Germany-Ireland cross border inheritance tax Guide
Last updated: 30 Sep 2025
Germany × Ireland: Inheritance & Gift Tax — No Treaty
There is no bilateral inheritance/gift tax treaty between Germany and Ireland. Double-tax mitigation is achieved via Ireland’s CAT unilateral/double-tax relief and Germany’s § 21 ErbStG (credit for foreign death duties on foreign-situs assets). Note that the DE–IE income and capital tax treaty is separate and does not govern inheritance/gift tax.
Ireland confirms it has only two CAT treaties (UK, USA). For Germany, relief is via § 21 ErbStG; the DE–IE income/capital DBA is separate.
At a glance
No DE–IE IHT treaty
- Relief is via Ireland’s unilateral/double-tax relief and Germany’s § 21 ErbStG credit.
- Income/capital treaties exist but do not apply to IHT/CAT.
Why this matters
- Correct situs classification and documentation drive credit capacity.
- CAT is charged to the beneficiary (aggregation since 5 Dec 1991).
What taxes can bite?
| Country | Tax & trigger | Scope highlights |
|---|---|---|
| Ireland | Capital Acquisitions Tax (CAT) on gifts & inheritances | Standard rate 33%; thresholds Group A/B/C; aggregation of prior benefits since 5 Dec 1991. |
| Germany | Erbschaft-/Schenkungsteuer on acquisitions by the heir/donee | Worldwide scope if decedent or heir is a German resident (Inländer); otherwise German-situs assets. |
Relief in practice: Ireland & § 21 ErbStG
- Ireland (CAT):
- Credit for Double Taxation where the same foreign property is taxed abroad and in Ireland.
- Unilateral Relief for foreign property even without a treaty, subject to conditions, documentation and caps.
- Germany (§ 21 ErbStG): Credit for foreign death duty on foreign-situs assets, rechnerisch objektbezogen und staatenweise; deutsche Steuer auf das ausländische Objekt muss innerhalb von 5 Jahren entstehen.
Documentation: valuations at death, situs evidence, foreign assessments and proof of payment are essential on both sides.
Situs drivers (high level)
| Asset | Situs (typical) | Comments |
|---|---|---|
| Immovable property | Where located | Primary taxing right usually at situs. |
| Tangible movables | Physical location at death/transfer | Inventory + location proofs matter. |
| Bank claims / deposits | Debtor location (bank) | Keep bank domicile evidence. |
| Shares / stock | Place of incorporation | IE PLC → IE situs; German GmbH → DE situs. |
Irish CAT: rate & thresholds
CAT standard rate: 33%. Since 2 Oct 2024, thresholds are: Group A €400,000, Group B €40,000, Group C €20,000 (lifetime aggregation since 5 Dec 1991). Always confirm current thresholds on Irish Revenue before filing.
| CAT Group | Relationship | Threshold (since 2 Oct 2024) | CAT rate |
|---|---|---|---|
| Group A | Child (incl. adopted/step/certain foster); parent in limited cases | €400,000 | 33% |
| Group B | Sibling, niece/nephew, lineal ancestor/descendant | €40,000 | 33% |
| Group C | All other beneficiaries | €20,000 | 33% |
See Irish Revenue: CAT thresholds & rates; Budget 2025 updates increased the thresholds.
Worked example (numbers)
- Decedent: German resident (Inländer) at death.
- Heir: Child resident in Ireland (Group A).
- Assets:
- German GmbH shares (DE-situs): €1,200,000
- Irish bank deposit (IE-situs): €300,000
- Assumptions (illustrative only): Ignore debts/reliefs beyond basic allowances; focus on credit mechanics.
For credit: portion attributable to IE-situs deposit is separable für § 21 ErbStG.
Apply Group A threshold (€400k) across total. CAT @ 33% on excess.
IE-situs deposit is clearly within Irish scope; German GmbH shares are foreign property (credit possible on that slice if also taxed in IE).
Germany: For the IE-situs deposit, apply § 21 ErbStG credit up to the German tax attributable to that deposit, provided German tax on that object arises within 5 years of the Irish assessment.
Illustration only (rounded; ignores spouse/charity/business reliefs, debts, valuations, FX). Actual outcomes depend on precise values, allowances and filings (DE ErbSt return; IE IT38).
Planning checklist (no legal/tax advice)
- Map assets by situs (DE vs. IE) and type; identify overlap assets early.
- Compute credits: IE unilateral/double-tax relief (same property) and DE § 21 credit (foreign-situs; 5-year timing).
- Paper the file: valuations at death, situs evidence, foreign assessments and payment proofs.
- Sequence lifetime gifts vs. bequests; remember CAT aggregation since 5 Dec 1991.
- Treaty boundary: DE–IE income/capital DBA ≠ inheritance/gift — don’t rely on it for IHT/CAT.
FAQ
Is there a Germany–Ireland inheritance/gift tax treaty?
No. Ireland notes it has CAT treaties only with the UK and the USA. Relief with Germany is via unilateral/credit mechanisms and § 21 ErbStG on the German side.
What is the CAT rate and current thresholds?
CAT rate is 33%. Thresholds (since 2 Oct 2024): Group A €400,000, Group B €40,000, Group C €20,000. Always confirm on Irish Revenue.
Does the DE–IE income tax treaty help here?
No. It covers income/capital taxes and does not govern inheritance/gift tax.
Talk to us
We build side-by-side DE × IE computations (credits, timing tests) and prepare credit-ready files.