Germany Wealth & Property Tax
Detailed wealth & property tax rates and rules for Germany in 2026.
Wealth Tax
Germany suspended its wealth tax (Vermögensteuer) in 1997. While the legal framework technically still exists, it has not been enforced since then and there are currently no plans to reintroduce it.
Wealth Tax Rate
0%
Inheritance / Estate Tax
Germany levies an inheritance and gift tax (Erbschaft- und Schenkungsteuer) with rates ranging from 7% to 50%, depending on the value of the inheritance and the relationship between the deceased and the heir. Tax Class I (close relatives such as spouses and children) benefits from generous exemptions and lower rates of 7% to 30%. Tax Class II (other relatives) faces rates of 15% to 43%. Tax Class III (unrelated persons) is subject to rates of 30% to 50%. Exemptions range from €20,000 to €500,000 depending on the relationship.
Top Rate
30%
Property Tax
Real estate transfer tax (Grunderwerbsteuer) ranges from 3.5% to 6.5% of the purchase price, depending on the federal state. Annual property tax (Grundsteuer) is levied by municipalities based on assessed property values and local multipliers. Germany undertook a major property tax reform effective from 2025, recalculating assessed values for all properties.
How Germany Wealth Tax compares
Germany does not tax net wealth. 191 of 203 countries TaxAtlas tracks take the same approach, which is useful context when weighing where to live, invest, or incorporate.
