Will Germany change its inheritance tax relief for family businesses?

Possibly. The Federal Constitutional Court is reviewing the current 85%/100% relief for business assets, and the SPD has proposed replacing it with a €5 million allowance. Families should plan for more than one outcome.

Does Germany regulate single-family offices like asset managers?

Generally no. Single-family offices managing only their own family's assets face lighter requirements than multi-family offices, which must meet BaFin compliance standards.

Regional Intelligence

Germany

Europe's largest and least visible family office market, built on Mittelstand industrial wealth, where a pending constitutional ruling on inheritance tax relief and a phased corporate tax cut are reshaping succession and structuring.

Family Offices

500+ (est.)

Avg AUM

€400M (est.)

Regulatory Body

Federal Financial Supervisory Authority (BaFin)

Tax Environment

No wealth tax; inheritance tax relief for business assets is under constitutional review, and the corporate tax rate falls from 15% to 10% between 2028 and 2032.

Introduction

Germany has one of the largest single-family office populations in the world, rooted in the Mittelstand — the mid-sized, often family-owned industrial companies that account for more than half of economic output. German family offices are typically discreet, with many having no public presence at all, and range from the Quandt family's AQTON to hundreds of smaller offices in Munich, Hamburg and beyond.

Key Numbers

Verified single-family offices (2026)409

Federal corporate tax rate by 203210%

Largest family office (AQTON, Stefan Quandt)€15B+

Evaluation

Business assets can currently qualify for 85% or 100% inheritance tax relief. A pending Federal Constitutional Court case (1 BvR 804/22) and proposals to replace the relief with a €5 million allowance make succession planning a live issue.