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EULawyer, Lawyer
Category: German Law
Satisfied Customers: 269
Experience:  Titular Attorney (Avocat) at Ioan-Luca Vlad Law Office
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Nice to meet you. I'd like to know how German government

Customer Question

Hello, nice to meet you. I'd like to know how German government taxes the inheritance if the deceased person is German national by naturalization and the family member are non-EU/US citizens? What are the exemption amount for the parents and the siblings? What inheritances are taxable and what would be the percentage of tax to the inheritances? Is there a way to avoid the tax or be taxed less? Thanks
Submitted: 1 year ago.
Category: German Law
Expert:  EULawyer replied 1 year ago.

Dear Customer,

I am sorry for the delay in replying. There are not many experts in European law around here.

The answer to your question is:

1. There is no difference in taxation of inheritance based on whether the deceased is a German citizen or not (or how he got his citizenship), nor on the citizenship of their family, nor on where they live.

2. The percentage is calculated as follows:

-> If children inherit, the first EUR 400.000 (four hundred thousand) is exempted. Then, the value of the inheritance above that is progressively taxed at between 7% (up to 75.000 over the 400.000) and 30% (for a value over 26 million EUR);

-> If parents inherit, the first EUR 20.000 (twenty thousand) is exempted. Then, the value of the inheritance above that is progressively taxed at between 15% (same up to 75.000) and 43% (at over 26 million EUR).

3. Any item in the inheritance (including money and debts owed to the deceased) is taken into account for the valuation of the inheritance. Then the exemption amount is deducted, and then the percentage is applied.

The following objects are exempted from the general valuation (they don't go into the calculation of the total value, and are exempted from tax beyond the exemptions based on the degree of kinship):

-> household goods up to 41.000 EUR value; and

-> other items like jewelry and cars, up to a total of 12.000 EUR value.

4. This particular tax is not caught usually in double taxation treaties, and is applied universally on anyone who inherits, because it is the inheritance which is taxed. Therefore, the amount of the tax can only be changed by the value of the goods in the inheritance and the class of heirs which inherits (as you can see, the difference between children and parents in their exemption is huge).

I hope my answer has helped you and look forward to your rating.


Dr I L Vlad

Customer: replied 1 year ago.
Hello Dr. Vlad,I came cross the following page after I filed my questions. I am not convinced if your answers are totally right but I also get confused by some of the content of that webpage.. For "a" parent, it says 100K euro is exempted while you say 20K...How about the stock option or investment with the bank? will they be taxed? if yes, how? how about buying gold? would the gold be taxed? Both the parents of the testator are still alive and the grandmothers too. could they all be the beneficiaries? In the given webpage, it mentioned that if both the testator and the beneficiary don't live in Germany, only 2K euro are exempted. Is this true? In our case, the person in question has no testament and is a German resident but not the rest of the family.What is the best way to distribute the inheritance in order to avoid the heavy tax? or is there anything better to do to be less taxed? Thanks and looking forward to your feedback.