International inheritance tax – PRS International

Say you have recently lost your spouse. His or her assets are spread over several countries. You are in no state to handle the inheritance law and tax issues, though you face obligations to notify tax authorities abroad. When do these obligations have to be met? What information and documents are required? What other legal aspects do you need to consider? How is the monetary value of foreign real estate and businesses determined? I will take care of everything, including any coordination needed with experts abroad. All you have to do is answer the most important questions.

Inheritances can lead to unexpected tax issues. Imagine your and your spouse’s summer residence abroad is held through a foreign corporation. You have used it rent-free because it’s your home, but legally speaking it’s not your property. This makes a big difference for your tax liability. You have still to declare a hidden profit distribution, and you must notify the authorities of all your foreign shareholdings, as required by section 138, para. 2 of the German General Tax Law.

Say the values that you have declared for the foreign wealth tax are far below the “still justifiable” amount. This will become evident in the inheritance tax declaration abroad. In this case, you will need comprehensive consulting in close coordination with tax advisors in the foreign country or countries in question.

Finally, the death of a spouse will also confront you with a large amount of formal paperwork. What documents must you submit to foreign banks? Should you apply for a national certificate of inheritance or a European certificate of inheritance? How do you correct foreign register entries? The lawyers who work with me will guide you through the process.