The ECJ has held that the § 16 of German inheritance and gift tax law breaches the provisions on the free movement of capital contained in article 56 of the EC Treaty. Under German tax law, a tax exemption on gifts of up to €500 000 is granted to German residents (depending on the degree of kinship), whereas this exemption is only €2 000 if both the donor and the donee are not resident in Germany. Equivalent provisions also apply in the case of gift tax. The ECJ considers that these provisions are discriminatory and constitute an unjustified restriction on the free movement of capital, as provided for in Article 63 of the Treaty on the Functioning of the European Union and Article 40 of the European Economic Area Agreement. Such provisions could dissuade citizens living abroad from investing in property located in Germany.
Do You have any Questions?
We look forward to assisting you. For the sake of simplicity and efficiency, we request that you use our contact form for your inquiry and describe the matter as clearly as possible. In addition, you can include relevant attachments. After submitting your inquiry, we will contact you either by telephone or e-mail within 2 working days. If we can assist, we will suggest a time and date for an initial consultation. Of course, you can also contact this firm or a particular attorney directly to make an appointment for a personal consultation or telephone consultation (find contact details here). Please be advised that no attorney-client relationship is created by sending us an email or filling out this contact form. For information on our fees, please click here.
