Inheritance tax · Gift tax · Section 30 ErbStG
Reporting an inheritance or gift to the German tax office
An inheritance or gift may have to be reported in Germany even if no German inheritance or gift tax is ultimately payable. Under Section 30 ErbStG, a taxable acquisition must generally be reported to the competent German inheritance tax office within three months after the relevant person becomes aware of the acquisition. For lifetime gifts, the reporting obligation generally applies to both the donor and the recipient.
Section 30 ErbStG
Taxable inheritances and gifts generally have to be reported
An acquisition that falls within the German Inheritance and Gift Tax Act must generally be reported in writing to the tax office responsible for inheritance and gift tax. This includes, in particular, acquisitions upon death, lifetime gifts and certain designated-purpose transfers.
A report may therefore be required even if the acquisition is expected to remain below the applicable personal allowance and no tax will ultimately be assessed. The reporting obligation and the final tax calculation are separate questions.
Who has to report?
Different rules apply to inheritances and lifetime gifts
For an acquisition upon death, the reporting obligation generally rests with the person receiving the assets. For a lifetime gift, the person from whose assets the gift is made is also generally required to report the transaction.
For an ordinary lifetime gift, this means that both donor and recipient may have a reporting obligation unless a statutory exception applies.
- heirs and other beneficiaries upon death
- legatees
- gift recipients
- for lifetime gifts, generally also the donor
- persons responsible for designated-purpose transfers
- cross-border acquisitions may also be reportable
Deadline
The statutory reporting period is generally three months
The reporting deadline is generally three months. For an inheritance, the period generally starts once the recipient becomes aware of the acquisition. For other taxable events, the relevant point is the person's knowledge of the event giving rise to the acquisition or obligation.
For lifetime gifts, the reporting requirement should therefore be addressed promptly after the transfer is completed. Gifts made by bank transfer, securities transfers or other transactions not involving a notary are often overlooked in practice.
Exceptions
When is a separate report generally not required?
Section 30 ErbStG contains certain exceptions because courts, notaries and other authorities already transmit information to the tax administration in those situations.
Notarized lifetime gift
A lifetime gift or designated-purpose transfer generally does not have to be reported separately under Section 30 ErbStG if it has been recorded by a court or notary.
Opened will
A separate report may not be required where the acquisition is based on a testamentary disposition opened by a German court, German notary or German consul and the relationship between the beneficiary and the deceased is clearly established by the document.
Important exceptions to the exception
The relief for opened testamentary dispositions does not apply without limitation, particularly where real estate, business property, certain shareholdings or foreign assets form part of the acquisition.
Private cash gift
A straightforward transfer of money between family members is generally not reported by a notary or court. The parties should therefore review their own reporting obligation.
Practical examples
Typical situations in which a gift may have to be reported
Parents transfer money
If parents transfer a substantial amount of money to a child, a gift generally exists. Even if the personal allowance is sufficient, the reporting requirement must be considered separately.
Securities account transfer
For an uncompensated transfer of securities, the portfolio value and the composition of the transferred assets should be documented.
Real estate gift
Where a property gift is notarized, the special reporting obligation of the notary generally means that a separate Section 30 report is not required.
Debt forgiveness
The uncompensated waiver of a receivable can also constitute a gift and trigger German gift tax considerations.
Business interests
Transfers of company shares or business interests can create additional valuation and business-property relief issues.
Gift from abroad
A gift received from a person living outside Germany can still be subject to German gift tax and reporting obligations.
Required information
What information should the notification contain?
The purpose of the report is to give the tax office enough information to determine whether a formal inheritance or gift tax return should be requested.
The parties, the transferred assets and previous gifts should therefore be described as clearly as possible.
- name and tax identification number of the parties
- occupation and address
- date and place of death or date of the gift
- nature and value of the acquisition
- legal basis of the acquisition
- relationship between recipient and deceased or donor
- previous transfers, including type, value and date
Previous gifts
Earlier transfers from the same donor should not be overlooked
The notification should also disclose previous transfers from the deceased or donor to the same recipient, including their type, value and date. This information matters because multiple acquisitions within the statutory aggregation period can be combined for German inheritance and gift tax purposes.
Anyone receiving substantial transfers from the same parents, grandparents or other donors over a number of years should therefore maintain a clear gift history.
Cross-border cases
Foreign inheritances and gifts can also be reportable in Germany
German inheritance and gift tax is not limited to assets located in Germany. If the deceased, donor or recipient qualifies as a German “Inländer” for inheritance and gift tax purposes at the relevant time, Germany may in principle tax the worldwide acquisition.
Even where none of the parties is resident in Germany, certain German-situs assets can give rise to limited German inheritance or gift tax liability.
Germany and foreign countries
Typical cross-border situations
German recipient, foreign donor
If the recipient lives in Germany, a gift received from abroad can in principle fall within German gift tax.
Foreign recipient, German deceased
Even if the heir lives abroad, German unlimited inheritance tax liability can arise based on the status of the deceased.
All parties abroad
Certain German-situs assets can still create limited German inheritance or gift tax liability.
Tax in another country as well
If another country taxes the same acquisition, double taxation, foreign tax credits and any applicable inheritance or estate tax treaty should be reviewed.
Competent tax office
The report is not necessarily filed with your regular income tax office
The notification must be filed with the tax office that administers inheritance and gift tax for the specific case. Local jurisdiction is determined under Section 35 ErbStG and can depend, in particular, on the circumstances of the deceased, donor or recipient.
Several German states centralize inheritance and gift tax administration in specific tax offices. The competent inheritance tax office should therefore be identified before the notification is filed.
Notification or tax return?
The Section 30 notification is not yet a German inheritance or gift tax return
The initial notification simply informs the tax office that a potentially taxable acquisition has occurred. The tax office then decides whether a formal inheritance or gift tax return must be filed.
Under Section 31 ErbStG, the tax office can require the relevant parties to submit a tax return. This generally contains significantly more detailed information on the composition and valuation of the assets received.
Valuation
The nominal amount is not always the relevant value
For a cash gift, valuation is usually straightforward. Real estate, business interests, securities, rights of use and mixed gifts can be considerably more complex.
The initial notification does not necessarily require every detail of the final tax valuation. However, the acquisition and its approximate value should be stated as clearly as possible. A final valuation may follow as part of the tax return or a separate valuation procedure.
Late notification
What if the three-month deadline has already passed?
If a potentially reportable inheritance or gift was not reported within the statutory period, the first step is to determine whether a reporting obligation actually existed and whether one of the statutory exceptions applies.
If the transaction should have been reported, the omission should generally not be left unresolved. Particularly where tax is due, procedural and potentially tax-penalty or tax-criminal issues may also need to be considered. The appropriate approach depends on the facts of the specific case.
Common mistakes
Common mistakes when reporting inheritances and gifts
“The allowance covers it”
The amount of the personal tax allowance does not automatically determine whether a notification is required.
Only the recipient considers the filing
For lifetime gifts, the donor is generally also subject to the reporting requirement.
Previous gifts are omitted
Earlier transfers from the same donor are among the information contemplated by the statutory notification rules.
Assuming foreign means outside German tax
Residence, habitual abode, nationality and the type of property involved can create German tax exposure even in international cases.
Confusing the notification with the tax return
The Section 30 notification is an initial report. A full inheritance or gift tax return is a separate procedural step.
Applying the notary exception too broadly
Not every inheritance is exempt from separate reporting merely because a will or notary was involved. The statutory requirements and exceptions must be checked carefully.
Practical process
How to document an inheritance or gift properly
Review German tax exposure
Determine whether the acquisition falls within the German inheritance and gift tax system.
Check whether a reporting exception applies
In particular, review notarized gifts and formally opened testamentary dispositions to determine whether a separate report is necessary.
Determine the three-month deadline
Document the relevant date of knowledge or the execution of the gift.
Compile the acquisition and previous transfers
List the assets received, their values and previous acquisitions from the same donor or deceased.
Identify the competent tax office
Determine which German inheritance tax office has jurisdiction over the case.
Submit the notification
Provide the required information in a structured written notification.
Respond to the tax office
The tax office may then request additional documentation or a full inheritance or gift tax return.
Related guidance
Related topics
Frequently asked questions
Reporting an inheritance or gift in Germany
Does every gift have to be reported to the German tax office?
How long do I have to report a gift?
Who has to report a lifetime gift?
Do I have to report a notarized gift separately?
Do I have to report an inheritance if there is a will?
Do I have to report a gift even if it is below the tax allowance?
Is the notification already a gift or inheritance tax return?
Does a gift from abroad have to be reported in Germany?
What information should the report contain?
What should I do if the three-month deadline has passed?
German inheritance and gift tax
Have you received an inheritance or gift and need to review the German reporting requirement?
We review the reporting obligation, competent tax office, personal allowances, previous transfers and cross-border aspects and assist with notifications under Section 30 ErbStG as well as any subsequent German inheritance or gift tax return.
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