13 January 2026 - "The proposals submitted by the SPD for inheritance tax reform would lead to a significantly higher burden on the transfer of business assets. Many owner-managed and family-run businesses in Germany would face additional taxation – poison for Germany as a location for investment. The proposed exemption threshold of 5 million euros for companies would be disproportionately low, leading in most cases to substantial tax payments. In practice, the exemption threshold would be quickly reached when commercial properties, factory buildings, manufacturing equipment, warehouses, vehicle fleets etc., are passed on to the next generation. The proposed measures demonstrate very little understanding of the structure of medium-sized businesses and the corporate environment in Germany. A decade ago, the Federal Constitutional Court justified the exemption for operating assets in recognition of the economic significance of businesses in Germany. It is also incorrect that large business assets systematically pay fewer inheritance and gift taxes under the current regulation than small businesses. Furthermore, the proposed deferral arrangements offer little assistance to the next generation of entrepreneurs, as tax debts repaid over several years significantly increase the financing costs for investments. In practice, the proposals have been met with serious concern. Given these proposals, large sections of the business community currently feel that parts of the Federal Government still do not understand the challenging situation faced by many medium-sized businesses in Germany."