Germany’s rules on inheritance, wealth and property tax form a complex framework that affects private individuals, families, and businesses with assets in Germany. This guide offers a clear overview of how German inheritance tax, the (currently suspended) wealth tax, and the reformed property tax work in practice and links you to detailed guides for each area.

German Inheritance Tax

In Germany, inheritance tax is levied on assets transferred upon death, while gift tax applies to gratuitous transfers made during a person’s lifetime. Both taxes are governed by the German Inheritance Tax and Gift Tax Act and are charged to the recipient, with tax rates and exemptions depending on the relationship between the deceased or donor and the beneficiary, as well as the value of the transfer.

When planning cross-border estates or relocating to Germany, understanding the scope of German inheritance tax, available allowances and double taxation issues is essential. For deeper information on tax classes, exemptions and typical planning strategies, see our German Inheritance Tax Guide .

German Wealth Tax

Under the German Wealth Tax Act, wealth tax was historically imposed on a taxpayer’s net assets, including businesses, real estate, securities, savings, and high-value personal property such as luxury items and works of art. The tax was designed as a periodical tax on wealth, calculated on the value of net assets as at a specific reporting date.

In 1995, the Federal Constitutional Court held that differences in the valuation of real estate and other assets for wealth tax purposes violated the constitutional principle of equality. As a result, German wealth tax has not been levied since 1997, although the Wealth Tax Act formally remains in force and wealth taxation is still a recurring topic in German political and fiscal debates. For a detailed look at the historical regime and current discussions, consult our German Wealth Tax Guide .

German Property Tax

Property tax in Germany is a recurring tax levied on real property, including land, buildings, and agricultural or forestry operations. As a rule, the property owner is liable for the tax, but if the property is rented out the owner can generally pass the property tax on to tenants via operating costs.

In 2018, the Federal Constitutional Court declared the existing valuation system for property tax unconstitutional, as similar properties were treated differently and the principle of equal treatment under the German Basic Law was violated. Germany is therefore implementing a comprehensive property tax reform: all properties must be revalued, and property tax based on these new values applies from 1 January 2025. For more detail on the new valuation rules, regional options and practical implications for property owners and investors, see our German Property Tax Guide .