RUGE FEHSENFELD

About Us

For more than forty years RUGE FEHSENFELD is a leading tax law and accounting firm based in Hamburg Germany, specializing in inheritance tax services for clients located outside of Germany. Our team comprises experienced tax attorneys and certified public accountants (CPAs) dedicated to providing expert guidance and comprehensive solutions tailored to your unique needs. We advise heirs resident abroad, e.g. in the USA, Canada, the UK, South America and Asia, on the liquidation or administration of German assets, such as real estate, and assume all declaration obligations, such as the preparation and submission of obligatory German estate tax returns. We understand the complexities of German tax and inheritance laws and are committed to helping clients navigate the process with ease.

Our Services

• Estate Tax Planning: We offer strategic planning services to minimize tax liabilities for estates in Germany, ensuring that your assets are protected and your beneficiaries receive the maximum inheritance. We are not only certified estate lawyers but also certified tax lawyers.

• Tax Advisory: RUGE FEHSENFELD provides personalized tax advisory services, offering insightful guidance on various tax matters affecting estates. Our CPAs and tax lawyers not only calculate the accurate tax to be paid but also ensure the lowest possible taxation.

• Inheritance Tax Compliance: Our experts will guide you through the inheritance tax compliance process, assisting with documentation, filings, and communication with German tax authorities to ensure full compliance with legal requirements. Please note that according to Sec. 30 German Estate Tax Code the German tax office must be notified of the inheritance within three months of the deceased's death. Please note, that failure to comply with the deadline can be considered attempted tax fraud and might have criminal consequences.

• Asset Valuation: We provide accurate valuation services for estate assets, including real estate, investments, and other valuable possessions, to ensure proper assessment for tax purposes.

• Probate Assistance: Our team offers comprehensive probate assistance, guiding you through the legal procedures involved in settling an estate in Germany and handling all tax-related matters efficiently. We also provide support with the sale or management of assets and the communication with banks and insurance companies.

• International Estate Taxation: For clients residing outside of Germany, we provide specialized services to address the complexities of international estate taxation, including coordination with tax authorities in multiple jurisdictions. With our expertise in international taxation, we assist clients in navigating complex cross-border tax issues related to estates.

Why Choose Us?

• Expertise: Our team consists of highly skilled certified tax and estate attorneys and CPAs with in-depth knowledge of German tax and estate laws as well as international taxation.

• Client-Centric Approach: We prioritize the needs and goals of our clients, delivering tailored solutions and responsive service.

• Proven Track Record: With years of experience serving clients globally, we have a proven track record of success in estate tax planning and compliance.

• Personalized Service: We understand that every estate is unique, and we tailor our services to meet the specific needs and goals of each client.

• Efficiency: We prioritize efficiency and accuracy in all our dealings, ensuring timely and effective resolution of estate tax matters.

• Confidentiality: RUGE FEHSENFELD upholds strict confidentiality standards, always ensuring the privacy and security of our clients’ sensitive information.

Our Team

RUGE FEHSENFELD is an owner-managed law firm consisting of four partners, a total of nine CPAs and estate and tax lawyers and more than 40 other qualified employees, including tax clerks, tax specialists, and finance specialists. The majority of our employees have been loyal to the firm for many years and thus characterize our collegial firm culture.

FAQ – what you need to know about German Inheritance and Gift Tax

• Am I liable to German estate tax since I am not a tax resident of Germany? In case (i) the decedent was a German resident or (ii) assets, like real estate, are located in Germany German inheritance and gift tax will apply.

• Are there any tax allowances? The personal allowances are between EUR 20,000 and EUR 500,000 depending on the degree of relationship. There are also material allowances, e.g. for business assets (up to 100%) and household effects.

  Spouses and registered partners benefit from the highest tax-free allowance: They can inherit up to EUR 500,000 tax-free. Otherwise, the closer you are related to the deceased, the higher your tax-free allowance.

  For example, an allowance of EUR 400,000 applies to each child of the deceased and also to grandchildren - provided the deceased's children have already died. If they are still alive, an allowance of EUR 200,000 applies to each grandchild. The allowance for great-grandchildren or for parents who inherit from their children is EUR 100,000.

  For all other heirs, even if they are not related, the tax-free amount is EUR 20,000. Life partners or children of the deceased who were dependent on his or her financial support also benefit from additional pension allowances when it comes to inheritance taxation.
  

• How high is inheritance tax in Germany? If you inherit assets in excess of the respective tax-free amount, you must pay tax on the exceeding amount. The tax rates are between 7% and 50% depending on the degree of relationship and the amount of the estate. There are three tax brackets applicabel:

  The most favorable tax rate applies to tax class I (7% to 30%). It applies to spouses or registered partners, children and stepchildren as well as other close relatives.

  More distant relatives in tax class II (15% to 43%) receive the second most favorable tax rates. These include siblings and siblings' children, stepparents and parents-in-law, children-in-law and divorced spouses.

  The highest tax rates apply in tax class III (30% to 50%) for all other acquirers who are not related to the deceased.

  
  

• How do I avoid double taxation of inheritances? Germany has concluded double taxation treaties with some countries, e.g. the USA, so that the tax exemption of acquisitions can be considered. If no double taxation treaty is applicable, the tax paid abroad can at least be tax credited in Germany.

• Is tax payable when I sell a German property from the estate? If the deceased owned the property for at least ten years or lived in it themselves, there is generally no tax on the sale proceeds. In case you need support due to long distance, we are happy to assist you in the sales process. We also work closely together with trusted real estate agents all over Germany.

• Is there a German gift tax? Yes, gift tax is calculated according to the same principle as inheritance tax and applies if either (i) the donor or (ii) the recipient is tax resident in Germany or (iii) the gift is a real estate located in Germany.