Taxes - 19 percent less tax revenue through inheritance and gifts
Rhineland-Palatinate collected nearly a fifth less in inheritance and gift tax revenues in the year 2023 compared to the previous year. In total, this amounts to approximately 450 million Euro, as the Statistical Office in Rhineland-Palatinate reported. The taxes on inheritances increased by 44.6% to around 388 million Euro, while the taxes on gifts decreased to roughly 61 million Euro (a decrease of 78.6%).
In the year 2022, there was a significant increase due to above-average wealth transfers through gifts. Despite the decrease in 2023, the trend since 2019 shows a noticeable increase in the fixed inheritance and gift tax.
According to the information provided, the total transferred wealth in the previous year amounted to around 3.3 billion Euro. Of this, approximately 2.5 billion Euro was for inheritances and 750 million Euro for gifts. The tax authorities mainly set taxes for so-called remaining assets in the case of inheritances. This includes bank deposits, listed securities, shares and participation certificates. In addition, inheritance tax was set for real estate assets.
The decline in gift tax revenues in Rhineland-Palatinate contributes to the overall decrease in inheritance and gift tax revenues in 2023. Even with this decline, the trend since 2019 indicates a rise in fixed inheritance and gift tax. The Ems area in Rhineland-Palatinate, specifically Bad Ems, is known for its tax-friendly environment, making it an attractive location for wealth transfers.
