Inheritance tax / Gift tax

  • We recommend long-term planning for the transition of your assets in order to achieve an optimal tax result.
  • You can reduce the amount of inheritance/gift tax by periodically transferring your assets to your children. By using a favourable allocation you can benefit from the tax-free amounts several times.
  • We recommend checking your current will to comply with the inheritance tax and gift tax reform, which included changes to tax-free amounts, the evaluation of assets and tax rates.
  • We can advise you when planning the transition of your assets.

Inheritance involving more than one country

  • If you live in Germany and inherit, for example, real property located abroad, it may have an impact on your tax situation, both in Germany and in the other country.
  • However, double taxation can be avoided under the regulations of a Double Taxation Agreement (DTA) between Germany and the country in question. Currently, however, DTAs for inheritance tax are only in force with Denmark, Greece, Sweden, Switzerland and the United States. The DTA with Austria has meanwhile been cancelled. DTAs for income tax have been concluded with more than 80 countries.
  • If a DTA is not applicable, Art. 21 of the German Inheritance Tax Law Act stipulates the option to offset at least part of your foreign inheritance tax against the German inheritance tax. However, in order to offset the tax, certain conditions need to be fulfilled.

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Tax Adviser Knut Riedel

Kontakt

Contact

Tax Adviser Knut Riedel
Trimburgstraße 2
81249 München

Additional branch office
Tax Adviser Knut Riedel
Neufeldstraße 4
82140 Olching

+49 (0)89 - 78 31 50
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