Legal Advice on German Inheritance Tax for Assets in Turkey

German inheritance tax is governed by the Inheritance and Gift Tax Act (ErbStG). The law distinguishes between unlimited and limited tax liability.

Under Section 2(1) No. 1a ErbStG, unlimited tax liability applies if the decedent or the heir had their residence or habitual residence in Germany at the relevant time. In this case, the entire estate is subject to German inheritance tax, regardless of the country in which the individual assets are located. A Turkish property is therefore generally included in the tax base as well. A German national without a residence in Germany is also treated as a resident for these purposes, provided they have not spent more than five continuous years abroad.

If neither the decedent nor the heir has a connection to Germany in the sense described above, only limited tax liability applies under Section 2(1) No. 3 ErbStG. In that case, only certain domestic assets are taxed, for example German real estate or a shareholding in a German company. For an heir resident in Turkey whose decedent left behind only a German property, this limited tax liability will typically be the only basis for taxation.

The personal allowances are set out in Section 16 ErbStG and depend on the family relationship between the decedent and the heir. The closer the relationship, the higher the allowance and the more favorable the applicable tax class:

Spouses and children therefore receive a significantly higher allowance than distant relatives or unrelated third parties, who also face the steepest rise in tax rates.

The disclosure obligation under Section 30 ErbStG requires the heir to notify the competent tax office of the acquisition within three months of becoming aware of it. A late or omitted disclosure can carry consequences under tax criminal law.

Whether, and to what extent, unlimited or limited tax liability applies to an estate in Germany depends on the individual case. Schlun & Elseven’s inheritance lawyers review the specific situation and identify which disclosure obligations must be met in both Germany and Turkey.

Turkish inheritance tax is based on Law No. 7338 on Inheritance and Transfer Tax (Veraset ve İntikal Vergisi). Tax liability can arise from the location of the assets, from the heir’s residence in Turkey, or from the Turkish nationality of either the decedent or the heir. If the decedent or the heir is a Turkish national, Turkey will generally assert tax liability; it is typically excluded only where the heir is a foreign national with neither a residence in Turkey nor assets located there. Where the heir is resident in Turkey, the worldwide estate is generally subject to tax; without such a residence and without Turkish nationality, taxation is limited to assets located in Turkey, in particular real estate.

The amount of tax due varies by family relationship. Spouses, children, and grandchildren benefit from the highest allowances and the lowest tax rates, while more distant relatives and third parties are subject to considerably lower allowances and rates that can reach up to 10 percent. The exact figures are adjusted annually by decree and should be confirmed for the specific inheritance case.

The filing deadline depends on where the decedent died and where the heirs reside:

Payment can be made in installments over several years.

Late interest accrues if the deadline is missed. Only after the inheritance tax has been paid does the Turkish tax office issue the tax clearance certificate (Unbedenklichkeitsbescheinigung), without which neither the transfer of title in the land registry nor the release of bank accounts in Turkey is possible. For real estate located in Turkey, the officially determined market value is used as the basis for assessment. In practice, an apostilled death certificate and a certified translation of the German certificate of inheritance are typically required, among other documents.

The double taxation treaty between Germany and Turkey covers only income and net worth taxes, not inheritance and gift tax. On inheritance tax, Germany has concluded double taxation treaties with only a small number of states, including Switzerland, the United States, Denmark, France, Greece, and Sweden. No such treaty exists with Turkey.

In practice, this means that if an estate meets both the German and the Turkish connecting factors at the same time, for example because the decedent lived in Germany while also leaving behind a Turkish property, or because the heir is a Turkish national, the same asset can in principle be taxed by both countries at once. There is no treaty-based allocation rule that would automatically assign real estate to the state where it is located and movable assets to the decedent’s state of residence. Such an allocation would require an inheritance tax treaty, which is absent in relation to Turkey.

The remaining relief instead comes from unilateral provisions under each country’s national law, rather than from an international treaty.

Because no double taxation treaty exists, Section 21 ErbStG is the central legal basis for mitigating actual double taxation. The provision allows the inheritance tax paid and assessed abroad, in this case in Turkey, to be credited against German inheritance tax on request, to the extent it relates to the same foreign assets. The credit is limited to the corresponding portion of the German tax attributable to that foreign asset; any Turkish tax exceeding this amount is not refunded and remains an additional burden.

To claim the credit, proof of the Turkish tax actually paid must be submitted to the German tax office, typically using the Turkish tax receipt or the tax clearance certificate. Section 21 ErbStG also ties the credit to certain timing and substantive conditions, which must be reviewed on a case-by-case basis. On the Turkish side, Article 12 of the Turkish Inheritance and Gift Tax Law provides for a deduction of inheritance tax paid abroad from the Turkish tax base.

Because both credit mechanisms are unilateral, dependent on documentary proof, and capped in amount, double taxation can generally only be mitigated this way, not necessarily avoided entirely in every case. Early planning is therefore essential, whether as part of lifetime estate planning or, at the latest, immediately after the inheritance arises.

In practice, German-Turkish inheritance cases frequently reveal that assets in Turkey, such as bank balances, rental income from a Turkish property, or investment income, were not declared, or not fully declared, to the German tax office. This can affect both the decedent, who as a German resident with unlimited tax liability should have declared their worldwide income in Germany, and the heir personally, once they begin earning their own income from the Turkish assets after the inheritance.

Since Turkey participates in the automatic exchange of financial account information under the Common Reporting Standard (CRS), corresponding account data is now regularly transmitted to the German tax authorities. Undeclared Turkish assets are therefore becoming increasingly visible to the tax office, which raises the question of a voluntary disclosure granting immunity from prosecution under Section 371 AO.

If such a situation is not disclosed, tax evasion under Section 370 AO may apply, punishable by a fine or imprisonment of up to five years, or in particularly serious cases, such as the use of forged documents or abuse of public office, up to ten years.

A voluntary disclosure only leads to immunity from prosecution if it is complete and discloses, without gaps, every tax offense of a given tax type that is not yet time-barred, for the entire correction period; a partial disclosure is not sufficient and can cause the disclosure to lose its protective effect entirely. Immunity from prosecution also does not arise if the person concerned or their representative has already been notified of the initiation of criminal or administrative proceedings, or if the act had already been discovered at the time of the correction and the person disclosing knew or should have expected this.

Once the evaded amount reaches 25,000 euros per offense, Section 398a AO requires, alongside timely repayment, an additional graduated surcharge before immunity from prosecution takes effect: 10 percent for amounts up to 100,000 euros, 15 percent for amounts between 100,000 and 1,000,000 euros, and 20 percent for amounts above 1,000,000 euros.

Heirs who discover previously undeclared Turkish assets of the decedent in the course of the estate inquiry may also be able to rely on what is known as an heir’s disclosure under Section 153 AO, if they subsequently recognize that a tax return filed by the decedent was incorrect and promptly correct it.

Because the effectiveness of a voluntary disclosure depends heavily on the completeness of the disclosure, the correct timing, and the correct calculation of the back payment, early legal review before filing is strongly advisable.

For estates with assets in both countries, Turkish inheritance rules frequently give rise to what is known as estate splitting: the law of the state where the property is located governs immovable assets, while the law of the decedent’s last state of residence generally governs movable assets.

Transferring a Turkish property following an inheritance essentially requires the following steps:

1. Obtaining and apostilling the death certificate in accordance with the Hague Apostille Convention
2. Certified translation of the German certificate of inheritance for use in Turkey
3. Timely filing and payment of Turkish inheritance tax
4. Transfer of title at the competent Turkish land registry (Tapu Dairesi), with the involvement of all heirs or an authorized representative

A power of attorney granted in Turkey can make the personal presence of all heirs unnecessary. Before selling the property, it is also generally advisable to first resolve the community of heirs, to avoid joint and several liability for outstanding taxes. If a co-heir does not agree to the division, a judicial dissolution of the community of heirs can be applied for in Turkey.

Within the European Union, Regulation (EU) No. 650/2012 simplifies proof of heir status through the European Certificate of Succession. Because Turkey is not a member state of the European Union, this regulation does not apply in relation to Turkey, so proof of heir status must be established separately.

In Germany, the certificate of inheritance (Erbschein) is issued by the competent probate court on request; the procedure is governed by Sections 342 et seq. of the Act on Proceedings in Family Matters (FamFG).

In Turkey, the corresponding document, the Veraset Belgesi, is issued by the courts of peace or, where the statutory line of succession is clear, by a notary. For foreign nationals, the court route is generally required, since Turkish notaries can only access the Turkish civil registry. A German certificate of inheritance has no direct recognition in Turkey but can serve as evidence there once apostilled or certified by the competent Turkish representation. For the reverse situation, a foreign law certificate of inheritance relating to the Turkish assets can be requested from the German probate court.

Schlun & Elseven supports clients with all inheritance and tax law matters arising from estates connected to Turkey. This includes reviewing whether, and to what extent, unlimited or limited German inheritance tax is owed, as well as coordinating with the parallel Turkish inheritance tax filing.

Because there is no double taxation treaty covering inheritance tax between Germany and Turkey, Schlun & Elseven’s lawyers focus primarily on the requirements for the unilateral credit under Section 21 ErbStG, determine the creditable Turkish tax, and assist with the documentary proof this requires with the German tax office. Our lawyers for international inheritance law are also available to support the practical handling of estate splitting, including the transfer of Turkish real estate and obtaining the documents this requires. If the estate inquiry reveals that Turkish assets have not been declared, or not fully declared, to the German tax office, Schlun & Elseven’s tax law and tax criminal law lawyers also assist clients in reviewing and filing a voluntary disclosure granting immunity from prosecution under Section 371 AO, or an heir’s disclosure under Section 153 AO, calculating the tax owed, and handling the subsequent correspondence with the tax office.

In addition, our lawyers assist clients with the recognition of foreign testamentary dispositions, as well as applying for a German certificate of inheritance or a foreign law certificate of inheritance for assets located in Turkey. Clients with a German-Turkish inheritance case receive coordinated support covering both the German and the Turkish side of the estate. Contact our inheritance lawyers to review your specific situation and identify the filing deadlines and credit options that apply to your case.