A Hamburg canal: German property is taxed in Germany even when neither the deceased nor the heir lives there

Inheritance and probate in Germany: what happens to a foreign owner's property.

Inheriting in Germany. EUR 400,000 per child, then 7%+. Brinkman Data brand card.

// Short answer

German property is taxed in Germany even when neither the deceased nor the heir lives there. A spouse has up to EUR 500,000 free and each child up to EUR 400,000, siblings and others EUR 20,000, cut in proportion when neither the deceased nor the heir lives in Germany. One rate then applies to the whole taxable amount: 7% to 30% for close family, 15% to 50% for others. Which law decides the shares follows the EU Succession Regulation, and the land register accepts only a certificate of inheritance, a European Certificate of Succession or a will in a public document, such as a German notarial will.

Rules and rates as of October 2026. This explains the rules and where they are written; it is not legal advice on an estate.

Which country's law decides who inherits German property?

The EU Succession Regulation: by default the law of the country where the owner last lived, unless the will chooses the law of their nationality. Recording the heir in the land register (Grundbuch) still follows German rules. For an owner who lives outside the EU, that country's own rules can send the German property back to German law (article 34); choosing the law of your nationality in the will avoids that.

A written will is valid in form if it meets the law of the place it was made, the testator's nationality, domicile or habitual residence, or, for property, the law where it is. Germany applies the 1961 Hague Convention on the form of wills for this, in place of the Regulation's own rule.

Who must inherit under German law?

When German law applies, children, parents and the spouse who are left out of a will can claim a compulsory share (Pflichtteil) worth half of what they would have inherited without one.

It is a money claim against the heirs, not a share of the property itself.

How much inheritance tax does a foreign heir pay in Germany?

Where neither the deceased nor the heir lives in Germany, the tax applies only to German assets, and German property counts. Allowances and rates depend on the heir's class.

HeirAllowanceRate on the whole amount
Spouse€500,0007% to 30% (class I)
Child, stepchild€400,0007% to 30% (class I)
Sibling, niece, nephew, in-law€20,00015% to 43% (class II)
Anyone else€20,00030% to 50% (class III)

The rate is not banded: one rate, set by the size of the taxable amount, applies to all of it (section 19). Where neither the deceased nor the heir lives in Germany, the allowance is cut in proportion to the non-German assets received at the same time or from the same person within ten years (section 16(2)); a non-resident heir of an owner who lived in Germany keeps the full allowance. A German national stays fully liable for five years after moving abroad. Yearly taxes as owner: Germany property tax for foreigners.

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How does a German inheritance work, and how long does it take?

The heir notifies the tax office within three months of learning of the inheritance. To change the land register, the heir needs a certificate of inheritance (Erbschein) from the probate court, a European Certificate of Succession, which only an EU Member State can issue, or a will in a public document, such as a German notarial will, with its opening record. A UK or US witnessed will is not a public document, so the registry can still ask for an Erbschein.

An heir who wants to disclaim has six weeks, or six months if the deceased last lived only abroad or the heir is abroad. Heirs abroad can apply for the Erbschein through a German mission. No official source gives a typical total length. The register itself: the Grundbuch explained.

Frequently Asked Questions

Do non-residents pay inheritance tax in Germany?
Yes, on German assets including property, even when neither the deceased nor the heir lives in Germany.
What is the inheritance tax allowance in Germany for a child?
EUR 400,000 per child and EUR 500,000 for a spouse, cut in proportion if neither the deceased nor the heir lives in Germany. Above that, one class I rate from 7% to 30% applies to the whole taxable amount.
Do I need an Erbschein to inherit German property?
Usually. The land register accepts an Erbschein, a European Certificate of Succession, or a will in a public document such as a German notarial will; a UK or US witnessed will is not enough on its own.
How long does probate take in Germany?
No official timeline is published. The heir must notify the tax office within three months of learning of the inheritance.

Header photo: Dietmar Rabich, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.

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Disclaimer

Brinkman Data Analytics is an independent research service. Not financial, investment, tax, or legal advice. All yield figures are estimates based on historical research data and are not guaranteed. International real estate carries risk of partial or total loss of capital.