A leading expert in inheritance law has called for a comprehensive overhaul of Germany’s inheritance tax system. Anton Steiner, president of the German Forum for Inheritance Law, voiced his concerns in an interview with the “Neue Osnabrücker Zeitung” highlighting the system’s complexity and potential inequities.
Steiner cited the sheer number of exemptions within the current legislation as a primary issue. He characterized the law as “tattered” and in need of fundamental reform, noting that the numerous exceptions lead to scenarios where heirs inheriting a few properties face significant tax burdens, while those inheriting multiple properties might pay nothing at all.
Recent government data from the Federal Statistical Office indicates that inheritance tax revenue is projected to reach a record €13.3 billion in 2024. Steiner attributed this increase to a failure to adjust the tax-free allowances in line with rising asset values. He argued that the escalating value of real estate and property is effectively creating an automatic tax increase, a situation he described as a “secret tax increase.
The criticisms levied by Bavarian Minister-President Markus Söder regarding comparatively high inheritance taxes on real estate in Bavaria are deemed justified by Steiner. He pointed out the significant disparity based on property location, with heirs in regions like near Munich, where property prices are considerably higher, facing disproportionately burdensome tax liabilities compared to those inheriting property in more rural areas.
Söder previously proposed regionalizing inheritance tax rates to address this issue. Steiner acknowledged that the current nationwide, uniform tax-free allowances exacerbate these regional differences, creating significant pressure on heirs to sell properties, particularly smaller homes, to meet their tax obligations.
