Hamburg's inheritance tax is bubbling: New reform threatens assets!

Hamburg's inheritance tax is bubbling: New reform threatens assets!

There is currently a remarkable trend in Hamburg: income from inheritance and gift taxes is increasing, despite a decline in inheritance cases. In 2023, around 509 million euros were already received from around 39,000 inheritance cases, and a further increase can even be seen for 2024. A total of 532 million euros flowed into the city's coffers in around 37,500 inheritance cases. Especially in the first half of 2024, in which around 19,500 cases have already been recorded, a good 323 million euros were generated, reports the Daily newspaper.

But what is behind these numbers? The red-green Senate is planning a reform of the existing exemption regulations, which would particularly like to change the complete tax exemption for highly wealthy heirs, especially of business and real estate assets. This measure could help reduce the unequal distribution of wealth and achieve a fairer contribution to the tax burden of people with large inheritances. The left-wing budget expert David Stoop has already sharply criticized this development.

Relief regulations under scrutiny

There are currently various exemption regulations that offer tax relief for specific types of assets. The so-called standard exemption makes it possible to exclude up to 85% of the benefited assets from taxation, while 15% is subject to tax. Small and medium-sized companies in particular benefit from these regulations, explains Freber.

The option exemption, which enables complete tax exemption, is usually an option for larger companies. However, these regulations only apply up to a threshold of 26 million euros. There are already discussions about whether these thresholds should be adjusted to achieve the desired redistribution.

Company succession: A challenge

Inheritance tax not only impacts private individuals, but also corporate successions. Factors such as the degree of relationship, the value of the assets and possible tax exemptions play a role here. Business assets in particular can be favored if certain regulations are adhered to. Loud Horse nail For example, a business must be continued for at least five years after the transfer in order to benefit from the tax relief.

But the regulations are complex. For example, heirs who continue to run the company must adhere to certain wage amounts, otherwise there is a risk of tax disadvantages. This also affects the maintenance of jobs, which at the same time ensures the preservation of jobs in the region.

This development in Hamburg shows how inheritance tax is not only a financial issue, but also a social and economic issue that has many facets. The coming months will show which specific reforms will be implemented and how they will impact citizens and entrepreneurs.