Germany

What are the inheritance tax exemptions in Germany?

€500,000
Spouse/Partner exemption
€400,000
Child exemption
€200,000
Grandchild exemption
€100,000
Other Class I relatives
The Short Answer

Germany offers tax-free allowances (Freibeträge) based on relationship to the deceased, ranging from €20,000 for distant relatives to €500,000 for spouses or registered partners.

What the Law Says

German inheritance tax law provides personal tax exemptions (Freibeträge) that reduce or eliminate tax liability depending on the heir’s relationship to the deceased. These exemptions apply only to transfers subject to German inheritance tax — either due to unlimited tax liability (e.g., resident heirs or German-situated assets) or limited liability (e.g., non-resident heirs receiving German assets).

The exemptions are set out in ErbStG § 16 and vary by tax class, which is determined by family closeness and legal relationship. Spouses and registered life partners receive the highest exemption. Children and certain descendants follow, with progressively lower amounts for more distant relatives.

For heirs subject to limited tax liability (e.g., non-residents inheriting German real estate), the exemption is reduced proportionally based on the share of German-situated assets relative to the total value of all inheritances and gifts received from the same person within the prior ten years.

Note: The exemption amounts are per heir, not per estate — meaning each eligible heir can claim their full statutory allowance against their individual share.

Statutory Text

Steuerfrei bleibt in den Fällen der unbeschränkten Steuerpflicht (§ 2 Absatz 1 Nummer 1) der Erwerb des Ehegatten und des Lebenspartners in Höhe von 500 000 Euro;

— ErbStG § 16 (1) — German Inheritance Tax Act
Statutory Text

der Kinder im Sinne der Steuerklasse I Nr. 2 und der Kinder verstorbener Kinder im Sinne der Steuerklasse I Nr. 2 in Höhe von 400 000 Euro;

— ErbStG § 16 (1) — German Inheritance Tax Act
Statutory Text

der Kinder der Kinder im Sinne der Steuerklasse I Nr. 2 in Höhe von 200 000 Euro;

— ErbStG § 16 (1) — German Inheritance Tax Act
Statutory Text

der übrigen Personen der Steuerklasse I in Höhe von 100 000 Euro;

— ErbStG § 16 (1) — German Inheritance Tax Act
Statutory Text

der Personen der Steuerklasse II in Höhe von 20 000 Euro;

— ErbStG § 16 (1) — German Inheritance Tax Act
Statutory Text

der übrigen Personen der Steuerklasse III in Höhe von 20 000 Euro.

— ErbStG § 16 (1) — German Inheritance Tax Act

What to Do

1

Confirm your tax class based on your relationship to the deceased (e.g., spouse, child, sibling, or unrelated person).

2

Calculate the gross value of your inheritance (including cash, property, investments, and debts assumed).

3

Subtract your applicable Freibetrag (e.g., €400,000 if you’re a child) from the gross value to determine the taxable base.

4

File an inheritance tax return (Erbschaftsteuererklärung) with the local tax office (Finanzamt) within three months of learning about the inheritance — extensions may be granted upon request.

Sources

statuteErbStG § 16 — German Inheritance Tax Act: Personal Tax Exemptions

Related Questions

Who inherits if there is no will?What is the forced share (Pflichtteil) and who is entitled?How do I disclaim an inheritance?Can gifts made before death affect the inheritance?

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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.