The exclusion of the valuation discount for third-country properties rented out for residential purposes violates the free movement of capital

Can Germany exclude residential properties in third countries from the so-called valuation discount without further ado? No - the European Court of Justice recently ruled, referring to the free movement of capital. The ruling could provide an opportunity to take a closer look at other potential discriminations in inheritance and gift tax law, says POELLATH professional Christian Hesse.