How long do you have to pay inheritance tax?
September 7, 2022 | 50,00 EUR | answered by Alwin Widmann
Dear Tax Advisor,
I recently inherited an estate and am unsure about how long I have to pay the inheritance tax. My father passed away a few months ago and left me his house. Since I do not have sufficient liquid assets to pay the tax immediately, I am concerned that I may fall behind.
The current situation is that I have already officially accepted the inheritance and the tax office has informed me about the due inheritance tax. However, since I am not sure about the time frame I have to pay the tax, I am uncertain and would like to learn more about it.
My concerns revolve around the possibility of facing penalty interest or other consequences if I am unable to pay the tax on time. Therefore, it is very important for me to know what deadlines and options are available to me to pay the inheritance tax on time.
Could you please explain to me how long I have to pay the inheritance tax and if there are installment payments or other solutions that could help me pay the tax on time?
Thank you in advance for your assistance.
Sincerely,
Martina Born
Dear Mrs. Born,
Thank you for your question regarding inheritance tax and the associated payment deadline. I can understand your concerns about possible penalty interest or consequences, so it is important that you inform yourself about the deadlines and payment options early on.
In Germany, heirs generally have a three-month deadline to pay the inheritance tax after being informed of the tax debt. This deadline starts from the time of accepting the inheritance or when the tax office officially establishes the inheritance. If you are unable to pay the tax within this deadline, penalty interest may indeed apply.
If you are unable to settle the inheritance tax within the three months, there is the option of deferral or installment payment. You will need to submit an application to the competent tax office and disclose your financial situation. The tax office will then assess whether deferral or installment payment is possible and set appropriate conditions.
It is important that you contact the tax office early on and explain your situation to avoid possible consequences. Early communication and cooperation with the tax office can help you find a suitable solution.
I hope this information has been helpful to you. If you have any further questions, please feel free to contact me.
Kind regards,
Alwin Widmann
Tax advisor
