Business · Economy · 1 day ago
Hettich warns inheritance tax could strain family businesses
Andreas Hettich leads the advisory board of Hettich, a fourth-generation family business that makes furniture fittings and employs about 8,200 people.
He argues that inheritance tax without current relief could put large family firms under financial pressure.
Under the rules he describes, relief depends on keeping the business running and maintaining its payroll.
Hettich says that paying the tax from company profits can leave little money for owners or new investment.
He also warns that higher tax bills could lead more business families to sell or consider leaving Germany.
The debate is taking place ahead of an expected decision by Germany’s Federal Constitutional Court on inheritance tax rules.
Hettich says the tax could weaken family firms’ ability to compete with publicly listed companies and businesses in Austria, where inheritance tax was abolished in 2008.
Andreas Hettich, chairman of the advisory board of the family-owned Hettich Group, argued that inheritance-tax relief rules are important to the survival of large family businesses.
Hettich said full tax relief requires heirs to continue operating the business for at least seven years and maintain its wage bill.
He said that, for business inheritances above €26 million, heirs must also show they cannot pay the inheritance tax from personal assets to qualify for relief.
Hettich argued that paying inheritance tax from company profits can put a business under pressure because those profits are also subject to tax.
He said Hettich had seen a sharp rise in gifts of company shares and warned that some business families were considering selling or leaving Germany.
- Who
- Andreas Hettich, chairman of the advisory board of the Hettich Group
- What
- Hettich defended inheritance-tax relief for family businesses and warned that higher tax burdens could weaken them.
- When
- October 10, 2026; a Federal Constitutional Court hearing was described as upcoming, but no date was given.
- Where
- Germany
- Why
- Hettich said paying inheritance tax from business profits could threaten companies' ability to invest and remain competitive.
This story does not have two clearly opposing sides.
Ein Unternehmen arbeitet dann 15 Jahre quasi nur für den Fiskus.
Das hat nichts mit Dolce Vita zu tun.
This story does not have a timeline yet.
- Hettich Group workforce
- Around 8,200 employees, including about 3,900 in Germany
- Company history
- Founded in 1888; its headquarters are in Kirchlengern, in the Herford district
- Relief conditions cited by Hettich
- At least seven years of continued operation and maintenance of the wage bill
- Business inheritance threshold
- €26 million
- Inheritance-tax rates cited by Hettich
- Up to 30% for family members and 50% for third parties
Sources
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