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The German-Canadian
inheritance case

Der deutsch-kanadische Erbfall

If you have questions about inheritance tax / capital gain tax in Canada
and want to avoid unnecessary taxes, call us directly.

Wenn Sie mit kanadischem Bezug Fragen zur
Erbschaftsteuer /Kapitalertragssteuer haben und
unnötige Steuern vermeiden wollen, rufen Sie direkt an.

German-Canadian inheritance cases are complex and require sound tax advice to ensure that no tax pitfalls are overlooked. Here are the key aspects and services we offer in this context:

Which cases are these?

Heirs in Germany, testators in the Canada

Unlimited inheritance tax liability in Germany:
The entire inheritance is subject to German inheritance tax.

Testator in the Canada, heirs in Germany

Unlimited inheritance tax liability in Germany:
Here too, the entire inheritance is subject to German inheritance tax.

Testator and/or heirs in the USA,
Inheritance in whole or in part in Germany

Limited inheritance tax liability in Germany:
Only certain assets in Germany are subject to inheritance tax, such as domestic real estate, business assets and shares in corporations.

Our services

We provide you with comprehensive advice and represent you before the tax authorities

  1. Preparation of the inheritance tax return
  2. Tax-favorable valuation of real estate or business assets in the inheritance
  3. Avoidance or reduction of double taxation

Special features of German-Canadian inheritance cases

  1. No double taxation treaty between Germany and Canada in inheritance matters
  2. Transfer of assets in Canada is regarded as a deemed sale and can trigger Canadian income tax (capital gains tax)
  3. According to prevailing opinion, this tax is not creditable against German inheritance tax, but is deductible as an estate liability
  4. Legal doubts about this regulation have been expressed by the Cologne Fiscal Court and the European Court of Justice will decide

Advice on Canadian trusts,
e.g. “Alter Ego Trust”

  1. Taxation of the transfer of assets to a Canadian trust
  2. Taxation of distributions to “intermediate beneficiaries” during the existence of a Canadian trust
  3. Avoiding German taxation by moving away from non-transparent trusts
  4. Taxation of the acquisition upon termination of a Canadian trust

Holistic advice

  1. Advice on inheritances and gifts related to Canada
  2. Advice on income tax and German foreign tax law
  3. Application of the German-Canadian double taxation agreement in income tax matters
  4. Advice on possible relocation from Germany to Canada
  5. Advice on tax exemptions for pensions, annuities and similar income (RRIF – Registered Retirement Income Fund and TFSA – Tax-free saving account)

We also advise you via ZOOM

Contact and advice

We also offer our consulting services via Zoom,
to support you flexibly and from any location.

Make an appointment today

Let us provide you with comprehensive advice,
so that you are optimally protected in all tax matters
and avoid any unpleasant surprises.
We look forward to supporting you!

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+49 421 566 420 0

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