German inheritance tax - tax free allowances
According to § 16 (1) ErbStG in case of unlimited tax liability (§ 2 (1) Nr. 1 ErbStG) the following tax free amounts apply:
Beneficiary is ... | Amount in EURO |
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 |
Situas taxation
In the case of 
situs taxation the allowance is only EUR 2000 unless a bilateral contract provides otherwise (see German - American agreement for the avoidance of double taxation). However, under § 2 Abs. 3 S. 1 ErbStG, which came into force in december 2011, the beneficiary can claim the full tax free amount if he chooses application of unlimited tax liability.
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.