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Calls to Overhaul Germany’s Inheritance Tax Grow as Court Decision Looms

A looming court ruling alongside new figures is pushing Germany toward tighter rules on untaxed mega‑inheritances.

Overview

  • New government figures show roughly 460 transfers of at least €100 million in the past decade, with no tax due in more than half of those cases.
  • DIW tax expert Stefan Bach branded the current system a “Dummensteuer” and proposed a lifetime allowance of about €800,000 for children.
  • The SPD advocates a lifetime allowance model and greater contributions from very large estates, while Greens and the Left press to curb business‑asset carve‑outs.
  • The Union urges caution, with Jens Spahn open to reform talks if companies are protected, as the CSU promotes regionalization and the AfD rejects higher levies.
  • Record wealth handovers in 2024 totaled about €113.2 billion, yet revenues stayed modest at €9.9 billion overall, including €8.5 billion from inheritance tax, highlighting the gap between transfers and receipts.