Inheritance tax

German inheritance tax

German inheritance tax


Sometimes in life you might get an inheritance. This may be inheritance tax relevant. If you receive an inheritance you will have to file a German inheritance tax return if you either live in Germany OR if you live outside of Germany but the inheritance is within Germany. Depending on e.g. the degree of relationship and the total taxable amount of the inheritance different tax rates will be applicable. The German inheritance tax code provide for tax allowances, again depending on the degree of relationship. The tax allowances are granted only once every ten years. Nonetheless an inheritance tax return must be filed at each inheritance.

Sometimes it might be even interesting to structure your inheritance whilst still in a position to do so. As tax free allowances are only granted every 10 years a well-planned structuring of the inheritance may save your heirs real money. A will is also very important to make sure your intentions and desires whilst planning the legacy are respected and tax relevant provisions are put into practice.

Please note that the inheritance tax is also applicable for gifts.

Please contact us if you need any assistance with the inheritance tax in Germany.