Navigating German Inheritance Laws as a Thai Citizen: What You Need to Know

Jan 08, 2025By Dominik Lindner
Dominik Lindner

 
1. Introduction to German Inheritance Law
1.1 German inheritance law governs the transfer of assets and liabilities upon the death of an individual. It applies to all estates located within Germany, regardless of the nationality of the heirs.
1.2 For Thai citizens inheriting from Germany, understanding these laws is crucial to claim assets, manage liabilities, and comply with legal and tax obligations.

2. Statutory Inheritance vs. Will-Based Inheritance
2.1 If there is no will, the estate is distributed according to German statutory inheritance law. This law prioritizes family members based on their relationship to the deceased, such as spouses and children.
2.2 A will can override statutory inheritance rules, allowing the deceased to leave assets to non-family members, including Thai citizens.

3. Key Documents Required
3.1 Thai citizens must provide the following to claim an inheritance:

  • A Certificate of Inheritance (Erbschein) issued by the German probate court.
  • Proof of relationship to the deceased, such as a marriage certificate or birth certificate.
  • The deceased’s will, if available, translated into German and legalized.

3.2 Documents issued in Thailand must be translated and legalized to be accepted in Germany.

4. The Role of the Certificate of Inheritance (Erbschein)
4.1 The Erbschein is a critical document proving the heir’s legal right to the inheritance.
4.2 It is issued by the German Nachlassgericht (probate court) after verifying all submitted documents and evidence.
Inheritance Tax Obligations
5.1 German inheritance tax applies to the estate based on the heir’s relationship to the deceased and the value of the inheritance.
5.2 Tax-free allowances for heirs:

  • Spouses: €500,000
  • Children: €400,000
  • Non-family members, including unmarried Thai partners: €20,000

5.3 Tax rates range from 7% to 50%, with higher rates for distant or unrelated heirs.

6. Cross-Border Challenges
6.1 Thai citizens inheriting from Germany face unique challenges, including:
Navigating German legal processes from abroad.

  • Managing the translation and legalization of Thai documents.
  • Understanding tax obligations in both Germany and Thailand, including potential double taxation.
    6.2 Coordination with German authorities and professionals is essential to address these challenges effectively.
    7. Options for Handling Assets
    7.1 Inheriting Real Estate: Thai citizens can retain, sell, or rent inherited property in Germany.
    7.2 Bank Accounts and Investments: Accessing these requires the Erbschein and compliance with German banking regulations.
    7.3 Transferring Funds to Thailand: This involves navigating both German and Thai financial regulations and tax laws.

8. Legal and Cultural Considerations
8.1 Language barriers and unfamiliarity with German legal procedures can delay the inheritance process.
8.2 Cultural differences may affect communication with German authorities or other heirs, making professional mediation valuable.

9. How Thai-German Heritage Assistance Can Help
9.1 Thai-German Heritage Assistance specializes in supporting Thai citizens with German inheritance claims. Services include:
Document preparation and translation.
Coordination with German probate courts.
Tax guidance to minimize liabilities.
Asset management and transfer solutions.
9.2 Our expertise ensures Thai citizens can confidently navigate the complexities of German inheritance law.

10. Conclusion
10.1 Inheriting from Germany as a Thai citizen involves navigating a complex legal and administrative landscape.
10.2 With proper preparation, professional guidance, and a clear understanding of German laws, Thai heirs can secure their inheritance and fulfill all legal obligations efficiently.

This guide provides the essential steps and considerations for Thai citizens inheriting from Germany, empowering them to navigate the process with confidence.