Overview
- The SPD draft sets a €1 million lifetime personal exemption and a €5 million allowance for business transfers, with progressive taxation above those levels.
- Transfers of companies could be paid over up to 20 years, and the SPD proposes abolishing current business-asset relief rules.
- SPD deputy Wiebke Esdar argues most small and mid-sized firms would pay nothing under the €5 million threshold, citing KfW data showing typical SME values near €500,000.
- CDU figures and the DIHK reject the plan, warning it would burden many family firms; IW estimates the threshold would be relevant for roughly 55% of around 80,000 companies.
- The Constitutional Court is reviewing the legality of existing business relief with a decision expected in 2026, and the SPD signals any additional revenue could support education.