'%3e%3cpath%20fill='%23ffda44'%20d='m0%20345%20256.7-25.5L512%20345v167H0z'/%3e%3cpath%20fill='%23d80027'%20d='m0%20167%20255-23%20257%2023v178H0z'/%3e%3cpath%20fill='%23333'%20d='M0%200h512v167H0z'/%3e%3c/g%3e%3c/svg%3e)
Inheritance tax in Germany 2026
Germany taxes the receiver, with generous family allowances: €500,000 tax-free from a spouse, €400,000 from each parent, €200,000 from a grandparent — refreshing every 10 years for gifts.
Above the allowance, close family pays 7–30% on a rising scale, while unrelated heirs face 30–50%.
At a glance
- top rate
- 50% (unrelated recipients, largest amounts)
- entry band
- €500,000 spouse / €400,000 per child, tax-free
- tax year basis
- Charged on the transfer; 10-year gift look-back
- filing deadline
- Declare within 3 months of learning of the acquisition
- residency basis
- Worldwide if either side is German-resident; otherwise German assets
- regime flag
- Business assets: 85% or 100% exempt under continuation conditions
Rates
Inheritance and gift tax (2026)
| Recipient class | Tax-free allowance (EUR) | Rates above it |
|---|---|---|
| Spouse / civil partner | 500,000 | 7% – 30% (class I scale) |
| Children (and stepchildren) | 400,000 per parent | 7% – 30% |
| Grandchildren | 200,000 | 7% – 30% |
| Siblings, nieces/nephews, in-laws | 20,000 | 15% – 43% (class II) |
| Everyone else | 20,000 | 30% – 50% (class III) |
Thresholds & allowances
- 10-year refreshAllowances reset every 10 years for gifts
The core German estate-planning tool: gift early, gift repeatedly
- Family homeCan pass tax-free to spouse or children
Conditions include continued occupation (children: size limits)
- Business relief85% or 100% exemption
Continuation for 5–7 years with payroll conditions
Residency
Residency trigger
If the deceased/donor or the recipient is German-resident, the worldwide transfer is in scope; German nationals stay in the net for 5 years after emigrating.
Non-resident treatment
Wholly non-resident transfers are taxed only on German assets (property, 10%+ company stakes, business property), with allowances granted pro rata.
Notes
- The class I lower rates start at 7% on the first €75,000 above the allowance and reach 30% only past €26 million.
- All gifts from the same person within 10 years aggregate with the eventual inheritance.
- Germany has inheritance-tax treaties with a handful of countries including the United States, France, Switzerland and the Nordic states.
FAQ
How much can a child inherit tax-free in Germany?
€400,000 from each parent — so up to €800,000 across both — with the scale starting at just 7% above that. Gift allowances refresh every 10 years.
What do unrelated heirs pay in Germany?
Only €20,000 is tax-free, and the rate runs from 30% to 50% — the steepest class in the system.
Does German inheritance tax reach foreign assets?
Yes, whenever the deceased, donor or recipient is German-resident — and German nationals remain in scope for 5 years after leaving.
Figures: tax year 2026, compiled from public sources. Not tax advice.