German inheritance tax frightens ordinary families more than it hits them: the personal allowances (500,000 € spouse, 400,000 € child) cover most estates entirely. But one duty is forgotten: report the inheritance to the tax office within 3 months, even with no tax.
Inheritance: Tax and Allowances
The estate is subject to inheritance tax, but with high personal allowances: 500,000 € for a spouse, 400,000 € per child. Many families pay no tax at all — but everyone must report the inheritance to the tax office.
✓ Verified: 18/07/2026
WHAT TO DO
AUTHORITY
Nachlassgericht (Amtsgericht)
Federal agencyCertificate of inheritance, opening of the will and disclaiming an inheritance all go through the Nachlassgericht (a division of the Amtsgericht) at the deceased's last place of residence.
Where to go in your city →› Details and tips
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Max recommends:
I reported the inheritance to the tax office with a short letter in the first weeks — no tax was due thanks to the allowance, but the reporting duty was met. The office replied that no return was needed.
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Lea recommends:
For distant relatives and friends the allowance is only 20,000 € with a high tax class — here the tax bites. For such a planned inheritance, provide early (spaced gifts, a will): after death few options remain.
FREQUENTLY ASKED QUESTIONS
How much inheritance is tax-free? ▾
Personal allowance: spouse 500,000 €, each child 400,000 €, grandchildren 200,000 €, others (friends, distant relatives) only 20,000 €. Only the excess is taxed — so most family inheritances pay no tax.
Must I report the inheritance if no tax is due? ▾
Yes: § 30 ErbStG requires notifying the tax office within 3 months regardless of amount. The office then decides if a return is needed. Concealing it is a violation.
I inherit my parents flat — tax? ▾
The family home is tax-free for the spouse if kept in use, for children if used and up to 200 m². Otherwise market value minus the allowance applies. On large property the tax is real — plan for it.