Inheritance tax in Germany when you live abroad

Inheritance tax in Germany: establish which assets are covered

Citizenship alone does not decide whether an inheritance falls within German taxation. Under ErbStG section 2, unlimited tax liability generally applies when either the deceased at death or the recipient when tax arises qualifies as a German resident under that provision. It can cover the entire acquisition, including foreign assets. The statutory definition includes a German domicile or habitual residence. It also includes certain German citizens abroad, so an overseas mailing address is insufficient to settle the issue.

One important rule covers German nationals who have lived continuously abroad for no more than five years without a German domicile. Other statutory categories can also matter. These are sourced legal conditions, not assumptions about you: ErbStG section 2, checked 10.10.2026. Record citizenship, retained homes, departure dates and residence history for both people. Ask a cross-border tax adviser to classify the case before relying on an exemption or excluding foreign assets.

If unlimited liability does not apply, limited liability can still cover German domestic assets as defined by BewG section 121. German real estate is a central example. Questions about German inheritance tax for non-residents therefore require an asset inventory as well as residence facts. Keep the tax analysis separate from the law governing who inherits. A probate document identifies entitlement; it does not establish that every inherited asset is tax-free.

Personal allowances and relationship-based tax classes

German inheritance tax is assessed on an individual recipient’s acquisition. The relationship to the deceased determines the tax class and personal allowance. The following statutory amounts apply to unlimited liability under ErbStG section 16(1), checked 10.10.2026. They are legal allowances, not predictions of your taxable amount. An estate’s asking price or an online property estimate cannot simply be substituted for the relevant tax valuation.

Class I includes spouses, registered civil partners, children, stepchildren, their descendants and parents or ancestors inheriting on death. Class II includes specified relatives such as siblings, nieces and nephews, parents outside class I, and specified relatives by marriage. All other recipients generally fall in class III. A registered civil partnership in the statutory sense is distinct from simply living together. Establish the legal relationship and retain documents supporting it.

For limited liability, section 16(2) provides for a proportional reduction of the personal allowance. Its calculation considers relevant assets outside German limited taxation and acquisitions from the same person within ten years. These conditions come from section 16(2), checked 10.10.2026. Do not automatically apply either the full table amount or a blanket small allowance to every overseas heir. Earlier gifts and a worldwide inventory may be needed even when only German assets are taxed.

Tax rates apply after the taxable acquisition is established

The rate schedule in ErbStG section 19 depends on tax class and taxable acquisition. The table gives statutory bands as checked on 10.10.2026. It is not an income-tax-style ladder of marginal slices. Section 19 also includes relief at band boundaries and rules relevant to treaty-exempt assets. A rough multiplication that ignores those provisions can misstate the result.

Property valuation, deductible liabilities, previous acquisitions and any applicable property exemption need their own assessment. A family home is not automatically exempt because a relative lived there. Conditions and continued use can matter. Keep valuation evidence, debt statements and occupancy records together. The German-language calculator offers a simplified domestic illustration. It does not calculate cross-border residence classification, reduced non-resident allowances or treaty relief.

Certificate of inheritance in Germany: apply from abroad

An Erbschein is a German certificate of inheritance issued by the competent Nachlassgericht, the probate court. Before applying, ask the land registry or the professional handling the estate which proof is needed. Under GBO section 35, an opened public will or inheritance contract with the court’s opening record can sometimes establish succession without an Erbschein. Do not order a certificate solely because the estate contains a house.

The German missions in the United States describe a consular application route: provide the mission’s questionnaire and supporting records, have the required declaration prepared and executed, then submit the application to the competent German court. The court issues the certificate. Consular assistance with documents does not replace the court’s decision. Services and appointment arrangements depend on the mission; confirm them directly before making travel plans.

Prepare identity records, the death certificate, testamentary documents and evidence of family relationships. Tell the court or mission about foreign proceedings and existing probate documents. Ask which originals, certified copies, translations and authentication are required. Keep the spelling of names consistent across records and explain differences. Agree who will receive court correspondence in Germany and who will forward it promptly to you. Resolve contradictory succession documents with a qualified lawyer before attempting a property transaction.

Renouncing an inheritance while you are abroad

If German succession law applies and you are considering renunciation, investigate the deadline immediately. BGB section 1944 normally allows six weeks. Under subsection 3 it is six months if the deceased’s last domicile was only abroad or you are abroad when the period begins. The period starts when you learn of the inheritance and the basis of your entitlement; for testamentary succession it cannot begin before the probate court communicates the disposition. Source: section 1944, checked 10.10.2026.

BGB section 1945 requires a declaration to the probate court, recorded by the court or in publicly certified form. A casual email or a message to another heir is insufficient. German consular missions explain signature certification abroad and subsequent submission to the German court. The UK mission also describes an apostilled British notarial route. Confirm the acceptable form for your country and allow time for delivery. A consular appointment alone does not complete submission.

Ask urgently about the consequences for children or other people who could inherit after you renounce. Also discuss estate debts, actions that could imply acceptance and any dispute about applicable law. Do not wait for a final property appraisal before obtaining deadline advice. Write down when you received each relevant notice and preserve envelopes or delivery records. The longer statutory period is conditional; it is not a general extension for anyone with foreign citizenship.

Double taxation: distinguish inheritance treaties from income-tax treaties

The BMF overview dated 1 January 2026 lists applicable inheritance or gift tax agreements with Denmark, France, Greece, Switzerland and the United States. It also records the former Swedish agreement as applying only through 31 December 2023. The list was checked on 10.10.2026. Treaty scope differs by country and asset type. Inclusion on the list does not establish that your property or particular transfer receives relief.

For an inheritance involving Germany and the UK, do not treat the ordinary income-tax treaty as an inheritance-tax agreement. The United Kingdom is absent from the applicable inheritance-tax agreements in that BMF overview. Domestic relief may still need examination. Give your adviser foreign assessments, payment evidence, asset valuations and residence information. Ask separately about each country’s filing requirements. A German notification or assessment does not automatically fulfil obligations elsewhere.

Next steps when you inherit property in Germany

1. Identify urgent correspondenceCollect probate notices and tax-office letters. Record receipt dates and ask which deadlines apply before arranging a sale, renting the property or disposing of estate assets.
2. Establish entitlement and representationConfirm the succession documents accepted for the property, identify any other heirs and agree who handles correspondence. Obtain legal guidance where ownership or authority is disputed.
3. Assemble the property recordsRequest the land register, loan statements, leases and building records through entitled parties. For a flat, include owners’ association records and outstanding payments.
4. Separate condition, value and taxDocument repairs, occupancy and cash needs. Obtain suitable valuation evidence for the purpose at hand. A market estimate and the value used for inheritance tax serve different purposes.
5. Plan the next useCompare retaining, renting and selling after the urgent legal questions are resolved. Record ongoing costs, practical management from abroad and any consents needed from other heirs.

The English property-buying guides help you understand documents a future buyer may request. Use the property checklist for the inspection record and the risk guide to distinguish land-register burdens from physical risks. If you may acquire another heir’s interest, read buying property as a foreigner and obtain advice on the specific transfer.

ErbStG section 30 generally requires written notification to the competent inheritance-tax office within three months of learning of the acquisition. Its opened-will exception does not apply where the acquisition includes real estate. Source: section 30, checked 10.10.2026. Ask which office is responsible and distinguish notification from a later tax return. Do not assume the probate court handles your personal tax obligations.

Keep a private folder containing source documents, assumptions and unanswered questions. The methodology page, in German explains how reesinsy separates available evidence from missing information; the editorial page, in German describes responsibility for the content. This article provides general information, not individual legal or tax advice. Take your documented facts to the court, tax office and appropriately qualified advisers.

Frequently asked questions