German tax authorities collected €133 billion in inheritance and gift tax in 2024, representing a 123 percent increase and a new record high compared to the previous year, according to data released Wednesday by the Federal Statistical Office (Destatis)
Inheritance tax accounted for €85 billion of the total, a 95 percent increase year-on-year While inheritance tax peaked at €90 billion in 2021, it declined in subsequent years before rising again in 2024
Gift tax revenue reached a record €48 billion, an increase of 178 percent compared to 2023 This represents a continuous rise since 2019, with a more than doubling of revenue since 2021
Total assets transferred through inheritance and gifts subject to taxation amounted to €1132 billion in 2024 However, the taxable value of these transfers decreased by 68 percent compared to the prior year’s peak
The lower overall valuation is partially attributable to a decline in transfers of business assets, which fell by 279 percent to €215 billion Notably, transfers of businesses valued at over €26 million decreased sharply, dropping 497 percent to €86 billion Taxable transfers of shares in capital companies also fell by 287 percent to €74 billion
Conversely, transfers of real estate (developed and undeveloped land) increased by 17 percent to €464 billion, while other assets (such as bank balances, securities and shares) rose by 18 percent to €378 billion Transfers of agricultural and forestry assets also increased, rising by 67 percent to €16 billion
After accounting for liabilities and other factors, the taxable asset base totaled €1132 billion
Taxable inheritances and legacies increased by 48 percent to €641 billion, driven by rises in other assets (+31 percent to €331 billion), real estate (+40 percent to €274 billion) and agricultural/forestry assets (+70 percent to €06 billion) Taxable transfers of inherited business assets decreased slightly, down 30 percent to €48 billion, with transfers of businesses valued at over €26 million declining to €12 billion (-139 percent)
Gifted assets, however, decreased by 186 percent to €491 billion Significant declines were observed in gifted shares in capital companies (-341 percent to €55 billion) and gifted business assets (-329 percent to €167 billion), with gifted businesses valued at over €26 million almost halving to €74 billion (-530 percent)
Gifts of real estate were down 14 percent to €19 billion and other gifted assets decreased by 66 percent to €66 billion The only increase in gifted assets was within agricultural and forestry assets, which rose 65 percent to €10 billion