful estate planning to minimise tax losses.

New rules for different categories of heirs

The law also introduces new rules for various categories of heirs, which may affect the procedure for inheritance. In particular, additional benefits will be introduced for certain categories of citizens, such as close relatives. Understanding these changes is key to effective estate planning and minimising tax risks.

Overall, the new inheritance law of 2025 requires careful study and planning for those who are about to inherit. Changes in taxation and new rules for heirs open up opportunities for optimising tax payments.

Tax aspects of inheritance in 2025

In 2025, new rules concerning inheritance tax come into force, which will significantly change the approach to estate planning. The new inheritance law introduces significant changes to the tax aspects of inheritance, aimed at optimising tax obligations.

Threshold values for tax-free inheritance

According to the new law, the threshold values for tax-free inheritance will be increased, allowing a greater number of heirs to avoid paying inheritance tax.

This change will affect both direct heirs and other categories of inheritance recipients.The new law also provides benefits for close relatives who receive an inheritance.

Close relatives will have the right to more significant tax deductions, which will reduce their tax burden.

Overall, the new inheritance law is aimed at supporting citizens and creating more favourable conditions for the transfer of property.

Strategies for Tax-Free Transfer of Property

Strategies for minimising taxes when transferring property are a key aspect of estate planning. In this section, we will examine effective methods that allow preserving capital for future generations.

There are certain limits on tax-free gifting of property. According to legislation, close relatives can receive property as a gift without paying personal income tax. However, for other individuals, tax benefits may apply with certain restrictions.

The documentary formalisation of a gift is an important stage in the transfer of property. For this, it is necessary to draw up a gift agreement, which must be notarised. This will ensure the legal clarity of the transaction and help avoid possible disputes in the future.

The use of trusts is an effective tool for minimising taxes when transferring property. There are various types of trusts, such as revocable and irrevocable trusts, each of which has its own advantages and features. The correct choice of trust can significantly reduce tax liabilities.

The creation of a family trust is another strategy for managing and transferring property. Family trusts not only allow for minimising taxes but also maintaining control over assets, distributing them among family members in accordance with established rules.

In aggregate, these strategies allow for effective inheritance management and minimisation of tax losses, ensuring financial security for future generations.

Legal tools for estate planning

Legal instruments play a key role in estate planning, ensuring the transfer of assets without excessive tax losses. They help create a clear plan for the distribution of property, minimising potential disputes and ensuring the fulfilment of the testator’s will.

A will must comply with certain requirements regarding form and content. It must be drawn up in written form and signed by the testator in the presence of witnesses. The content of the will must clearly define the property being transferred to the heirs and specify their names.

Notarial certification is an important step in the process of estate planning. The notary verifies the authenticity of the will and certifies the identity of the testator. After this, the will is registered in the relevant register, which ensures its legal validity and facilitates inheritance.

The use of legal tools for estate planning allows not only the minimisation of tax obligations but also ensures transparency and legitimacy in the process of asset transfer.

Transfer of business and investments without tax losses

The transfer of business and investments without tax losses requires the use of effective legal and financial instruments. In particular, business owners can use various corporate structures to minimise tax liabilities.

The use of corporate structures, such as offshore companies or trusts, can help reduce tax losses when transferring businesses and investments. For example, establishing a holding company in a jurisdiction with a favourable tax climate can decrease inheritance tax.

Moreover, the restructuring of a business using tools such as joint-stock companies or limited liability companies can provide additional tax benefits.

Family Limited Partnerships (FLP) are another effective tool for minimising tax losses. FLP allow the transfer of assets to heirs while retaining control over property management.

The use of FLP can also provide protection from creditors and reduce tax liabilities due to the ability to distribute income among family members.

In conclusion, the transfer of business and investments without tax losses requires careful planning and the use of appropriate legal and financial instruments. Corporate structures and family limited partnerships are effective strategies for minimising inheritance tax.

The procedure for inheritance under the new rules

From 2025, the procedure for inheritance will undergo significant changes in accordance with the new legislation. These changes are aimed at simplifying the process and protecting the rights of heirs.

To inherit, it is necessary to complete a number of legal formalities. First of all, the heirs need to gather a specific set of documents.

Common mistakes in estate planning

Errors in estate planning can lead to significant financial losses for heirs. In 2025, new rules concerning inheritance tax come into force, which must be taken into account when planning.

One of the common mistakes is ignoring the new inheritance law. Changes in legislation can significantly affect the inheritance process, and a lack of knowledge about these changes can lead to unpleasant consequences.

Another common mistake is underestimating inheritance tax. Incorrect planning can lead to heirs facing unexpected tax liabilities.

To avoid mistakes in estate planning, it is necessary to consult professionals who have experience in the field of inheritance law and taxation.

Thorough planning and knowledge of the new inheritance and tax law will allow minimising risks and ensuring the financial security of heirs.

Jurisdictions with zero inheritance tax: opportunities and limitations

For wealthy families, the key criterion when choosing a country for residence or conducting business becomes inheritance and gift taxation. In a number of jurisdictions, such taxes are either completely absent or applied only in exceptional cases.

Vanuatu is one of the few countries where there is no inheritance tax, gift tax, or capital gains tax.

Singapore abolished the inheritance tax back in 2008. At the same time, the country offers a stable legal system and a developed financial infrastructure.

The UAE also does not tax inheritance, although administrative fees may apply when transferring real estate.

Malta does not impose an inheritance tax, but there is a stamp duty on the transfer of certain assets.

Portugal does not tax direct inheritance between close relatives, although there is a “penalty” tax on gifts between unrelated individuals.

However, it is important to remember: zero tax does not always mean the absence of other obligations. When choosing a jurisdiction, it is necessary to consider:

• Tax residency of the testator and the heir.
• Centre of vital interests (vital interests).
• Requirements for financial reporting and reporting under CRS/FATCA.

Why do wealthy people choose a second citizenship as a tool for capital protection?

Wealthy families are increasingly using second citizenship not as a luxury, but as a strategic tool for protecting assets and the future of their children. In conditions of political instability, tightening tax control, and global financial transparency, citizenship of another country is flexibility, security, and freedom of choice.

Firstly, a second citizenship allows one to choose a jurisdiction with a favourable tax regime. If the country of primary citizenship imposes high inheritance taxes, the second country may offer a zero rate or alternative mechanisms for asset protection.

Secondly, the opportunity arises to separate citizenship and tax residency.

Thirdly, citizenship provides access to an international structure of assets: bank accounts, investments, insurance, and trusts become simpler and more secure.

And finally, a second citizenship provides global mobility for the family, the right to choose a country of residence, and protection in case of unforeseen circumstances.

Advantages of Vanuatu citizenship for inheritance and tax planning

Citizenship of Vanuatu is not just a second passport. It is a tool for capital protection and continuity, especially in 2025, when issues of global taxation are becoming increasingly acute.

Vanuatu does not tax inheritance, gifts, capital gains, or foreign income. This makes the country one of the most favourable for wealthy individuals wishing to protect assets and pass them on to their children without losses.

A Vanuatu passport can be obtained in just 1–4 months through a direct government contribution starting from $130,000. There is no requirement for residency or travel to the islands.

Vanuatu offers a high level of confidentiality: applicants’ names are not disclosed, and information about citizenship is not shared with international CRS databases.

An additional bonus is visa-free entry to more than 100 countries.

How to properly structure the transfer of capital considering a change of citizenship

If you are planning to change citizenship for tax optimisation, it is important to understand that simply replacing your passport is not enough — you need to competently structure the ownership of assets and formalise the transition to the new jurisdiction.

When to change tax residency?

It is best to plan this in advance — 6–12 months before major transactions or inheritance decisions. It is important to terminate tax residency in one country before it begins in another.

How to prepare assets for cross-border transfer?

• • Reassess the property, resolve legal conflicts in the documentation.

• • Create international trusts or funds where the beneficiaries are already designated.

• • Ensure compliance with CRS, AML, FATCA, etc.

Why involve international consultants?

Professionals will help avoid double taxation, correctly arrange asset ownership, comply with the requirements of new jurisdictions, and protect beneficiaries from future disputes.

Would you like to learn how to plan asset transfer, avoid taxes, and obtain second citizenship in Vanuatu?

Contact our experts — we support clients at all stages: from tax analysis to obtaining a Vanuatu passport within 1–2 months. Confidentially, legally, and efficiently.