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Record Increase in Germany’s Inheritance and Gift Tax Revenues
Germany’s state revenues from inheritance and gift taxes surged by more than 60 percent in 2025 compared to the previous year, reaching an unprecedented total. According to the Federal Statistical Office (Destatis), authorities recorded 21.4 billion euros in tax revenues from these sources, marking the highest level ever measured. This increase largely stems from transfers of large fortunes, with inheritance tax revenues alone rising by 57.1 percent to 13.3 billion euros. Meanwhile, gift tax revenues grew even more sharply, climbing 67.3 percent to 8.1 billion euros in 2025 [Source 1].
Context and Implications of the 2025 Inheritance Tax Increase
The significant rise in revenues reflects greater taxable asset transfers, particularly among high-value estates. For comparison, the previous peak for inheritance tax revenue was 9.0 billion euros in 2021. Despite this surge, sizeable tax exemptions and reliefs remain in place, especially for business assets, which limit the overall tax take from large inheritances. A 2023 report highlighted that the state waived around 8 billion euros in potential revenue due to such exemptions favoring company heirs. In cases of high-value estates, substantial tax bills were often reduced or erased due to these reliefs [Source 7].
In 2024, the officially assessed inheritance and gift tax revenue was 13.3 billion euros, up 12.3 percent from 2023. Out of this, 8.5 billion euros came from inheritance tax—a 9.5 percent increase—and 4.8 billion euros from gift tax [Source 6]. Experts suggest that removing certain tax privileges could further boost state revenues by around 7.8 billion euros in 2026, underscoring the impact of current exemptions [Source 4].
Impact on Expats and Foreign Residents in Germany
Expats, international students, and foreign workers residing in Germany should be aware that inheritance and gift taxes have become a more significant source of state revenue, especially after the large increases in 2025. This trend could affect anyone inheriting or receiving significant gifts from relatives or acquaintances within Germany. Knowing the current tax rates, exemptions, and filing obligations is crucial, since taxes on inheritance can entail substantial payments depending on the value and type of assets transferred.
Foreign residents should consider consulting tax professionals to understand their rights and obligations, particularly when handling cross-border estate matters or international gifts. Deadlines for declaring assets and paying inheritance or gift taxes remain important, and failure to comply can result in penalties. Awareness of the ongoing tax policy landscape, including possible future changes to reliefs and exemptions, may help expats plan estate or gifting arrangements more efficiently. More information is available from local tax offices or official German government resources [Source 1].
For further reading, see the original article in German: https://www.tagesschau.de/wirtschaft/finanzen/erbschaftssteuer-staatseinnahmen-100.html [Source 1].
