CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EU Asks Germany To Amend IHT Rules

EU Asks Germany To Amend IHT Rules

by Ulrika Lomas, Tax-News.com, Brussels

20 November 2015


The European Commission has asked the German Government to amend its inheritance tax (IHT) law after finding that current rules discriminate against those who are not resident in Germany for tax purposes in certain situations.

Under German IHT law, a special maintenance allowance is granted to surviving spouses or registered partners of a deceased individual only if either one or both of them are tax residents in Germany. The allowance is not available to surviving spouses or registered partners when they inherit an estate or an investment that is located in Germany but the deceased and the heir are tax resident in another member state.

According to the European Commission, these rules constitute "an unjustified restriction on the free movement of capital" under the European Treaty as the value of the inheritance is reduced in cases where these tax residence criteria are not fulfilled. The Commission also said that current law may deter other EU nationals from investing their capital in German properties and investments.

The Commission has issued Germany with a reasoned opinion, giving the German Government two months to respond to its request. The Commission said it may refer Germany to the European Court of Justice "in the absence of a satisfactory response."

TAGS: inheritance tax | tax | investment | European Commission | law | Germany | Europe

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »