German Constitutional Court to Review Inheritance Tax Rules in October

The German Federal Constitutional Court (Bundesverfassungsgericht) will examine several aspects of the country's inheritance and gift tax law in a two‑day hearing in mid‑October. On 12 October the court will address the legislature’s competence to set tax rules, and on 13 October it will focus on the exemption of business assets, especially the treatment of company transfers.

The review, prompted by a request from the Bavarian state government, will consider the constitutionality of provisions on property valuation, personal allowances and tax rates. Critics argue that allowances and rates have not kept pace with inflation or regional real‑estate price differences. The court’s judgments are expected only after several months.

The outcome could reshape how inheritance tax affects family‑owned businesses and wealth transfers in Germany.