Inheritance tax (international and not German law)

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The international inheritance tax law comprises the provisions of national law that deal with the inheritance tax treatment of inheritance cases with foreign relevance, including the international agreements concluded for this purpose. Under foreign inheritance tax law means the inheritance tax rules of foreign jurisdictions.

This article or paragraph presents the situation in Germany . Help us to describe the situation in other countries.

International cases of conflict

The inheritance tax can be imposed after the territoriality principle or the principle of universality. According to the principle of territoriality, all objects and rights in the area of ​​the tax-collecting state or otherwise attributed to it are subject to taxation. According to the universality principle (also known as the world principle), all taxpayers belonging to the collecting state are taxed with their world assets. Most states that levy an inheritance tax and, as a result, usually also a gift tax, follow a mixture of both principles. On the one hand, they tax all assets located in their area (principle of territoriality) either on the basis of a tax liability restricted to domestic property (as in Germany) or in the form of a directly related estate tax (e.g. partially in the Netherlands and Luxembourg), on the other hand the persons not only temporarily resident in their area as ( unlimited taxpayers ) with their world assets. Some also extend the unlimited inheritance tax liability for a while to their own citizens after they have moved away. Both Germany and most of the cantons in Switzerland apply a mixture of the two principles, although general tax liability in Germany continues to have an effect five years after German citizens have left. The application of the different principles of tax collection and their mixture necessarily leads to an overlap of the national taxation in which the taxpayer is exposed to double taxation in the form of inheritance tax claims of several countries due to the same fact (inheritance).

Double taxation agreement

Double taxation agreements concluded between different countries have the purpose of preventing the taxpayer from being taxed twice as a result of the overlapping of national taxation regulations. They play a major role in income tax , but are also concluded in the area of ​​inheritance tax law, sometimes including gift tax. Double taxation agreements are ratified as international treaties by the legislative body and thus become national law. While Germany has concluded a large number of such agreements in the area of ​​income tax, there are only five in the area of ​​inheritance tax: with Denmark on November 22, 1995, France on October 12, 2006, Greece on November 18/1. December 1910, Switzerland of November 30, 1978 and the USA of December 21, 2000. The agreement with Greece only applies to movable property, the agreements with Denmark, France and the USA also apply to gift tax. Switzerland has also concluded several agreements in the area of ​​inheritance tax , which are binding for the cantons with tax sovereignty. Such agreements were also concluded by Liechtenstein as well as by Austria , where these agreements, however, in view of the abolition of the Austrian inheritance and gift tax, are only relevant for tax liability in the other treaty state. Insofar as the agreements provide for regulations, they generally assign the estate items affected by them to one or the other state, or provide for offsetting the tax paid in one state against the tax assessed in the other state.

The EU Inheritance Regulation  (650/2012) has been in effect since 2015 , according to which the principle of residence replaces citizenship in inheritance cases throughout the EU - with the exception of the United Kingdom, Ireland and Denmark, i.e. it is the right of residence and no longer the Nationality is decisive. It replaces a number of double taxation agreements.

Crediting of foreign tax

If no double taxation agreement applies, in Germany Section 21 (1) ErbStG opens up the possibility of the inheritance tax paid on the foreign assets being offset against the inheritance tax also payable under German law. A corresponding application from the taxpayer is required for this. Another prerequisite is that the assets are assets that, if taken into account in Germany, would be domestic assets according to the definition in Section 121 of the Valuation Act . This provision can mean that items that are not listed in Section 121 BewG (e.g. foreign bank balances) remain subject to double taxation. Most Swiss cantons also have an option to offset inheritance tax paid abroad. A theoretically possible intra-cantonal double taxation is avoided.

Taxation within the EU

The Community law the EU does not directly relevant provisions that deal with the inheritance and gift tax law. In the opinion of the European Court of Justice , an inheritance tax burden can in principle constitute an encroachment on the free movement of capital and thus be subject to the prohibition of discrimination. However, according to a judgment of February 12, 2009 (AZ C-67/08), due to the lack of criteria for the distribution of competencies between the member states, Community law is not yet developed enough to allow the member states to mutually adjust their tax collection so that double taxation of inheritance cases must be accepted. This currently also applies in view of the general aim of avoiding such double taxation within the EU by concluding double taxation agreements.

Many countries that tax the domestic assets of a foreign testator within the framework of a limited tax liability or a pure estate tax, accordingly deny taxable heirs resident abroad the otherwise granted exemptions. This also applies to German inheritance tax law (insofar as the tax liability arises solely from the provisions of Section 2 (1) No. 3 ErbStG). On the basis of a submission by the Düsseldorf Finance Court, the ECJ ruled on April 22, 2010 (C-510/08) for gift tax that different granting of the tax exempt amount due to the fact that they are not resident in Germany ties in, represents an impermissible restriction on the free movement of capital and violates Community law. The decision is fully transferable to inheritance tax and may have far-reaching effects on corresponding restrictions on tax exemptions in other member countries.

Inheritance tax in other countries

Inheritance tax is levied in different forms in many other countries. Their design differs not only in terms of the amount and the taxed assets, but above all in terms of the treatment of transition within families. In recent years there has been a clear international trend towards completely dispensing with a survey in favor of families, especially in the case of transitions between spouses and between parents and descendants. Some countries have abolished inheritance and gift taxes entirely, but have introduced or maintained a special tax on transfers between distant relatives and third parties in the form of a stamp duty (as in Portugal) or transfer tax (as in Cyprus).

Inheritance tax in the member states of the EU and the EEA

The situation of the collection of inheritance tax in the EU and in the European Economic Area (EEA) can be seen in the following table. The table shows that - disregarding the very high non-taxed allowances in Germany - Germany is one of the countries with the highest tax rates for close family members, alongside Belgium , France (which does not tax the spouses) and Spain (but where more than half of the regions the families are taxed with only 1% or symbolic 0.1%).

Inheritance tax in the member states of the EU and the EEA
Source: Karstenkascais, bases given
Member States Inheritance tax other taxes Taxation of spouses Taxing children Highest tax bracket annotation
Belgium Yes - 3 - 30% 3 - 30% 30-80% -
Bulgaria Yes - No No 5% -
Denmark Yes - No 15% 36.25% -
Germany Yes - 7-30% 7-30% 30-50% - Exemptions apply
Estonia No - No No 0 -
Finland Yes - 7-13% 7-13% 20-32% -
France Yes - No 5 - 40% 60% -
Greece Yes - 1 - 10% * 1 - 10% * 20-40% * Real estate with 1%
Ireland Yes - No 33% * 33% * As of October 10, 2018, the following exemptions apply: € 320,000 for children, € 32,500 for siblings, nephews / nieces etc., and € 16,250 in all other cases
Italy Yes 3% real estate 4% 4% 8th % -
Latvia No - No No 0 -
Lithuania Yes - No No 5 - 10% -
Luxembourg Yes - No* No 15-48 * if you have a child together, otherwise 5%
Malta No 2 - 5% No No 0 - Transaction tax on real estate and securities
Netherlands Yes - 10-20% 10-20% 30-40% -
Austria No - No No 0 -
Poland Yes - No No 12-20% -
Portugal No 10% * No No 10% * * Stamp duty among third parties and distant relatives
Romania No Stamp duty * No No 0 * degressive from 3 to 0.5% (from 2370 euros)
Sweden No - No No 0 -
Slovakia No - No No 0 -
Slovenia Yes - No No 12-39% -
Spain Yes Land: capital appreciation tax 7.65 -40.8% / no * 7.65 - 40.8% / no * 15.3 - 81.6% * No in 9 regions , yes in 8
Czech Republic Yes* - No No 3.5-20% * third party only
Hungary Yes - 2.5-21% 2.5-21% 21 - 40% * * Residential property: 8 - 21%
United Kingdom Yes Capital gains tax on gifts No 40% 40% -
Cyprus No 3 - 8% * No No 8th %* * Transfer fees for property donations
EEA
Iceland Yes - No 5% 5% -
Liechtenstein No - No No No Abolition of inheritance and gift taxes with the total revision of the Tax Act 2011
Norway No - Abolished in 2014

Inheritance tax in other countries

  • Egypt (abolished in 1996),
  • Australia (abolished as a federal tax in 1979),
  • India (abolished in 1985),
  • Israel (abolished in 1981),
  • Canada (abolished in 1972), since then a capital gains tax has been levied, which fakes a sale and taxes the difference between the original acquisition cost of a good and its estimated fictitious disposal lot at 75% of the income tax rate. Discounts are granted to spouses and, in the case of the transfer of agricultural property to descendants, by applying the tax value as the purchase price, whereby an increase in value is excluded.
  • New Zealand (abolished in 1992, but levies gift tax),
  • Russia (abolished in 2006)
  • Switzerland : Survey reserved for the cantons, in most cases it is raised
  • Singapore (abolished in 2008)
  • Turkey (abolished in 2008)
  • USA : Collected at the federal level with high tax exemptions. In some states inheritance tax or estate tax
  • China : There is no inheritance tax in China

[www.artax.com: China has no inheritance tax]

See also

Individual evidence
  1. ↑ BMF: Status of the double taxation agreement as of January 1, 2009  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. , No. I 2, page 3@1@ 2Template: Toter Link / www.bundesfinanzministerium.de  
  2. ↑ German-Danish tax agreement of November 22, 1995  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Toter Link / www.bundesfinanzministerium.de  
  3. ↑ ratified on April 2, 2009 Archive link ( Memento of the original from June 11, 2009 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.bundesfinanzministerium.de
  4. ↑ Agreement between Germany and Greece on the taxation of movable estate from November 18/1. December 1910  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Toter Link / www.bundesfinanzministerium.de  
  5. ↑ Agreement between the Federal Republic of Germany and the Swiss Confederation to avoid double taxation in the area of ​​estate and inheritance taxes  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Toter Link / www.bundesfinanzministerium.de  
  6. ↑ Double taxation agreement in the field of estate, inheritance and gift taxes of December 21, 2000, DBA of December 21, 2000 ( Memento of the original of January 2, 2014 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.bundesfinanzministerium.de
  7. ↑ That changes now with inheritances. Christine Klafl in: Kurier online, June 27, 2015.
  8. ^ Judgment of the ECJ of February 23, 2006, C-513/03
  9. ^ Judgment of the ECJ of February 12, 2009
  10. ^ Mattner v. Finanzamt Velbert [1]
  11. ^ See inheritance tax in Belgium ; Inheritance law and inheritance tax law in Belgium  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. (PDF; 50 kB)@1@ 2Template: Toter Link / www.erbrechtsforum.de  
  12. ↑ See inheritance tax in Bulgaria ; Inheritance tax reform from 2005 ( Memento of the original from April 27, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.gtai.de
  13. ↑ See inheritance tax in Denmark ; To the German-Danish DBA inheritance tax
  14. ↑ See inheritance tax in Germany
  15. ↑ See inheritance tax in Estonia ; Viktor Kaasik: Inheritance law in Estonia , in: Rembert Süß (Ed.): Inheritance law in Europe , 2nd edition 2008, Zerb Verlag, Angelbachtal, ISBN 978-3-935079-57-0 , page 584 item 119
  16. ↑ See inheritance tax in Finland ; Publication of the Finnish Tax Administration 35e.09: Inheritance Tax (English)  ( Page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Dead Link / www.vero.fi  
  17. ^ See inheritance tax in France ; Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act , 3, 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal no. 100; Petra Kuhn: French inheritance tax law  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.@1@ 2Template: Dead Link / www.wgzavocats.com  
  18. ↑ See inheritance tax in Greece ; Leaflet from the German Embassy in Athens, page 9 ; European Academy for Inheritance Law Country Overview Greece (PDF; 156 kB)
  19. ↑ See http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html (Accessed January 26, 2019)
  20. ↑ See inheritance tax in Italy ; BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007, international comparison, competition for locations, p. 6 f., [2]
  21. ↑ See inheritance tax in Latvia ; Alexander Gebhardt and Theis Klauberg: Inheritance law in Latvia , in: Rembert Süß: Inheritance law in Europe , 2nd edition 2008, Zerb Verlag Angelbachtal, ISBN 978-3-935079-57-0 , pages 951 ff., 963
  22. ↑ See inheritance tax in Lithuania ; Page of the Lithuanian tax administration, Taxes paid by foreigners in Lithuana , page 16, (English) ( Memento of the original from October 16, 2008 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. ; Inheritance tax and law @1@ 2Template: Webachiv / IABot / www.vmi.lt
  23. ↑ See inheritance tax in Luxembourg ; Inheritance and wills, pages 16–17 ( Memento of the original dated December 2, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. ; KPMG, aspects, p. 13 @1@ 2Template: Webachiv / IABot / www.csl.lu
  24. ↑ See inheritance tax in Malta ; Malta inheritance
  25. ↑ See inheritance tax in the Netherlands ; Page of the Dutch Ministry of Finance, loaded January 7, 2010: Probening in erven 2010 (Dutch) ( Memento of the original of April 8, 2011 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. (PDF; 179 kB) @1@ 2Template: Webachiv / IABot / download.panningdienst.nl
  26. ↑ See inheritance tax in Austria
  27. ↑ See inheritance tax in Poland ; BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007, international comparison, competition for locations, p. 11, [3] ; Inheritance Tax Poland (English) ; CFE Portal (English) ( Memento of the original from October 23, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.cfe-eutax.org
  28. ↑ See inheritance tax in Portugal ; Müller-Bromley: Taxes on land acquisition  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice. ; Erhard Hutzel, Burckhard Löber, Ines Wollmann: Inheriting and inheriting in Portugal , Edition for international economics, Frankfurt / Main 2009, ISBN 978-3-921326-58-9 . P. 122ff.@1@ 2Template: Toter Link / mueller-bromley.de  
  29. ↑ See inheritance tax in Romania ; Axel Bormann: Inheritance law in Romania , in: Rembert Süß (Ed.): Inheritance law in Europe , Zerb-Verlag 2nd edition 2008, ISBN 978-3-935079-57-0 , page 1250f.
  30. ↑ See inheritance tax in Sweden ; Ernst Johannsson: Inheritance law in Sweden , in: Rembert Süß (Ed.): Inheritance law in Europe , 2nd edition 2008, Zerb Verlag, ISBN 978-3-935079-57-0 , page 1319 No. 184
  31. ↑ See inheritance tax in Slovakia ; Slovakia as a financial center, p. 7 (PDF; 190 kB)
  32. ↑ See inheritance tax in Slovenia ; Website of the Slovenian Ministry of Finance: Taxation in Slovenia, March 2009, page 21, No. 2.2.1, (English) ( Memento from December 22, 2009 in the Internet Archive ) (PDF; 156 kB)
  33. ↑ See inheritance tax in Spain
  34. ↑ See also inheritance tax in the Czech Republic ; Page of the Czech Republic on inheritance and gift tax ( memento of the original dated August 13, 2009 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / www.czech.cz
  35. ↑ See inheritance tax in Hungary ; Page of the Hungarian tax and financial auditing office on inheritance, gift and property transfer tax ( memento of the original from December 25, 2010 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot / de.apeh.hu
  36. ↑ See UK Inheritance Tax ; JH Frank: United Kingdom Inheritance Tax ; Ernst & Young: Taxes in the UK, s. 21f.
  37. ↑ See inheritance tax in Cyprus ; Deloitte: Cyprus Tax Facts 2009, page 36 (English)
  38. ↑ See inheritance tax in Iceland ; Rembert Süß: Erbrecht in Iceland , in: Rembert Süß (Hrsg.): Erbrecht in Europa , 2nd edition 2008, Zerb Verlag, Angelbachtal, ISBN 978-3-935079-57-0 , page 826
  39. ↑ reports and application 48/2010. Retrieved April 30, 2019 .
  40. ↑ reports and application 83/2010. Retrieved April 30, 2019 .
  41. ↑ See inheritance tax in Norway
  42. ↑ Page of the Egyptian Ministry of Finance, loaded January 13, 2010, New property tax for Egypt (English) ( Memento of the original from September 28, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.mof.gov.eg
  43. ↑ Tax Policy Blog, loaded January 13, 2010, About Estate Tax (English) ( Memento of the original from August 28, 2009 in the Internet Archive ) Info: The archive link was automatically inserted and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.  @1@ 2Template: Webachiv / IABot / www.taxfoundation.org
  44. ↑ Global Property Guide, loaded January 13, 2010, India Inheritance (English)
  45. ↑ Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act, 3, 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal note 105 (Israel)
  46. ^ BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007, international comparison, competition for locations, p. 7, [4]
  47. ↑ Troll-Gebel-Jülicher: Inheritance Tax and Gift Tax Act , loose-leaf commentary, 37th edition 2009, Vahlen, ISBN 978-3-8006-2402-7 , § 21 ErbStG marginal no. 108 (Canada)
  48. ↑ Troll / Gebel / Jülicher: Inheritance Tax and Gift Tax Act, 3, 7th edition 2009, Vahlen, loose-leaf commentary, ISBN 978-3-8006-2402-7 , § 21 ErbStG, marginal number 118 (New Zealand)
  49. ↑ Helge Masanek: Inheritance law in the Russian Federation , in: Rembert Süß (editor): Inheritance law in Europe , 2nd edition Zerb Verlag, 2008, ISBN 978-3-935079-57-0 , pages: 1253 - 1273, 1273 Tz 85
  50. ↑ Page of the Singapore Tax Administration, loaded January 10, 2010, Estate Duty does not apply where a person dies after Feb 15, 2008 (English)
  51. ↑ Deloitte: Inheritance Tax and Gift Tax will be abolished (English)
  52. ↑ See Inheritance Tax in the United States