Turkish Inheritance Tax: The Double Taxation Trap

Legal notice: This article addresses Turkish law exclusively. For the German tax side we work with independent tax advisors; Doğru Kanzlei advises on Turkish law under § 207 BRAO and does not advise on German domestic law.

Important: The German tax office does not credit Turkish tax paid on its own initiative. Without a timely claim and complete documentation, you remain liable for the full German tax on top of the Turkish tax already paid.

Worked Example 1: A Mixed Estate with Real Estate and a Bank Account

Mr. K., a Turkish national resident in Mannheim, passes away. He leaves an apartment in Ankara (market value EUR 200,000) and a bank account in Germany (EUR 100,000). His heir is his daughter, who lives in Germany.

Turkish side: The Ankara apartment is subject to Turkish inheritance tax under the location principle. Because the daughter is a Turkish citizen, the nationality principle also applies - the German bank account is assessed in Turkey too. After the exemption for descendants (2,907,136 TL) is deducted, the remainder is taxed across the five progressive bands (1-10%).

German side: Because both Mr. K. and his daughter were German "residents" for tax purposes (§ 2 ErbStG), the entire estate - apartment plus account - is subject to German inheritance tax. The personal exemption for children (EUR 400,000) is deducted first; the remainder is taxed under tax class I.

Result without planning: The Ankara apartment is genuinely taxed in both countries. The German tax attributable to the apartment can be reduced under § 21 ErbStG by the Turkish tax actually paid and documented - capped at the proportion of German tax attributable to that specific asset. The German bank account, by contrast, is typically not taxed a second time in any material way in Turkey, as long as it is already correctly declared in Germany.

Worked Example 2: A German National with No Turkish Background Inherits Only Turkish Property

A second, often-overlooked scenario: Ms. S., a German citizen with no Turkish family connection, is named sole heir by will to a holiday home in Bodrum (market value EUR 150,000). The deceased was a Turkish acquaintance with no assets in Germany.

Turkish side: The location principle applies regardless of the heir's nationality - Turkish inheritance tax is owed even though Ms. S. has no other connection to Turkey. Since she is not a descendant or spouse, a lower exemption and a different tax bracket generally apply than for close relatives - this should be checked case by case.

German side: Since Ms. S. lives in Germany, she is subject to unlimited tax liability there too, including for this foreign asset. Her personal exemption is significantly lower than for children or spouses, since she is unrelated to the deceased (tax class III).

The takeaway: For distant or unrelated heirs with Turkish assets in particular, the effective tax burden on both sides tends to be noticeably higher than for close relatives - which is exactly where early planning helps the most.

How Far Does the § 21 ErbStG Credit Actually Go?

The credit is not a blanket fix. Three limits matter in practice:

1. Only "foreign assets" qualify. Only the Turkish tax attributable to assets that count as foreign-situated under § 21 ErbStG is creditable - for a Turkish property this is usually straightforward to document; other asset types should be reviewed case by case with a tax advisor.

2. The credit is capped. It applies only up to the amount of German tax attributable to that specific foreign asset - not the total German tax bill. If the Turkish tax exceeds that share, the excess is typically not refunded.

3. The credit must be claimed and evidenced. This usually requires the Turkish tax assessment, proof of payment, and a certified German translation - apostilled. Without these, the German tax office typically rejects the claim or delays it significantly.

5 Strategies to Reduce Double Taxation

1. Plan the estate early. Anyone with assets in both countries should plan proactively - for example through lifetime gifts that use both countries' exemptions, rather than letting everything converge at the moment of death.

2. Optimize the valuation, don't manipulate it. The Turkish declared value (Beyan Değeri) is often below true market value. An accurate but carefully documented valuation can lower the Turkish tax bill without legal risk.

3. Prepare the credit claim from day one. Keep every original Turkish tax assessment and payment receipt. Get them apostilled and translated promptly - not only once the German tax office asks for them.

4. Track both countries' deadlines in parallel. The Turkish filing deadline (4-8 months, see our inheritance guide) runs independently of the German one. Missing either deadline risks late-filing penalties in both systems at once.

5. Coordinate the lawyer and the tax advisor from the start. The legal side (Turkish probate certificate, land registry transfer) and the tax side (German inheritance tax return, § 21 claim) need to work together - handled separately, gaps and missed deadlines are common.

Inheritance Tax Coordination - with Doğru Kanzlei

Doğru Kanzlei holds dual bar membership with the Ankara Bar Association (registration no. 47068) and the Karlsruhe Bar Association (§ 207 BRAO). We coordinate the Turkish side of your case directly via UYAP - probate certificate, Turkish tax filing, tax clearance certificate, land registry transfer - and work closely with independent, specialized tax advisors on the German side so the § 21 claim is filed correctly and on time.

Want an assessment specific to your situation? Tell us briefly which assets sit in which country, and we will work out together where the double taxation actually bites - and what can still be reduced.

Request Your Inheritance Tax Assessment via WhatsApp

Also Available in Other Languages

This guide is also available in Turkish:

Türkiye-Almanya Miras Vergisinde Çifte Vergilendirme

And in German for German-speaking family members or advisers:

Erbschaftsteuer Türkei-Deutschland: Doppelbesteuerung vermeiden

The full process for a Turkish inheritance - probate certificate, deadlines, forced heirship claims, fraudulent transfers - is covered in our complete inheritance guide.