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Merz Opposes SPD’s Proposed Changes to Inheritance Tax
German Chancellor Friedrich Merz (CDU) has firmly rejected the Social Democratic Party’s (SPD) plans to reform the inheritance tax. Merz warned that the proposals could unsettle the economy, a stance that has found broad support within the business community. The SPD’s plan aims to increase the taxation on large inheritances, particularly targeting wealthy heirs and aiming to introduce a new tax allowance of five million euros for business inheritances. However, Merz emphasized the risk of creating economic uncertainty through such reforms, opposing the coalition partner’s strategy as detrimental to economic stability [Source 1][Source 2][Source 4].
Implications for Expats and Foreign Workers in Germany
The debate over inheritance tax reform holds practical relevance for expatriates, international students, and foreign workers residing in Germany. For those owning assets or businesses in Germany, changes to the inheritance tax could affect how estates are passed on, potentially increasing tax burdens on heirs. The proposed SPD reforms suggest increased scrutiny and potentially higher taxation on large inheritances, which could impact wealth transfer planning among foreign nationals with significant assets in the country.
Expats should stay informed of any legislative developments and consider consulting financial or legal advisors to understand how these tax proposals might affect their inheritance rights or estate planning. Current deadlines and the final form of any reform remain uncertain as the dispute between coalition partners persists. Until then, existing regulations apply [Source 1][Source 4][Source 7].
