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SPD Sets Bundestag Rollout for Inheritance Tax Overhaul With €1 Million Lifetime Allowance

The proposal targets very large estates and anticipates a court ruling by adding a business succession allowance and long tax deferrals to protect family firms.

Overview

  • SPD leaders say the party will present its inheritance-tax concept to the Bundestag on Tuesday after details were reported by ARD.
  • Core elements include a lifetime tax-free allowance of about €1 million per heir (roughly €900,000 from family and €100,000 from others) and the end of recurring ten‑year exemptions.
  • A self‑occupied home would remain tax‑free if the heirs continue living in it, according to the reported concept.
  • For company transfers, the plan adds a separate €5 million allowance and allows tax payments above that threshold to be stretched over up to 20 years, with final rates on large inheritances not yet specified.
  • The SPD projects additional revenues in the low single‑digit billions for education, while CDU/CSU figures warn of harm to family SMEs and economists are split as a 2026 Constitutional Court ruling on current business-asset privileges looms.