Yvon Welte v Finanzamt Velbert [2013] EUECJ C-181/12 (17 October 2013)

Yvon Welte v Finanzamt Velbert [2013] EUECJ C-181/12 (17 October 2013)

Legislation that provides a lower tax-free allowance for inheritance of immovable property by non-residents than for residents constitutes a restriction on the free movement of capital under Article 56 EC, and is not justified by Article 58 EC or by overriding reasons in the public interest.

Citation
[2013] EUECJ C-181/12
Parties
Applicant: Mr Welte; Respondent: Finanzamt Velbert
Jurisdiction
European Union
Judgment Date
12 June 2013
Procedural Posture
Preliminary Ruling / Judgment
Outcome
Articles 56 EC and 58 EC preclude national legislation granting a lower tax-free allowance to non-resident heirs than to resident heirs for inheritance of immovable property.
Legal Topics
Inheritance Tax, Free Movement of Capital, Discrimination Based on Residence
European Union Law Tax Law Inheritance Tax Free Movement of Capital Discrimination Based on Residence

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 20 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Mr Welte

Applicant

Finanzamt Velbert

Respondent

Procedural Posture

Preliminary Ruling / Judgment

Legal Issues

  1. 1 Whether Articles 56 EC and 58 EC preclude national legislation that grants a lower tax-free allowance to non-resident heirs of immovable property than to resident heirs

Ratio Decidendi

Legislation that provides a lower tax-free allowance for inheritance of immovable property by non-residents than for residents constitutes a restriction on the free movement of capital under Article 56 EC, and is not justified by Article 58 EC or by overriding reasons in the public interest.

Court Disposition

Articles 56 EC and 58 EC preclude national legislation granting a lower tax-free allowance to non-resident heirs than to resident heirs for inheritance of immovable property.

Orders

  • National legislation must not discriminate against non-resident heirs in the calculation of inheritance tax allowances.