West Germany receives the bulk of inheritance and gift transfers, deepening east-west gap
Statistics show that most taxable wealth transfers in 2025 went to western German states, while eastern regions and Berlin received only a small share.
According to the Statistisches Bundesamt, the vast majority of taxable wealth transfers in 2025 were concentrated in western German states, while eastern Länder and Berlin accounted for only a tiny fraction. This imbalance translates into far higher per-person transfer values in the west compared with the east, and a correspondingly larger share of inheritance and gift tax revenue. Experts point out that a large number of inheritances and gifts remain unrecorded because they fall within personal allowances.
The regional gap is influencing one outlet pension debate, with eastern state leaders urging the preservation of a pension system that does not rely on supplemental inheritances. The Federal Constitutional Court may soon reconsider tax privileges for corporations, which could further affect the fiscal landscape.
Why it matters
The uneven distribution of wealth transfers deepens economic disparity between east and west Germany and shapes pension policy debates.
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