Glossary
Schenkungsteuer
Schenkungsteuer: Schenkungsteuer is German gift tax on gifts made during a person's lifetime. It follows the Inheritance and Gift Tax Act (ErbStG) and is only due if the value of the gift exceeds the recipient's personal allowance.
What is Schenkungsteuer?
If you give away assets during your lifetime, such as a property to your children, German gift tax (Schenkungsteuer) can apply. The same law applies as for inheritance.
Example
A child receives a house with a tax value of €500,000. After the €400,000 allowance, €100,000 is taxable. At 11% that is €11,000 in gift tax. If the mother keeps a usufruct, the tax can disappear entirely. Work through your case with the Gift Tax Calculator.
This page is for information only and does not replace tax advice.
Frequently asked questions
Schenkungsteuer means gift tax. In Germany it applies to gifts during a person's lifetime under the same law as inheritance tax.
Spouse €500,000, child €400,000, grandchild €200,000 (€400,000 if the parent has died), great-grandchild €100,000. Parents, siblings and everyone else get €20,000 on gifts. Each allowance applies per donor and recipient for ten years.
In principle the recipient, but the donor is also liable. The gift must be reported to the tax office within three months; for notarised gifts the notary does this.