When Germany can tax an inheritance
Broad German liability may arise when the deceased or heir has the relevant German residence connection. Limited liability may also arise for specified German assets, such as German real estate.
Citizenship, recent departure and treaty rules can alter the result. Cross-border estates need a facts-first review.
Relationship changes the calculation
Allowances and tax classes depend heavily on the relationship between heir and deceased. Spouses and children are treated differently from siblings, unmarried partners and unrelated heirs.
- Identify every heir and relationship.
- List assets and debts by country.
- Record residence and citizenship history.
- Collect foreign inheritance-tax assessments.
Act before distributing assets
Notification, valuation and filing duties can arise before the estate is fully settled. Foreign tax may be creditable, but relief is not automatic and treaties exist only with a limited group of countries.
Frequently asked
Do foreigners pay German inheritance tax?
They can. Residence connections and German-situs assets matter more than the label foreigner.
Is an inheritance taxed as income in Germany?
Inheritance tax is a separate tax. Later income produced by inherited assets can also be subject to income tax.
Can the same inheritance be taxed in two countries?
Yes. Treaty or domestic credit relief may reduce double taxation, but the mechanism depends on the countries and assets involved.
This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.