Donation from Austrians to Germans
May 21, 2011 | 40,00 EUR | answered by Oliver Burchardt
Do I (a German residing in Germany) have to pay gift tax in Germany if my aunt, who is an Austrian and lives in Austria, gifts me money from a real estate sale and I use this money to buy an apartment in Austria?
Dear questioner,
Thank you for your inquiry, which I am happy to answer as part of an initial consultation.
For gift tax, the tax liability is based on the place of residence of the donor or the recipient, § 2 paragraph 1 no. 1 ErbStG.
Therefore, the gift is subject to gift tax, regardless of what you do with the gifted money after the gift.
Even a direct gift of the apartment by your aunt triggers gift tax. Depending on what you intend to do with the apartment, the gift of the apartment could be advantageous from a tax planning perspective.
If you intend to rent out the apartment, it is to be valued at only 90% of its value, § 13c paragraph 1 ErbStG, while a money gift is to be valued at its nominal value. Assuming that the value of the apartment in your case corresponds to the value of the money gift, a reduction in the tax burden is possible.
I hope I have been able to assist you with your query.
Best regards,
Oliver Burchardt
Tax advisor
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