Germany taxes inheritances of business assets quite heavily compared to other countries. Germany has the highest burden when bequeathing assets to a spouse and the third highest when the heir is a child. This is the conclusion of an international comparison carried out by the economic research institute ZEW – Leibniz Centre for European Economic Research in Mannheim on behalf of the Foundation for Family Businesses.
Of the 33 countries analysed, 14 do not levy an inheritance tax at all. A further 12 countries exempt spouses and, where applicable, children from the inheritance tax. A total of 11 countries offer preferential treatment when heirs inherit companies in general or family businesses in particular. In 17 of the 19 countries with an inheritance tax, payment facilities (such as deferral or payment by instalments) are granted.