Bavaria takes a special approach to inheritance tax

Bavaria does not want to apply the directive on the application of the inheritance tax reform from last year that was adopted by the other federal states.

After a long tug-of-war, politicians passed a reform of the inheritance tax last year because the Federal Constitutional Court had deemed the old regulations unconstitutional. Bavaria had already successfully pushed for several relief measures for heirs during the legislative process, but was unsuccessful in the deliberations on the associated administrative directive. As a result, the state now does not want to apply the directive on the new law adopted by the other German states in the summer. Criticism from several other states is correspondingly strong. However, the federal government's and the other states' means of exerting pressure are very limited because the inheritance tax is a state tax.