The tax relief that exempts significant amounts of corporate wealth from inheritance and gift tax largely benefits minors, according to the German federal ministry of finance’s response to a question posed by the Bundestag’s left-wing faction, a story reported by “Der Spiegel”.
In 2024, tax‑favoured assets totaling almost €11.1 billion were transferred. Of this amount, €4.7 billion went to recipients aged 17 or younger-43 % of the total. The average tax rate applied was only 4.7 %. When the beneficiaries were foundations, the effective rate dropped to a mere 0.1 %.
Left party politician and former Brandenburg finance minister Christian Görke used the inquiry to highlight what he described as the inequity of the current inheritance tax system. He also criticised the federal finance ministry for largely leaving questions about tax‑saving structures and their assessment unanswered. “The SPD has made public calls for a fairer inheritance tax almost daily” Görke said. “Yet when one reads the ministry’s reply to my question, it is clear that the finance minister and the SPD party leader do not support the party’s stance”.