Giving and inheriting across the border
Germans who wish to make a gift to a person abroad should bear in mind that the recipient abroad will also be liable for German gift or inheritance tax.
What can you expect from Benefitax?
Let us support you in advance with the preliminary determination of gift or inheritance tax. Based on your individual requirements, we will develop proposals for reorganizing your will, residence, etc. This allows you to reduce inheritance tax. This leaves more for your loved ones. If the worst comes to the worst, we determine the assets in accordance with inheritance tax principles and prepare German gift and inheritance tax returns for you or your heirs. If there are any disputes with the tax office, we will resolve them for you. If gift and inheritance tax declarations are to be submitted abroad, we recommend competent local experts and can also take over communication with them on request.
Avoiding German inheritance tax. Not so easy
Anyone living in Germany who receives a gift or inherits something from a person abroad must declare this in Germany. For example, there is no tax advantage if the father moves to Austria for inheritance tax reasons (which, as you know, no longer levies inheritance tax) and appoints his son, who lives in Germany, as his sole heir. In this case, the son would also have to have moved away from Germany beforehand.
Avoid double taxation in two countries
In the worst case, both the donor’s country of residence and the recipient’s country of residence levy inheritance tax. German and foreign inheritance tax is then payable, which can eat up more than 70% of the assets. People abroad are therefore well advised to have an advisor experienced in international inheritance tax law such as Benefitax at their side before drawing up a will, legacy or marriage contract. Protect your assets with us. You can find more information in an article on “Avoiding double taxation“.
