Category

German Tax Law

German LawGerman ProbateGerman Succession & Inheritance LawGerman Tax Law

Not only German Grant of Probate …

... is necessary for a foreign beneficiary to be able access the German estate. In addition to a Certificate of Inheritance (details here) the banks, insurance companies or other third parties that hold assets of the deceased will demand to see a Certificate of Non-Objection or Tax Clearance Certificate (in German called "Unbedenklichkeitsbescheinigung") issued by the German Tax authorities (Finanzamt). The reason for this is that according to Section 20 para. 6 German Inheritance Tax…
Bernhard Schmeilzl
September 23, 2014
Business in GermanyGerman Labor LawGerman Tax LawStarting Business

Beware of the horrid Monster of German Labour Law: Ficticious Self-Employment

The biggest fear of any German HR department: Having covert salary employees among their workforce German labour law is strictly regulated and employees are well protected against dismissal if the employer’s workforce exceeeds 10 full time employees (details here). Furthermore, German wage tax (Lohnsteuer), health insurance, social security and state pension contributions are rather hefty (for more see here: Statutory Pension Insurance in Germany). Therefore, to try to avoid these labour costs, some employers but…
Bernhard Schmeilzl
July 24, 2014
Business in GermanyBusiness Tax & Fiscal ObligationsGerman Corporate LawGerman Labor LawGerman Tax LawStarting BusinessStarting or Expanding Business

London Chamber of Commerce: 10 practical tips for doing business in Germany

In this issue of „London Business Matters“, the London Chamber of Commerce's monthly magazine, German corporate and business lawyer Bernhard Schmeilzl has compiled "10 Top Tips when starting a Business in Germany". The magazine also contains helpful information about the trading relations between the UK and Germany. Just browse the online issue. For more details on how to establish a business in Germany please see the articles below 3 Ways to expand your Business to…
Bernhard Schmeilzl
July 23, 2014
German ProbateGerman Succession & Inheritance LawGerman Tax Law

Can foreign Taxes be set off against UK Inheritance Tax?

Unilateral Inheritance Tax Relief in British-German Probate Matters If a legator was domiciled (or legally deemed to be domiciled) in the UK and possessed assets in other countries, then HMRC will levy inheritance tax on the entire estate, i.e. all assets worldwide (see here). The problem is: Other jurisdictions may employ an entirely different inheritance tax system and also demand inheritance tax. Germany, for example, does not use domicile but citizenship (nationality) and residency to…
Bernhard Schmeilzl
July 4, 2014
German ProbateGerman Succession & Inheritance LawGerman Tax Law

How to apply for a German Grant of Probate

First, you need to make the right choice about which German Grant to apply for The German equivalent of a UK Grant of Probate is the Certificate of Inheritance (Erbschein). Less common is its “little brother”, the Certificate of Executorship (Testamentsvollstreckerzeugnis). Both documents are issued by the Nachlassgericht which is the probate department of the respective local District Court (Amtsgericht). Who needs an Erbschein? As we have explained here, German law applies the principle of…
Bernhard Schmeilzl
June 30, 2014
Business in GermanyBusiness Tax & Fiscal ObligationsGerman Labor LawGerman Tax LawStarting BusinessStarting or Expanding BusinessTrustee & Escrow Services

10 Things to do when starting a German Business

Get started on the fast track If you have read our previous postings "Guide for doing Business in Germany", "Establish a German Limited Company (GmbH): FAQ and Checklist" and "Open a Business Bank Account in Germany?" you already have a pretty good idea how to go about starting your own German business. With this posting we provide ten - personal and probably subjectively biased - practical tips how to get a head start: #1: Choose…
Bernhard Schmeilzl
August 9, 2013
German ProbateGerman Succession & Inheritance LawGerman Tax Law

UK Citizens with Property in Germany: Do I need a separate Will?

The Basics of British-German Inheritance Cases When a British expat lives in Germany for some time, he or she will most probably have a German bank account and other German assets, maybe even have bought property over here. The majority of these British expats have never thought about the inheritance law implications of such foreign assets. They simply assume that UK law applies. This is, however, not always the case. Especially if German probate law…
Bernhard Schmeilzl
July 1, 2013
German ProbateGerman Succession & Inheritance LawGerman Tax Law

German Inheritance Tax Rates and Personal Tax Exempt Amounts

What is the German IHT Nil-Rate Band? German inheritance law, including inheritance tax law, works very differently from the UK system (for German probate see here and here). While in the UK the estate as such is taxed (with one single nil-rate band of currently 325k GBP being available as tax relief) you find a completely different inheritance tax concept in Germany: German tax authorities do not look at the estate but at the individual…
Bernhard Schmeilzl
July 1, 2013