An inherited property often comes with strong emotions and many open questions. What needs to be done, what taxes apply, and what is the best thing to do with it? This guide provides orientation.
The first steps
After an inheritance, a number of things need to be clarified:
- Use the certificate of inheritance or the will to establish who becomes the owner
- With several heirs: organise the community of heirs (Erbengemeinschaft)
- Have the land register corrected (free of charge within two years)
- Review the documents: land register, loans, insurance policies, tenancy agreements
- Have the current value of the property determined
Inheritance tax and allowances
Whether inheritance tax applies depends on the degree of kinship and the value. The most important allowances:
| Heir | Allowance |
|---|---|
| Spouse / registered partner | 500,000 EUR |
| Children (per parent) | 400,000 EUR |
| Grandchildren | 200,000 EUR |
| Siblings, nieces, nephews | 20,000 EUR |
Owner-occupied residential property can remain tax-free for spouses and children under certain conditions (including ten years of owner occupation). A tax adviser handles the precise assessment.
Sell, let or live in it?
| Option | Fits when ... | Points to consider |
|---|---|---|
| Selling | you want quick clarity / community of heirs | check the speculation period |
| Letting | ongoing income is desired | management & maintenance |
| Living in it | there is personal need | modernisation costs |
Particularly within a community of heirs, selling is often the most pragmatic route, because the proceeds can be divided easily and disputes are avoided.
Frequently asked questions
Do I have to pay inheritance tax on an inherited house?
Only if the value exceeds your personal allowance. Spouses (500,000 EUR) and children (400,000 EUR) have high allowances; owner-occupied residential property can remain entirely tax-free under certain conditions.
How quickly do I have to decide?
There is no fixed deadline for selling or letting. However, the correction of the land register is free of charge within two years, and running costs (loan, property tax) continue - so it pays to decide promptly.
What applies with a community of heirs?
All co-heirs must in principle agree to any disposal. If no agreement is reached, in extreme cases a partition auction may loom. A sale with division of the proceeds is usually the amicable solution.
We value your inherited property free of obligation and show you the best way to realise it - discreetly and with experience in communities of heirs.