The Danish government is planning to reduce inheritance tax for nephews and nieces in the upcoming finance law, aligning them with the tax rate currently applied to the deceased’s children. This initiative, according to Mohammad Rona, political spokesman for the Moderates, aims to address what they see as an unfair disparity in the current tax system.

Currently, nephews and nieces face an inheritance tax of approximately 36 percent when inheriting from a childless aunt or uncle. The proposal seeks to lower this rate to 15 percent.

The Moderates argue that the state should not dictate familial definitions or structures. They believe this change will ensure equitable tax treatment for individuals without children, regardless of the reason.

While open to further inheritance tax reforms for other groups, the Moderates are initially focused on equating nephews and nieces with children in inheritance scenarios involving childless relatives.

The estimated annual cost of this proposal is around 100 million kroner, and the planned implementation date is January 1, 2027. The number of individuals who will directly benefit from this change is currently unknown.

A 2022 survey by Dansk Erhverv revealed that inheritance tax is generally unpopular among employed Danes. Among Moderate party voters, 83 percent expressed support for either complete or partial abolition of the tax.