15/03/2011 (Agence Europe) - Infringement, Germany. On Monday 14 March, the European Commission sent a reasoned opinion to Germany requesting it to amend its inheritance tax and gift tax legislation, which discriminates against residents of other EU member states and breaches EU law on the free movement of capital by dissuading investors from investing in real estate in Germany. Under German tax law, a tax exemption on inheritance of up to €500,000 is granted to German residents (depending on the degree of kinship), whereas this exemption is only €2,000 if both the testator and the heir are not resident in Germany. In the absence of a satisfactory response within two months, the Commission may refer Germany to the EU's Court of Justice. (F.G./transl.fl)