The federal election 2025 took place on 23 February and marked a decisive turning point in Germany’s political and economic future. Under the leadership of Friedrich Merz, the CDU/CSU gained the strongest result, with 28.5% of the vote, while the AfD achieved a historic result, rising to become the second strongest party. At 16.4% of the vote, the SPD suffered the worst result in its history, which caused chancellor Olaf Scholz to resign from leading the party. With 4.3%, the FDP failed to meet the five-percent threshold for entering parliament and will not be represented in the new Bundestag.
After intensive negotiations, the CDU/CSU and SPD have agreed on a grand coalition. The Coalition Agreement 2025, which is now available, sets the course for tax, economic policy and digitalisation that could have far-reaching consequences for both companies and wealthy private individuals.
The focus is on investment promotion, relief for small and medium-sized incomes, simplification of tax law and a stronger digital infrastructure - including a newly created Federal Ministry for Digitalisation.
In our topic hub, we analyse the planned projects and show what impact they could have on your strategic, tax and financial decisions. Stay informed to set the right course for your company and your future.
What do the expected future German government’s plans look like for private equity clients, family offices and family businesses? In this briefing, we analyse the coalition agreement to see what tax changes private clients can expect in the new parliament and why it’s crucial to consider business and personal succession now.
In their 2025 coalition agreement, the CDU, CSU and SPD have reached agreement on a wide range of tax and economic measures. Key elements include investment incentives, tax relief and stimuli to digitise public administration and business. The planned changes affect both companies and private taxpayers. In this article, we summarise the most important points.
After a tense election, the new coalition seems to be certain – the next German government will probably be formed by the CDU/CSU and the SPD. But what does this mean in terms of tax for family businesses, family offices and (Ultra)-High-net-worth individuals? Based on the parties’ manifestos, we’ve analysed what tax changes private clients can expect in the new legislative period and why it’s crucial to consider business and wealth succession now.
The federal election 2025 will decide the future direction of tax policy in Germany. Depending on how the election goes, there could be changes to corporate taxes, income taxes or capital tax.
Campaigning in 2025 is expected to turn heavily on tax policy issues. The focus is on:
The 2025 federal election could be decisive for the implementation and further development of OECD minimum tax in Germany. The tax, which provides for a minimum level of taxation of 15% on international companies, is supported in principle by all the parties, but they differ in their approach to laying out the details. Potential changes could come about from national transposition or additional measures to prevent shifts in tax.
Yes, depending on how the election goes, companies may have to reckon on new tax liabilities. Points under discussion include raising the corporation tax rate, a levy on capital assets and changes to trade tax. At the same time, there are also considerations to create tax incentives for investments in digitalisation and sustainability. Companies should therefore keep a close eye on the parties’ tax manifestos.
There is again a lot of discussion from some parties in the election about introducing a capital tax. The goal is to use high levels of assets more to finance public spending. However, the level and structure this tax would take is contested. While some parties are clearly demanding it, others are rejecting it, pointing to the potential hindrance to the economy’s growth it would cause. How and whether a capital tax will be introduced after the election remains to be seen.
After the election, forming the government will begin in several steps.
If a coalition does not come about, there are various scenarios.
A coalition agreement is a written agreement between the parties that want to form a government. It contains:
It is not legally binding but has a high level of political obligation.
According to the Basic Law, the previous government is supposed to remain in office in an interim capacity until a new government is formed. This means that:
What legislation and reforms are implemented depends on the new coalition. The Coalition agreement typically includes plans concerning:
The actual plans are decided on in the coalition negotiations and presented with the new chancellor’s declaration on the government. Our insights will keep you up-to-date – particularly on tax policy and economic developments after the 2025 election.