Inheritance tax: Germany can be billions miss out

Each year are in Germany inherited assets to the value of EUR 200 to 300 billion or given away. According to a new study by DIW billions escape the taxman it – a radical reform of inheritance tax is therefore long overdue.

Ownership is very unequally distributed in Germany: according to conservative estimates, the richest 10 percent own nearly two-thirds of the net assets, the wealthiest percent approximately one third and the top 0.1 percent always or 16 percent. That means vice versa: 90 percent of citizens have only one-third of the net assets in Germany.

A factor increased steadily this imbalance: inheritances.

EUR 200 to 300 billion will be propagated every year according to a recent survey of the German Institute for economic research (DIW) in Germany as inheritance or as a preferred donation. How much the assets in Germany are amounts inherited and being – given away all these figures are controversial because there are no exact statistics. The DIW has therefore estimated the sum itself on the basis of the most reliable surveys (for example, by the German Federal Bank). According to own statements should the Institute so that “the future heritage volume significantly underestimate”.

Half of all inheritances is under 50,000 euros. The large chunk a few people are divided about it: so get only 0.08 percent of beneficiaries totals of more than five million euros – but accounts to this group for 14 percent of the total.