Pension allowances for inheritance tax violate EU law

The EU Commission has called on Germany to make changes to its inheritance tax because, in its view, the restrictions on the pension allowance violate EU law.

The decedent's spouse or civil partner is entitled to a special pension allowance. However, this entitlement only exists if the heir, the testator or both were subject to tax in Germany, but not if only assets are inherited in Germany. The EU Commission is disturbed by this restriction and has therefore called on Germany to amend the law accordingly.