The European Commission has asked Germany to bring its inheritance tax (IHT) rules on special maintenance allowances in line with EU law.

German legislation currently allows German tax authorities to grant a special maintenance allowance to surviving spouses or registered partners of a deceased individual only if either one or both of them are tax residents in Germany. The allowance is not available to surviving spouses or registered partners when they inherit an estate or an investment that is located in Germany but the deceased and the heir are tax resident in another Member State.

The Commission said it c...