95 percent of wealth is inherited in the West
In western Germany, more than 140 billion euros in assets were given away or inherited in 2025 - in the east it was only a few billion. However, the statistics do not reflect everything.
Quick Look
- According to the Federal Statistical Office, around 95 percent or 142.5 billion euros of the tax-recorded asset transfers in 2025 occurred in western Germany.
- In the East, however, it was only eight billion euros.
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Why It Matters
Decades after reunification, there are still clear differences in inheritances and gifts between East and West.
Even decades after reunification, there are clear differences between East and West in Germany - namely when it comes to inheriting and giving away assets.
In total, the West accounted for 142.5 billion euros in 2025, or 95 percent of the total value of asset transfers taken into account for tax purposes, as the Federal Statistical Office announced. The eastern states and Berlin only receive eight billion euros from inheritances and donations.
At the end of 2025, almost a fifth of the population lived in the eastern countries and Berlin (19 percent). However, they only accounted for five percent of the wealth transfers recorded for tax purposes.
Mathematically, a good 2,100 euros per capita were transferred in the west, while in the east it was just under 500 euros. This inequality is also reflected in the tax assessed.
Of the total 21.4 billion euros in inheritance and gift tax, 20.4 billion euros were incurred in the West and one billion euros in the East.
However, statisticians pointed out that the figures do not reflect all wealth transfers. Most inheritances and gifts are within the personal allowances and are therefore not recorded in the statistics. Inheritance and gift tax is a country tax.
The enormous differences between East and West also play a role in the current pension debate. In view of the significantly lower inheritances, several prime ministers in East Germany are calling for the retention of the tax-free pension with 45 years of contributions.
Among other things, they point out that inheritances and gifts supplement pensions much less frequently in the East. For many East German retirees, the statutory pension is the only financial pillar in old age.
The Pension Commission had campaigned for the abolition of the so-called pension at the age of 63.
Major heirs only paid two percent inheritance tax in 2025. However, the Federal Constitutional Court could soon overturn inheritance tax privileges for companies. New calculations show how far these go.
Open Questions
- How much is the non-taxable assets?
- How will the allowances change in the future?
