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INHERITANCE TAX How high are German heritage taxes?


Heritage tax is levied on transfers after death of property or assets. The beneficiary pays this duty. Applicable legacy tax rates vary according to the beneficiary's relationship to the deceased. Three relevant relationship classes and exemptions apply:  عقارات

 

Beneficiary categories:

 

Class I: spouses and civil partners, children and step-children, parents, grandparents.

Class II: brothers (brothers), children (nephews, nieces), step-parents, parents-in-law, brothers-in-law, sisters-in-law, divorced marriages

Class III: all other persons

 

Property transfer is subject to legacy tax at graduated rates based on the value of the property and the family relationship classes (see below).

 

EXEMPTION CLASS RELATIONSHIP (€)

I

Spouse

€500,000

Kids and step-kids, grandchildren

€400,000

€200,000

Parents and grandparents, big kids.

€100,000

II

€20,000

III

€20,000

Source: Guide to Global Property

TAX INHERITANCE

BASIC TAX, € CLASS I CLASS II CLASS III.

Up to 75,000 euros

Seven percent

15% 15%

Thirty percent

75,000 euros – 300,000 euros

11% 11%

20 p. 100

30 p.cent

300,000 euros - 600,000 euros

15% 15%

25 p. 100

30 p. cent

600,000 euros - 6,000,000 euros

19% of the

30 p. cent

30 p. cent

€6 million - €13 million

23% of the

35% 35%

Fifty percent

€13 million - €26 million

27 per 100

Forty percent

Fifty percent

More than €26,000,000

30 p. cent

Four3 percent

Fifty percent

Source: Guide to Global Property

 

LAW INHERITANCE

Thanks to Martínez-Oliver Echevarría's Braun, Perez and Ferrero

 

 

In Germany, what inheritance laws apply?

 

The legacy law of the deceased's nationality applies in Germany.

In German international law, the applicable law is the nationality, subject to the following exceptions, of the deceased when he or she is dead:

 

If a deceased stranger owns real property in another country under special rules, German law recognizes such special rules regardless of the deceased's nationality.

When foreign international law refers to inheritance issues under German heritage law, German law shall apply.

Irrespective of its nationality, the German real estate owner may determine that German law on inheritance applies.

 

The "Nachlassgericht," a subdivision of the Local Court at the last place of residence of the deceased, is the competent authority for heritage in Germany. It is the notary in the Federal State of Baden-Württemberg. For complaints against resolutions of the probate court, each District Court has a specialized chamber. The accurate formal requirements and the approximate time for completion vary greatly depending on the complexity of each case, thus making it impossible to make an accurate estimate of the length of the heritage process in Germany.

 

The German system of heritage includes legal heirs.

Universal succession is the main principle in German heritage law, i.e. the assets, as well as all its legal or contractual rights are transferred to the heirs, duties and duties. If the inherited obligations exceed the value of the inherited rights and assets, the rejection of the inheritance may be advisable.