Germany (DE)
Germany is Europe's largest economy and most populous country — a federal parliamentary republic of 16 states (Bundesländer) celebrated for its engineering prowess, rich cultural heritage from Beethoven to Bauhaus, world-famous Oktoberfest and Riesling wines, and one of the most comprehensive social safety nets in the world.
Estate & Inheritance in Germany
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
Germany has a formal and well-regulated inheritance legal system (Erbrecht) governed primarily by the Bürgerliches Gesetzbuch (BGB §1922 onwards). For expats, the key issues are: (1) German intestacy law may not match what you assume will happen; (2) close relatives cannot be fully disinherited (Pflichtteil); (3) inheritance tax allowances for non-family members are low; (4) under EU Succession Regulation (Brussels IV), you can elect your home country's law for your estate — but only if you state this explicitly in a written will. Without action, German law governs German assets. The Erbschein (certificate of inheritance) is required to access German bank accounts of the deceased.
Intestacy — What Happens Without a Will
If you die without a valid will in Germany, the gesetzliche Erbfolge (statutory succession) applies. The order: (1) Erste Ordnung — children and their descendants. A spouse inherits alongside children (typically ¼ with statutory matrimonial property regime). (2) Zweite Ordnung — parents and siblings, if no children. (3) Third order: grandparents. (4) Fourth order: great-grandparents. Unmarried partners receive NOTHING under intestacy law — only a valid will can protect a partner. Stepchildren are not automatically included. Foreign-born children are treated identically to German-born children.
Types of Valid Will
Handwritten Will
Holographisches TestamentEntirely handwritten (no typewriter, no computer, no dictation), dated with the day/month/year and place, and signed with your full name. No witnesses required. The simplest and cheapest form.
Legally valid in Germany without any registration. However, if unregistered, it may not be found after death.
Strongly recommended to register in the Zentrales Testamentsregister (Bundesnotarkammer) for ~€16 one-time fee. The register is checked automatically after every death reported in Germany.
Notarial Will
Notarielles TestamentDictated to or drafted by a German notary (Notar) in your presence. The notary verifies identity, reads the will aloud, and files it with the Zentrales Testamentsregister automatically. Legally bulletproof — much harder to contest.
Automatically registered and universally recognised in Germany.
Recommended for complex estates, significant German assets, business ownership, or when heirs are abroad. The notary can advise on EU Succession Regulation election and Pflichtteil implications.
Joint Will (Berlin Testament)
Berliner TestamentA joint will written by both spouses, naming each other as sole heir and a third party (usually children) as final heir on the death of the surviving spouse. Extremely common among German couples.
Binding on the surviving spouse — they cannot easily change the will after the first spouse's death.
Expats considering a Berliner Testament should be aware of its binding nature, especially if they have children from a previous relationship or may remarry. A notary should advise.
Forced Heirship
Germany's Pflichtteil (forced heirship) rule means that certain close relatives cannot be fully disinherited. Entitled persons: children (including adopted and illegitimate children), surviving spouse, and parents (only if no children). The Pflichtteil equals half the statutory intestate share — paid in cash by the estate. Example: if a child would inherit €50,000 under intestacy, the Pflichtteil is €25,000, payable even if the will leaves them nothing. It is possible to disown a Pflichtteilsberechtigter (entitled person) only in extreme circumstances (serious criminal acts against the testator — §2333 BGB). Unmarried partners have no Pflichtteil rights.
EU Succession Regulation (Brussels IV)
EU Succession Regulation (EU No. 650/2012, "Brussels IV") applies to all deaths from August 2015. Default rule: the law of the country where you habitually reside at death governs the entire estate (including foreign assets within the EU). For most expats in Germany, this means German law. Election option: you may explicitly elect the law of your nationality (e.g. UK, US, Australian state law) in a written declaration, ideally in a notarially certified will. This election must name the country whose law you choose. UK note: the UK is not bound by Brussels IV post-Brexit — a parallel choice of law clause in a UK will or a German notarial will may be needed. USA note: US state law governs US-located assets regardless; Brussels IV covers only EU-located assets.
Inheritance Tax
Erbschaftsteuer (inheritance tax) is levied on the beneficiary, not the estate. Germany uses three tax classes with dramatically different allowances: Class I (close family) is generous; Class III (strangers, unmarried partners) has a very low allowance of only €20,000. Unlike many countries, German inheritance tax applies to German-resident beneficiaries regardless of where the assets are located, and to non-resident beneficiaries for German-located assets.
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| Spouse / registered partner | €500,000 | 7–30% on amount above allowance |
| Children / stepchildren | €400,000 per child | 7–30% |
| Grandchildren | €200,000 per grandchild | 7–30% |
| Parents / siblings | €20,000 | 15–43% |
| Unmarried partner | €20,000 | 30–50% (Class III) |
| Other persons (friends, stepchildren not adopted) | €20,000 | 30–50% (Class III) |
Allowances renew every 10 years — gifts can be structured to use the allowance multiple times over a lifetime. The principal residence (selbstgenutzte Immobilie) inherited by a spouse or children who continue to live in it for 10 years is generally exempt from Erbschaftsteuer. Business assets may qualify for relief under §§13a–13b ErbStG. Professional advice is essential for estates over €500,000.
Cross-Border & Multi-Country Estates
Expats with assets in multiple countries face the most complex situations. Key issues: (1) A German holographic will is not automatically enforceable in the UK, USA, Canada, or Australia — each jurisdiction has its own probate rules. (2) Germany's Erbschaftsteuer applies even when assets are held abroad, if you are tax-resident in Germany. (3) Foreign inheritance may trigger double inheritance tax — Germany has few double inheritance tax treaties (notably with France, Sweden, Greece, and USA — though the Germany-US DTA on inheritance is partially contested). (4) US citizens must report German inheritances on IRS Form 3520 if over $100,000. Action: consult a Fachanwalt für Erbrecht with international experience and, if you have US assets, a US estate planning attorney.
Certificate of Inheritance
The Erbschein (certificate of inheritance) is issued by the Nachlassgericht (probate court, part of the Amtsgericht) and is Germany's official proof of heirship. German banks and the land registry require it before releasing assets or transferring property. A notarial will filed with the Testamentsregister may replace the Erbschein in some cases. Application: file with the Nachlassgericht of the deceased's last residence. Required documents: death certificate, will (if any), relationship certificates (birth/marriage). Cost: court fee based on estate value, typically €100–500. Processing: 4–12 weeks. EU Certificate of Succession (Europäisches Nachlasszeugnis) is available for cross-EU estate access.
Will Registration
The Zentrales Testamentsregister (Central Wills Register) is operated by the Bundesnotarkammer and automatically searched after every death reported in Germany. Registration ensures your will is found and acted on. Registration fee: ~€16 one-time. You can register: your own handwritten will (bring it to any notary), a notarial will (registered automatically by the notary). Non-German nationals who own German assets are strongly advised to register, as German authorities cannot search foreign will registers.
Living Will & Healthcare Power of Attorney
A Patientenverfügung (living will / advance healthcare directive) specifies your wishes regarding medical treatment if you become unable to communicate. It is legally binding on German doctors under §1901a BGB. A Vorsorgevollmacht (healthcare power of attorney) designates a person to make decisions on your behalf. Both documents should be: signed and dated, ideally notarially certified for hospitals that are cautious about enforcing informal documents, and registered with the Zentrales Vorsorgeregister (Bundesnotarkammer, ~€12 one-time). Keep a wallet card stating you have these documents.
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Estate & Inheritance
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