German gift tax - tax free allowances
The following article outlines the legal situation under the German inheritance and gift tax act ( Erbschafts- und Schenkungsteuergesetzes, herafter: ErbStG) for taxable acquistions after January 1st 2009.
tax free allowances
The taxpayer can claim the following tax free allowances:
Beneficiary is ... | Tax Class |
The spouse of the deceased | 500.000 |
Divorced spouse | 20 000 |
Registered same sex registered partner | 500.000 |
Children of the deceased (including step-children) | 400 000 |
Children of a predeceased child the deceased | 400 000 |
Offspring of living children of the deceased | 200 000 |
Parents and other ascendants (acquisitions mortis causae) | 100 000 |
Siblings of the deceased | 20 000 |
Nieces and nephews | 20 000 |
Step-parents | 20 000 |
Parents-in-law | 20 000 |
Daughters-in-law and sons-in-law | 20 000 |
All other recepients | 20 000 |
Beneficiary is ... | Tax Class |
The spouse of the deceased | I |
Divorced spouse | II |
Registered same sex registered partner | I |
Children of the deceased (including step-children) | I |
Children of a predeceased child the deceased | I |
Offspring of living children of the deceased | I |
Parents and other ascendants (acquisitions mortis causae) | I |
Siblings of the deceased | II |
Nieces and nephews | II |
Step-parents | II |
Parents-in-law | II |
Daughters-in-law and sons-in-law | II |
All other recepients | III |
Situas taxation
In the case of 
situs taxation the allowance is only EUR 2000 (old law: 1.100,00) unless a bilateral contract provides otherwise (see German - American agreement for the avoidance of double taxation).
Renewal period
The tax free allowance renews every ten years (see § 14 ErbStG)
Inter persona
Please note that the tax free allowances are granted inter persona.
Example:
A gives EUR 400.000 to his son B and EUR 400.000 his daughter C. No taxas are due.