International inheritance law

Autor

Abraam Kosmidis
Abraam Kosmidis – Attorney since 1992
(Real estate, commercial, corporate, M&A, company formation)

International inheritance law – Your counsel for cross-border estates

KPAG Kosmidis & Partner may advise and represent you in estate cases with a cross‑border element. In times of globalization and freedom of movement within the EU, the number of people residing outside their home state is increasing. With millions of EU citizens residing or owning assets abroad, questions of applicable law, jurisdiction, and tax arise frequently.

Our firm brings extensive experience in inheritance matters in Greece as well as in cross‑border estates (e.g., Germany–Greece). Common issues that may arise include: a) determining the applicable law in cases of dual nationality B) the testator’s ability to choose the law governing the succession C) situations involving real estate is located in Greece, Spain, or the United States. We, hereby, address the most common issues.

You may find further information in our publication “Internationales Erbrecht Griechenland” (C. H. Beck).

What constitutes a cross‑border element in an estate?
Which law applies to international successions?
How can you best avoid complications in cross‑border estates?
Inheriting assets abroad

What constitutes a cross‑border element in an estate?

An estate may be considered international when it involves a cross‑border element—i.e.:

A German national holds a primary residence, a vacation home, or other assets abroad.
The decedent’s last habitual residence was abroad.
A foreign decedent owns assets in Germany.
A foreign national resides and passes away in Germany.
The decedent holds dual nationality.
Spouses of different nationalities wish to make a joint will.

In all cases of such nature, the applicable inheritance law must be determined individually.

Which law applies to international successions?

Since 2015, EU Regulation No. 650/2012 on succession has simplified many aspects of cross‑border cases. The general rule is that the applicable law governing the succession, as a whole, is that of the state in which the decedent had their last habitual residence (Art. 21), unless the case is manifestly more closely connected to another state. If so, the law of that other state applies.

Under Art. 22, a testator may, by a disposition of property upon death (e.g., a will), choose the law of their nationality to govern the succession. The chosen law must be expressly designated in the will or clearly inferred from its terms.

The Regulation applies even when the designated law is that of a non‑EU country. Example: a German national who had their last habitual residence in the United States and did not stipulate a valid choice of law in their will, their will shall be governed by U.S. law—subject the considerations of Art. 21(2), such as a very brief stay in the U.S. while all assets and income are located in Germany, which could point to the application of German law.

Personal choice of law in earlier deaths; special cases

For deaths that occurred prior to 17 August 2015, the national provisions of private international law shall apply (e.g., Art. 25 EGBGB in Germany; Art. 28 Greek Civil Code). Greek law includes specific provisions regarding forced heirship and formalities related to wills (including the Hague Convention on the Conflicts of Laws relating to the Form of Testamentary Dispositions, 1961).

How to avoid complications in cross‑border estates

The most practical approach would be to to make a valid will in advance, in compliance with the law of the country intended to govern the succession. Matters to be considered with your counsel:

Aspects to be regulated by the will (statutory succession versus dispositions; forced shares considerations).
Formality requirements for a will under the law of the country designated to govern it.
Inheritance and donations tax; available allowances and timing (e.g., inter vivos transfers of real estate located abroad).

Inheriting assets abroad – key aspects

Applicable law: for deaths that occurred after 17 August 2015, the EU Regulation applies within the EU; habitual residence generally governs.
testamentary or statutory succession: verify whether a formally valid will exists; negative certificates from will registers may be required to proceed under intestate succession.
Documentation: identification documents, decedent’ s information, death certificate, certificate of inheritance. The European Certificate of Succession facilitates cross‑border cases and is valid for six months from the date of issue.
Deadlines: time limitations for acceptance or renunciation vary by country. In general, if inheritance of the estate is not renounced, it is deemed accepted.
Inheritance tax: the EU Regulation does not harmonize provisions on taxation. Double‑taxation treaties are in place between several countries (e.g., Denmark, France, Sweden, Greece, Switzerland, USA). Otherwise, the crediting of foreign taxes may be limited.

KPAG Kosmidis & Partner: experienced cross‑border counsel since 1992. We combine long-standing expertise, academic insight, and an interdisciplinary network to deliver effective solutions in international estate matters, with a particular focus on German–Greek cases.

(As of March 2023. All information provided without guarantee.)