Finance Minister Lindner on the explosion of costs when inheriting: "It's a state matter"
Created: 02/12/2022, 14:53
By: Jens Kiffmeier
Trembling before the inheritance tax: Inheriting real estate can be expensive from 2023.
Lindner wants to increase the tax exemptions – but are the federal states going along with it?
Berlin – Small change, big impact: In view of an impending cost explosion for the heirs of real estate in Germany, Federal Finance Minister Christian Lindner (FDP) has called on the federal states to take countermeasures.
In order to absorb huge increases in inheritance tax from 2023, an initiative is needed in the Federal Council.
"I think it's time to increase the exemption limits for inheritance and gift tax," said Lindner to
fr.de
from
IPPEN.MEDIA
.
But this is a “pure state thing”.
As Federal Minister of Finance, he would very much “welcome and support” a move in this direction.
In the ranks of the traffic light coalition, however, this statement is likely to cause unrest.
Inheritance tax: Christian Lindner (FDP) insists on higher allowances for heirs in Germany
In fact, from 2023 onwards, real estate heirs will be faced with a large wave of costs.
A dispute has been raging in politics for weeks.
New valuation rules for inheriting or giving away houses and apartments in Germany are to blame.
According to a revised procedure, the properties are to be aligned more closely than before with the real market value.
In its annual tax law, the traffic light coalition of Federal Finance Minister Christian Lindner (FDP) is implementing a template by former Building Minister Horst Seehofer (CSU), who had to react to a court ruling.
In favor of higher allowances for inheritance tax: Finance Minister Christian Lindner (FDP).
© Kay Nietfeld/avanti/dpa/imago/Montage
Inheritance of real estate: Calculation of inheritance tax - new basis applies from January 2023
The impact is immense.
As a result, from January 1, 2023, the heirs may have to pay higher inheritance or gift taxes.
Why?
Specifically, it is about a necessary change in the material value procedure.
In the future, the valuation of a property to be inherited should be based on a longer useful life.
The factor by which this value is multiplied should also be changed.
Instead of the previous 0.9 to 1.1, the factor should in future be 1.3 to 1.5.
For many heirs, that makes a big difference.
The
NDR
has published a sample calculation: A property with a market value of 400,000 euros, multiplied by the old factor of 0.9 gives 360,000 euros.
The same property multiplied by the new factor 1.5 already amounts to 600,000 euros.
So far, an allowance of 400,000 euros applies, on which no inheritance tax has to be paid.
But because of the new calculations, this can now be used up quickly.
In the example, the heir would have to pay taxes on 200,000 euros.
Dispute over inheritance tax in Germany: Union accuses Lindner of a hidden tax increase
This caused panic among many potential heirs.
Notaries in Germany are registering a real rush, because many families want to quickly get the house handed over by the end of the year.
The SME and economic union has already reacted with sharp criticism.
"Home ownership can become a poisoned gift and a poverty trap for heirs," said CDU member of the Bundestag Gitta Connemann of the
dpa
news agency .
She accused the federal government of operating a hidden tax increase because it would initiate the adjustment of the valuation rule without a simultaneous increase in the tax allowances.
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Lindner wants higher allowances: Minister of Finance calls on the states in the Bundesrat to act
Lindner, who, despite the energy and debt crisis, has ruled out any tax increases, sees himself unjustly pilloried.
In an interview with
fr.de
, he pointed out that the income from inheritance tax would only benefit the federal states.
"Why should I raise a tax that ultimately benefits Markus Söder, but the Federal Minister of Finance has political trouble?" said the Liberal, emphasizing that the federal government is only implementing the legal requirements.
The allegation from the Union camp is therefore "nonsense".
Instead of lamenting, the countries should rather take action themselves, recommended Lindner.
The allowances were last raised in 2009.
How much can you inherit tax-free?
In Germany, between 300 and 400 billion euros are inherited every year or given away during one's lifetime.
There are allowances on which no inheritance tax has to be paid.
These are currently EUR 500,000 for spouses or life partners, EUR 400,000 for children and EUR 200,000 for grandchildren.
It remains to be seen to what extent the Federal Council will play along in the plan.
Because the SPD and the Greens feel little desire to screw around with the tax exemptions.
A dispute over higher inheritance tax rates had already arisen within the traffic light coalition.
The mood in the countries is corresponding.
While the Union-led states want to adjust the allowances via the Bundesrat, the federal states under SPD or Green leadership are reluctant, according to a
survey published by Die
Welt .
It is unclear how the black-green state governments of Schleswig-Holstein or North Rhine-Westphalia will behave.
Inheritance tax and gift tax: The Federal Council is negotiating tax exemptions by December 16th
But time is pressing.
There isn't much time left until the turn of the year.
On December 16, the Federal Council is to make a final decision on the annual tax law presented by Lindner.
Bavaria has already requested changes to the allowances.
If the law is blocked, similar to what Lindner did with citizen money, it would be difficult to reach an agreement in the mediation committee before the turn of the year.
For many heirs, this initially means uncertainty.