Business assets can be transferred to other persons in Germany without inheritance and gift tax – either by way of gift or by way of inheritance. However, the tax exemption for business assets usually only applies if the company does not contain any land leased to third parties. Excluded from this regulation, however, are the so-called housing companies. As defined in § 13b (4) sentence 1 no. 1 letter d ErbStG, they are always present when the rental activity has left the scope of a pure asset management.
If there is therefore an economic business, the business is a tax-free transferable housing company.
First principle: tax exemption for business assets
Inheritances and gifts are subject to taxation in Germany with the common value of the transferred assets. This principle also applies to operating assets, such as value
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.