Family home (Familienheim)

The acquisition of a family home in the EU or the EEA is tax-exempt certain conditions are met. These are set out under Section 13 (1) No. 4a ErbStG (acquisition by the spouse inter vivos) or Section 13 (1) No. 4c ErbStG (acquisition by the spouse inter vivos) or Section 13 (1) No. 4c ErbStG (acquisition by a parent inter vivos). According to the wording of Section 13 (1) No. 4c ErbStG, a family home is a dwelling located on a developed property within the meaning of Section 181 (1) No. 1 BewG, which the donor (parent, spouse) used for his or her own residential purposes until the transfer (inheritance or gift) and which the acquirer either also used in this way or which is intended for his or her own use for his or her own residential purposes without delay (BFH, ruling dated May 28, 2019, II R 37/16). A dwelling is intended for personal use for their own residential purposes if the acquirer intends to use the dwelling himself for their own residential purposes and actually implements this intention. The intention of the acquirer to use the dwelling for his own purposes can be determined as an internal fact only based on external circumstances. This requires that the acquirer moves into the apartment and uses it as a family home for his own residential purposes. The mere election for personal-use -- for example, by stating it in the inheritance tax return -- is not sufficient (BFH ruling of October 5, 2016 - II R 32/15, BFHE 256, 359, BStBl II 2017, 130, para. 10). The concept of a family home also requires that the acquirer/transferor has the centre of his vital interest there (see BFH ruling in BFHE 256, 359, BStBl II 2017, 130, para. 10). Therefore, second or vacation homes are not eligible (cf. BFH ruling of July 18, 2013 - II R 35/11, BFHE 242, 153, BStBl II 2013, 1051, marginal no. 9). It is not an issue if the child, e.g. as a commuter, has several residences as long as the family home forms his or her centre of life (cf. BTDrucks 16/11107, p. 8 f.).