If property let for residential purposes is bequeathed or gifted, it is not subject to inheritance and gift tax at its full value, but only at 90%. Previously, the property had to be located in Germany or in another EU/EEA country.
In future, the valuation discount of 10% will also apply if the property is located in a third country and an exchange of information with this third country is ensured with regard to inheritance tax. The Federal Ministry of Finance will publish a list of countries that fulfil these requirements.
The regulation is to enter into force on the day after its promulgation.