German tax resident (Inländer)

The worldwide transfer upon the death of a person is subject to German inheritance tax, if either the beneficiary or the deceased is a German (deemed) tax resident (Inländer) at the time when the tax arises (e.g. date of death). See § 2 ErbStG.

An individual is a (deemend) German tax resident for inheritance and gift tax purposes, if

  • he/she has either a residence (§ 8 AO) or a habitual abode (§ 9 AO) in Germany. 
  • he/she is a German citizen who has not lived abroad for continuous time of 5 years without having a residence in Germany (extended unlimited inheritance tax liability),
  • he/she is a German citizen employed by a German authority abroad (e.g. Germany Embassy).

A corporation, a partnership, an association and/or a foreign pool of assets (Vermögensmasse) is a German taxpayer, if its registered office (Sitz) or place of effective management (Geschäftsleitung) is situated in Germany.