🇩🇪 Valuing your Indian property from Germany
German residents are taxed on worldwide inheritances and gifts, and there is no estate tax treaty with India.
Where Germany rules reach your Indian property
Inheritance and gift tax
If either side is German tax resident, Indian property can be pulled into the German taxable estate at market value.
Zugewinngemeinschaft
The default marital regime equalises the growth in each spouse's net worth during the marriage. That means valuing the Indian property at the start and at the end.
Double taxation
With no estate tax treaty in place, careful documentation of Indian tax paid is what supports any credit claim.
Worldwide income, and the Indian flat is in it
German residents are taxed on worldwide income, so rent from an Indian property belongs in the German return as well as the Indian one. The double taxation agreement between the two countries governs which side taxes what and how relief is given, but the disclosure obligation does not disappear.
Inheritance and gift tax
Germany levies inheritance and gift tax by reference to the residence of the parties rather than only the location of the asset. Where the deceased or the beneficiary is German resident, foreign property including Indian real estate can fall within scope, with allowances varying by relationship.
The figure the German authority works from is the value at the date of death or gift, not today. That is a retrospective valuation converted to euro at the rate applying on that date, and it is a different number from the Indian cost base.
The mismatch, stated plainly
Your German computation may start from a date of death value. Your Indian computation starts from the original owner's purchase price or the 1 April 2001 value. Both are correct in their own system. Most families in this position need two valuations, at two dates.
Selling from Germany
Indian tax is deducted at source on the sale value unless a lower deduction certificate is obtained in advance. Proceeds leave India through your non resident ordinary account under the annual limit, with certification from a chartered accountant.
Format
Reports go out in rupees with a euro conversion stating the rate, its source and the date it applies to. Where your Steuerberater needs a specific date, tell us at the outset.
Clients we look after in Germany
WhatsApp is easiest for everyone, and it works from any country without a local number. Send the property details and you get the fee and the timeline back, usually within six hours.
The reports Germany clients ask for most
Capital Gains and FMV 2001
The report that fixes your cost base before you sell, so you are taxed on the real gain and not on the whole sale price.
Read more → Saves the most moneyLower TDS Certificate, Form 13
Support pack for the Section 197 application, so the buyer deducts tax on your actual gain instead of the full sale value.
Read more →Inheritance and Partition
One neutral number that every heir can accept, whether you are selling, dividing or buying a sibling out.
Read more →Valuations for NRIs in other countries
Living in Germany? Let us tell you which report you actually need.
Tell us the situation in your own words. Two minutes on WhatsApp usually settles which report it is, what date it has to be as at, and which papers to dig out first.