When you inherit from a spouse in Germany, inheritance tax is not automatically due. What matters is the exemption allowance, the tax class and the value of the estate above that allowance. This guide explains both rules with the statutory text and a worked example.
Short answer: Spouses and registered partners receive an allowance of 500,000 euros under section 16(1) no. 1 ErbStG (in German). Under section 15(1) ErbStG (in German) they belong to tax class I. The allowance reduces the taxable acquisition before the tax is calculated. An estate below 500,000 euros therefore remains tax-free (legal status 2026).
The most important points at a glance
- Spouses and registered partners receive an allowance of 500,000 euros under the inheritance tax law.
- They belong to tax class I, which applies to inheritances within the closest family.
- The allowance reduces the taxable acquisition. Tax is only levied on the amount above it.
- Whether and how much tax is due depends on the whole estate and on possible further deductions.
- Inheritances must be reported. The responsible tax office sets out the form and procedure.
How high is the allowance for spouses?
Under section 16(1) no. 1 ErbStG (in German), the allowance for a spouse and a registered partner is 500,000 euros. The provision sits in the section on allowances and sets the levels for further groups of persons. Children in tax class I receive 400,000 euros under no. 2, and children of children receive 200,000 euros under no. 3.
| Group of persons | Allowance | Legal basis |
|---|---|---|
| Spouse and registered partner | 500,000 euros | Section 16(1) no. 1 ErbStG |
| Children in tax class I | 400,000 euros | Section 16(1) no. 2 ErbStG |
| Children of children in tax class I | 200,000 euros | Section 16(1) no. 3 ErbStG |
The table shows that the spouse receives the largest allowance. For many couples the estate lies below this limit, so no tax arises. Anyone leaving a house, a business or substantial financial assets should still have the valuation checked.
Why does tax class I matter?
Under section 15(1) ErbStG (in German), spouses and registered partners belong to tax class I. Children, stepchildren and parents fall under further numbers of the same class. Together with the value, the tax class determines which rate applies. The rates are taken from the tariff in the law, which is why this guide gives no percentages.
The difference to other heirs therefore lies in two points: the higher allowance and the more favourable tax class. Both apply regardless of whether the inheritance rests on a will or on statutory succession. The form of the estate decides who actually receives what.
What does a calculation with the allowance look like?
Assumption: The estate amounts to 700,000 euros, and the surviving spouse is the sole heir. Simplified and without further deductions, the result is: 700,000 euros minus the 500,000 euro allowance gives a taxable acquisition of 200,000 euros. The tax is then calculated on this amount according to the tariff the law sets for tax class I.
In practice further items arise, such as liabilities, household contents or funeral costs, and they affect the taxable acquisition. The calculation above is therefore only a guide. If you need an exact figure, have the estate valued and ask the responsible inheritance tax office.
How does a gift between spouses work?
The rules for gifts differ from those for inheritances, even though the spousal allowance is also based on the same provision. Anyone who wants to transfer something to a partner during their lifetime should know the limits and reporting duties. The details are described in Gift to a partner: tax allowance and limits (in German).
A gift during lifetime can make sense as protection, but it should not be made without looking at the overall situation. Whoever gives away property loses ownership and cannot simply take it back later.
What role does the matrimonial property regime play?
The matrimonial property regime influences how much the surviving partner inherits if there is no will. Statutory succession and the accrued gains regime interact here. Anyone who wants to understand the differences will find the basics in Separation of property or accrued gains (in German). A will can regulate the distribution explicitly.
Whether a will makes sense is also worth considering early. The guide Will for young adults: when it becomes sensible (in German) shows the situations in which it matters before anything happens.
How does reporting an acquisition work?
An inheritance must be reported to the responsible inheritance tax office where the law requires it. Whether and in which form this happens follows from the individual situation and the notice of the tax office. Anyone who misses the report risks unnecessary trouble, so it is wise to contact the office early.
Which mistakes often occur with inheritances between spouses?
The most frequent mistakes arise not in the tax itself but in the valuation and the paperwork. Anyone who estimates property by its purchase price often departs from the value the law requires, the common value. Anyone who forgets bank accounts, securities accounts and insurance contracts underestimates the estate. Liabilities are sometimes not recorded in full either.
- Equating property with its purchase price although another valuation basis applies
- Failing to list all bank accounts, securities accounts and insurance contracts
- Deducting liabilities and funeral costs without proof
- Missing the deadline for the report because post goes to an old address
Anyone who deals with these points early saves time when filing. A continuously maintained list of receipts is the most effective tool for this. It also helps the heirs to follow the details together when several people are affected.
Frequently asked questions
Is an inheritance between spouses always tax-free?
No, not always. Only the part of the acquisition that exceeds the 500,000 euro allowance is taxable. If the value lies below it, no tax is due. Whether an acquisition becomes taxable beyond that depends on the valuation and the deductions.
Does the allowance also apply to registered partners?
Yes. The wording of section 16(1) no. 1 ErbStG (in German) expressly names the spouse and the registered partner. Both therefore receive the same allowance of 500,000 euros. Tax class I also applies to both under the section mentioned.
Do I have to report the inheritance to the tax office?
The inheritance must be reported, and the tax office requests the details. The form, the deadline and the documents follow from the letter of the responsible office. A query before filing clarifies the procedure before mistakes are made.
When is professional advice worthwhile?
If the estate includes property, business shares or several accounts, a valuation is helpful. A specialist adviser can also prevent mistakes with a will, gifts and joint assets. The process of a personal consultation at Academycon is described on the page How we work (in German).
What you should do now
- Determine the value of the whole estate, including property and accounts.
- Deduct liabilities and funeral costs and check possible further deductions.
- Calculate the taxable acquisition after deducting the 500,000 euro allowance.
- Report the acquisition on time to the responsible office.
Related articles
- Family, Partnership and Money: The overview for young adults
- Gift to a partner: tax allowance and limits
- Inheritance between partners: what applies without a will
- Separation of property or accrued gains
- Will for young adults: when it becomes sensible
Sources: Section 16 ErbStG, allowances (German), legal text, Section 15 ErbStG, tax classes (German), legal text.
Last updated: November 2026. This guide is general information, not individual advice.
