Economist: Heirs of companies should pay higher taxes

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2025 December 24 . 1:26 AM

1 min read

In this image we can see a family of five persons. Here we can see a man on the left side is... — In this image we can see a family of five persons. Here we can see a man on the left side is wearing a suit and a tie. Here we can see a woman on the right side. Here we can see three children. Here we can see the smile on their faces.

Economist: Heirs of companies should pay higher taxes - Economist: Heirs of companies should pay higher taxes

Monika Schnitzer, head of Germany’s Council of Economic Experts, has renewed calls for stricter inheritance taxes on family businesses. She claims the current system unfairly favours business assets over private wealth. Her comments come ahead of an expected court ruling on the issue next year.

Schnitzer first pushed for higher taxes on business heirs in 2023. She argued that private households face much heavier taxation on financial assets than heirs to company wealth. The problem, she says, is not the tax rate itself but the uneven treatment of different assets.

In large inheritances, heirs often receive more than just the business—luxury items like art, classic cars, or private jets also pass tax-free. Schnitzer believes the Federal Constitutional Court will strike down the current rules in 2025. She has repeatedly expressed confidence that the court will rule against the existing system. Her criticism centres on how business assets receive preferential treatment compared to private savings. While inheritance tax rates are not unusually low, the imbalance in how assets are assessed remains a key concern.

The Council of Economic Experts’ chair has made her position clear: inheritance tax rules need reform. A court decision next year could force changes to how business assets are taxed. If the ruling goes as Schnitzer predicts, heirs to family firms may soon face higher tax burdens.