Elisabeth Kaiser calls for inheritance tax sharing to reduce German wealth gap

Disparity in wealth and inheritances

Federal Commissioner for Eastern Germany Elisabeth Kaiser presented her annual report on the status of German unity in Berlin on 30 September 2026, ahead of German Unity Day on 3 October. Data released by the Federal Statistical Office shows that western German states received 95% of all taxable inheritance and gift transfers in 2025, amounting to €142.5 billion. In contrast, the five eastern federal states and Berlin together accounted for €8.0 billion, representing 5% of the total value despite holding 19% of Germany's population. Assessed inheritance and gift taxes reached €21.4 billion nationwide in 2025, of which €20.4 billion accrued in western states and €1.0 billion in the east. On a per capita basis, transferred taxable wealth averaged over €2,100 in the west compared with under €500 in the east.

Kaiser pointed to these figures when addressing reporters before the presentation of her report.

The new figures show very clearly how different the material starting conditions in East and West still are.

Proposals for fiscal equalization and youth capital

To reduce the wealth divide between eastern and western regions, Kaiser called for reforms to the inheritance tax system. She proposed reviewing tax privileges and exemptions on very large transfers and creating an interstate financial equalization mechanism. Under this proposal, additional tax revenue from large inheritances would not remain solely with high-revenue western states, but would be distributed to support schools, universities, and infrastructure in eastern states. Kaiser also suggested introducing a basic inheritance for every 18-year-old citizen to provide universal starting capital for professional training or asset building, following the implementation of the early retirement start scheme.

Kaiser explained her rationale in a contribution to the Rheinische Post.

Those who inherit little must not lose twice: in private wealth and in the public opportunities of their state.

Household wealth and social mobility perceptions

The commissioner noted that wealth discrepancies stem from differing economic structures before and after the 1990 reunification. Statistics from 2023 show that average net household wealth in eastern Germany stood at €125,500, compared with €257,100 in western Germany. Real estate wealth averaged €97,800 per household in the east versus €214,500 in the west.

Survey results from the Deutschland-Monitor 2026 show public doubt regarding social mobility. While 95% of respondents said effort and hard work should determine social advancement, and 91% cited education, actual perceptions diverged sharply. Eighty percent of respondents identified existing wealth as decisive for advancement, 80% cited personal connections, 72% pointed to social origin, and 69% identified effort and hard work as decisive in practice, resulting in a 26 percentage point gap between expectation and reality.

Representation in federal leadership

Kaiser also addressed the representation of eastern Germans in decision-making bodies across administration, corporate boards, academia, the judiciary, and the media. In top federal authorities, the share of eastern Germans in leadership roles rose from 13.9% in 2022 to 16.3% in 2026. Kaiser emphasized that participation remains insufficient at higher administrative tiers.

The higher the leadership level, the lower the East German share actually is.

Regional tax office records illustrate the modest scale of eastern estates. In Saxony, the statistical office in Kamenz registered nearly 2,400 taxable inheritance cases in 2024 with a collective value of €609 million. Bank accounts formed the largest portion of these estates at 37%, followed by real estate assets at 27%.