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bigduckontax, Accountant
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I am a German citizen, living in the UK (exercising treaty

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I am a German citizen, living in the UK (exercising treaty rights) for 3 years now. If my German parents make me a financial gift from the sale of a property in Germany / or if I were to inherit the property, where would I have to pay taxes on it? I would
say in the UK, right? Everybody else is trying to tell me, that I am “inheriting” in Germany, so I would have to pay inheritance tax in Germany. How is right!?
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to assist you with your question. As far as UK taxation is concerned there is no tax on a beneficiary of a gift or a legacy receiving same. However, in Germany the situation is rather different. As I understand it German Inheritance Tax and Gifts Tax are within the same regime and any tax due is the liability of the beneficiary, not the donor. There exists under the German tax regime a Personal Exempt Allowance of 400K Euros per child, so if they give you a house up to this value you would escape German tax also. The amount exceeding this tax exemption will be taxed at a rate which again depends on the personal relationship of the beneficiary to the donor and can range from 7% up to 30%. Here is the tax range for the amount over 400K: 75000 7%300000 11%600000 15%6 million 19%13 million 23%26 million 27%more than 26 million 30% So you see your possible liability under German tax law depends upon the value of the property transferred. I do hope that I have been able to shed some light on the position and cleared up some of the confusion.
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