Ultimo aggiornamento: 6 Nov 2025
Germany–US Inheritance Tax – Coordination & §21 Credits
From valuation evidence to foreign tax proofs: this page outlines the end-to-end workflow to coordinate Germania-USA filings, compute § 21 ErbStG credits, synchronize timelines, and prepare audit-ready documentation.
Who does what? Treaty allocation, §21 computation, and cross-border timelines are coordinated here.
National filings are handled by our teams:
🇩🇪 Servizio tedesco per l'imposta di successione -
🇺🇸 Servizio imposte sul patrimonio/eredità negli Stati Uniti.
Contenuti
1) Filing workflow at a glance
| Phase | Germany (ErbStG) | Stati Uniti | Note |
|---|---|---|---|
| Scoping | Residency, scope (worldwide vs. German-situs), heirs per person | Domicile, gross estate, US-situs vs. non-situs assets | Align on treaty/tie-breakers; identify state tax exposure |
| Valutazione | BewG methods (real estate), simplified earnings / expert report (business) | FMV @ date of death, appraisal standards, discounts where applicable | Keep reconciliations; one evidence set across both filings |
| Documentazione | Heir acquisition breakdown, debts, allowances, exemptions | Form 706 pack (or state returns), schedules, attachments | Translations/Notarization where required |
| §21 credit | Compute German tax attributable to foreign assets (per country) | Provide foreign tax assessments & proof of payment | Credit = lower of foreign tax or German tax on foreign slice |
| Presentazione | File with Finanzamt; respond to queries | File IRS/state returns; obtain assessments | Sync sequences to avoid timing gaps |
2) Valuations (BewG vs. FMV) & evidence
- Real estate (DE): statutory valuation per BewG/ImmoWert-inputs; owner-occupied vs. rented treatment.
- Business interests (DE): simplified earnings method / expert report (e.g., IDW S 1); track passive assets & cash tests for §§13a/13b.
- US (706): FMV at death; consistent appraisals for property, closely-held shares, and portfolio positions.
- One evidence set: maintain a joint valuation memo; reconcile DE taxable base to US gross estate.
Deep dive: Real estate & business assets
3) Foreign tax proof & payments
- Collect assessments (IRS/state) and official prova di pagamento for estate/inheritance taxes.
- Document situs classification and value allocation per asset/country.
- Traccia allowances/exemptions used abroad to match the foreign taxable base credited in Germany.
4) §21 ErbStG credit computation (step-by-step)
- Compute German base per beneficiary (after allowances, deductions).
- Isolate foreign assets by country; determine German tax attributable to that slice.
- Collect foreign tax paid on the same slice (IRS/state). Ensure comparability (inheritance/estate tax).
- Credit rule: credit the lower of (a) foreign death tax paid or (b) German tax on that foreign slice.
- Evidence pack: assessments, payments, valuations, situs memo, allocation schedules.
Concepts explained in: Foreign citizens: §21 overview
5) US forms & state taxes (coordination)
- Federale: Form 706 (+ schedules), appraisals, executor statements, elections.
- Stato: estate/inheritance tax returns where applicable (see Imposte statali).
- Sync with Germany: align filing windows so German §21 can credit foreign tax without delay.
6) Timelines & interest risk
Germany – typical sequence
- Notification & data collection
- Valuation evidence compiled
- German return & §21 computation
- Assessment, queries, credit confirmation
United States – typical sequence
- Executor appointment & inventory
- Appraisals & Form 706 (and state returns)
- Assessment & payment
- Issue official proofs for German credit
Mitigate interest by sequencing US payment before or alongside the German assessment where feasible.
7) Data room & translation standards
- Set up a shared, access-controlled data room with index, versioning, and audit trail.
- Keep bilingual labels; translate key documents (certified where required).
- Name files consistently (YYYY-MM-DD_country_asset_doc-type.pdf) to support allocation and timeline proofs.
Next steps & resources
Start coordination
We manage both national filings and the cross-border credit process from one desk.
Correlato: Pianificazione - Executor & administration - FAQ