Case C-394/20: Judgment of the Court (Fifth Chamber) of 21 December 2021 (request for a preliminary ruling from the Finanzgericht Düsseldorf — Germany) — XY v Finanzamt V (Reference for a preliminary ruling — Free movement of capital — Articles 63 and 65 TFEU — National legislation on inheritance tax — Immovable property situated in a Member State — Limited tax liability — Different treatment of residents and non-residents — Right to an allowance on the taxable value — Proportionate reduction in the case of limited tax liability — Liabilities under reserved portions — No deduction in the case of limited tax liability)
Date: 2021-12-21
Institutions: Court of Justice
Subjects: acquisition of property, capital transfer tax, debt, equal treatment, free movement of capital, inheritance, real property, residence, tax relief








C_2022084EN.01001502.xml










21.2.2022   


EN


Official Journal of the European Union


C 84/15






Judgment of the Court (Fifth Chamber) of 21 December 2021 (request for a preliminary ruling from the Finanzgericht Düsseldorf — Germany) — XY v Finanzamt V
(Case C-394/20) (1)

(Reference for a preliminary ruling - Free movement of capital - Articles 63 and 65 TFEU - National legislation on inheritance tax - Immovable property situated in a Member State - Limited tax liability - Different treatment of residents and non-residents - Right to an allowance on the taxable value - Proportionate reduction in the case of limited tax liability - Liabilities under reserved portions - No deduction in the case of limited tax liability)
(2022/C 84/17)
Language of the case: German

Referring court

Finanzgericht Düsseldorf

Parties to the main proceedings


Applicant: XY

Defendant: Finanzamt V

Operative part of the judgment







1.


Articles 63 and 65 TFEU must be interpreted as not precluding legislation of a Member State on the calculation of inheritance tax which provides that, in the event of acquisition of immovable property situated on national territory, where, at the date of death, neither the deceased nor the heir had their place of residence or habitual residence in that Member State, the allowance on the taxable value is to be reduced, in relation to the allowance applied where at least one of them, on that same date, had his or her place of residence or habitual residence in that Member State, by an amount corresponding to the share that represents the value of the estate that is not subject to tax in that same Member State in relation to the value of the whole estate;










2.


Articles 63 and 65 TFEU must be interpreted as precluding legislation of a Member State on the calculation of inheritance tax which provides that, in the event of acquisition of immovable property situated on national territory, where, at the date of death, neither the deceased nor the heir had their place of residence or their habitual residence in that Member State, the liabilities under the reserved portions are not deductible, as debts under the succession, from the value of the inheritance, although those liabilities may be deducted in full if at least one of them, on that date, had his or her place of residence or habitual residence in that Member State.






(1)  OJ C 378, 9.11.2020.