GERMANY Trends and Developments Contributed by: Christian von Oertzen and Philipp Windeknecht, Flick Gocke Schaumburg
Inheritability of Social Media Accounts The digital estate is an interplay of inheritance law, fundamental rights, privacy and business practices of service providers. In Germany, there are only a few judicial verdicts in relation to digital estates, so many legal issues are still unclear and somewhat contro - versial. In 2018, the German Supreme Court decided that the heirs are entitled to access the Facebook account of the deceased. The account would also be transferred to the heirs by way of universal suc - cession. The court stated that neither the secrecy of telecommunications nor the post-mortem personal right to privacy stands in the way of inheritance. In 2025, the Higher Regional Court of Oldenburg ruled that the contractual user relationship, with its rights and obligations in relation to social media accounts (in this case, Instagram), is transferred to the heirs by way of universal succession. The heirs may continue to actively use the account. Stability of Tax Laws The German transfer tax regime is currently in a rather stable phase. Germany elected a new federal parlia - ment ( Bundestag ) in 2025, with a government led by the Christian Democratic Union. So far, no major changes in transfer taxes have been announced. Like many other countries, Germany is still facing the consequences of the war in Ukraine; hence, changes might be expected. Moreover, it remains unclear if the gift and inheritance tax exemptions for business assets are constitutional. It can therefore be expected that within the next two years, the German Federal Constitutional Court will render a decision in this regard.
ruled that this provision violates the free movement of capital. In 2024, the German legislator amended the provision. A pro rata deduction is now possible. Tax Relief of 10% for Residential Properties in Non-EU/EEA Countries In principle, a 10% tax relief for gifts and inheritances was available for personally held real estate that was let for residential purposes and that was located in Germany, the EU or the EEA. In 2023, the CJEU ruled that this provision violated the free movement of capi - tal because properties in countries other than the EU/ EEA were excluded from this relief. Therefore, since 31 December 2024, the relief has also been applied to properties in non-EU/EEA countries that exchange inheritance and gift tax information with Germany. Double Taxation Convention Sweden The double taxation convention with Sweden came into effect in 1992. However, Sweden abolished its estate and gift tax in 2005. In 2023, the German Fed - eral Fiscal Court ruled that a donor or decedent could not be a resident of Sweden within the meaning of the Double Taxation Convention because the country of residence was determined by unlimited tax liabil - ity. Therefore, the convention did not offer protection even if the donor had their centre of life in Sweden and the donee was only resident in Sweden for tax purposes. The donor’s residence in Germany was suf - ficient to establish German unlimited tax liability with no treaty protection. Consequently, the provisions on estate and gift tax were removed from the convention in October 2024. Extended Unlimited Inheritance and Gift Tax Liability Does Not Violate the Constitution or European Law The extended unlimited inheritance and gift tax liabil - ity applies if the deceased/donor or the heir/legatee/ donee is a German citizen who left Germany for not more than five years (ten years in the case of Germa - ny–USA). In 2022, the Federal Fiscal Court ruled that the extended unlimited inheritance and gift tax liability does not violate the principle of equality, the freedom to leave the country or the free movement of capital because the nationality of the parties involved estab - lishes a sufficient link to Germany for tax purposes.
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