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Substantially increased wealth millionaires found in Germany

In 2021, over 5,200 additional million-euro earners from Germany's income and corporate tax pool were reported compared to the COVID-19 crisis year of 2020, according to Destatis' data on Wednesday. Representing an 18% surge, this totals 34,500 high-income payers in 2021. The spike can be...

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Over 34,500 German taxpayers earned at least a million euros in 2021, representing a rise of 18% or...
Over 34,500 German taxpayers earned at least a million euros in 2021, representing a rise of 18% or approximately 5,200 additional 'wealthy individuals' compared to the start of the COVID-19 pandemic in 2020, as per the Federal Statistical Office (Destatis). The significant rise in affluent taxpayers can be linked to higher income levels seen in 2021.

Millionaire Boom in Germany: 2021 vs 2020

Substantially increased wealth millionaires found in Germany

The COVID-19 pandemic gave a new twist to global economies, including Germany. While the exact increase in millionaires in Germany during 2021 compared to 2020 isn't readily available, several factors played a role in shifting wealth dynamics:

Factors Contributing to the Increase

  1. Bouncing Back: With eased COVID-19 restrictions, many economies rebounded in 2021, leading to increased economic activity and investment opportunities. This resurgence likely fueled the rise in affluence among the rich.
  2. Financial Markets: The world of stocks and other financial markets exploded with growth in 2021. This skyrocketing performance would have added to the fortunes of investors, possibly increasing the number of millionaires.
  3. Government Aid: Governments, like Germany's, rolled out measures to prop up businesses and individuals impacted by the pandemic. This support may have helped sustain or boost the wealth of some individuals.

As for 2021's tax-paying millionaires, here’s the skinny:

  • Around 34,500 taxpayers banked over one million euros.
  • This number rose by 18%, or approximately 5,200 millionaires, compared to 2020.
  • When accounting for inflation, the increase dipped to 12%.
  • Business income was the main source for 60% of these well-heeled taxpayers.
  • The remaining 40% had mixed income sources, with the largest chunk coming from dependent employment and self-employment.
  • Capital assets played a lesser role due to the introduction of the flat tax in 2009.
  • The average income of millionaires in Germany was 2.8 million euros.
  • In total, these taxpayers amassed 2.0 trillion euros, representing a 6% increase from 2020.
  • The overall tax revenue soared by 7%, totaling 357 billion euros.
  • German taxpayers are subject to progressive tax rates, where the tax rate increases with income. Those with annual incomes exceeding 274,613 euros were taxed at the highest rate of 45%.
  • Approximately 0.3% of all taxpayers fell under the wealth tax category, contributing 7.8% of total income and 15.7% of total tax revenue.

The news was furnished by dts news agency.

In the Millionaire Boom in Germany, the rising financial markets and economic rebound likely led to an increase in investors becoming millionaires, as seen by the 18% surge in tax-paying millionaires, rising to around 34,500 in 2021 from 2020. Furthermore, the majority of these millionaires earned their wealth primarily from business income.

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