How inheritance tax works in Marshall Islands
Marshall Islands does not currently appear to impose a standalone national inheritance, estate, or gift tax. The Income Tax Act is focused on wages, business gross revenue, land-lease income, non-resident services, and hotel facilities rather than wealth transfers at death.
A 0% inheritance-tax position does not decide who owns land or company interests after death. Probate, domestic-relations law, customary land rights, title restrictions, and the governing documents of a vessel or company can control the transfer.
The deceased or heir may also remain exposed to tax in another country. Situs property, citizenship, residence, foreign companies, and bank accounts can all trigger an estate or inheritance filing outside Marshall Islands even when no RMI transfer tax is due.
Tax rates at a glance
- Inheritance tax
- 0%No standalone tax
- Estate tax
- 0%
- Gift tax
- 0% generally
- Land-lease income after transfer
- 3% gross
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Family investorsShareholdersVessel ownersEstate plannersCross-border families
Watch out for
- The absence of RMI inheritance tax is not a substitute for a will, ownership register, succession plan, and separate review of customary land rights. Land is not treated like an ordinary freely transferable portfolio asset.
- A foreign heir can still owe inheritance, estate, gift, or capital-gains tax in the heir's or deceased person's home country. The source-country result should be checked alongside residence and situs rules.
- Income-producing assets do not become tax-free merely because they were inherited. A company can continue to owe gross-revenue tax, and land-lease income can remain subject to the 3% gross-income charge.
- Bank, vessel, company, and beneficial-ownership records often need updating after death. Those compliance steps are separate from any tax due and can delay access to assets if ignored.
Frequently asked questions
Does Marshall Islands have inheritance tax?
No standalone national inheritance or estate tax has been identified in the current sources. Probate, land law, customary ownership, and the tax laws of another country may still affect the transfer.
Are gifts taxed in Marshall Islands?
No general national gift-tax schedule has been identified in the current tax sources. The legal transfer of land, shares, vessels, or other assets still needs separate review, especially where another country has a gift tax.
What happens to inherited land income?
The inheritance itself is not identified as a national RMI tax event, but income earned after the transfer can be taxed. In particular, gross income from immovable-property leases is subject to a 3% charge under the Income Tax Act.