Inheritance Manager
Real Estate Legal Information
Decision-making aid for an inherited house in Germany
Inheriting a house presents you with a complex choice: sell, rent out, or move in yourself? This decision carries both financial and emotional weight. We offer you clear guidance for making a decision about your inherited house in Germany.
With access to Google, BORIS, and Deep Research.
Adhere to legal deadlines: You have only 6 weeks to accept the inheritance and 3 months to report it to the tax office.
A neutral property valuation is the basis for all decisions and can significantly reduce your inheritance tax burden.
Calculate all costs: In addition to inheritance tax, there may be costs for a legally required renovation (GEG) and the sale.
The news of an inherited property is often accompanied by grief and raises pressing questions. Suddenly you are a homeowner and must make one of the most important financial decisions of your life. This guide serves as a reliable decision-making aid for your inherited house in Germany. We systematically guide you through the initial obligations, the three main options, and the associated costs. This way, you can turn uncertainty into a clear, data-driven action plan and preserve the value of your inheritance for the future.
After the inheritance matter arises, a race against time begins, as the legislator sets clear deadlines. Within just six weeks, you must decide whether to accept or reject the inheritance. This decision is binding and should only be made after reviewing possible debts. Regardless, you are required to inform the responsible tax office of the inheritance within three months. An important cost trap can be avoided: if you apply for the correction of the land register within two years of the inheritance, the otherwise due fees will be waived.
Your immediate responsibilities as an heir involve several steps. A careful review of the documents is the first step towards security.
Examine inheritance: Review all documents and the land register to gain an overview of possible encumbrances such as mortgages.
Accept/reject inheritance: Make your decision within the 6-week period. A rejection must be declared either notarized or in probate court.
Inform tax office: Report the inheritance informally within three months to avoid penalty interest.
Apply for certificate of inheritance: You need this document as official proof of your status as an heir for banks and authorities.
Have the land register corrected: Submit the application to the land registry to be registered as the new owner and benefit from the 2-year fee exemption.
These administrative tasks form the foundation for the next crucial step: determining the value of the property.
Every decision about the future of your inherited property hinges on its current market value. The tax office determines its own value for setting the inheritance tax, which is often based on general data and does not take into account the property's individual condition. This official value can be up to 30% above the actual market value. Therefore, an independent market value appraisal is essential. It serves not only as proof of a lower value to the tax office to reduce the tax burden but also as the basis for a realistic sale price or the fair division among co-heirs. A data-based valuation from Auctoa provides you with this objective foundation quickly and reliably. This way, you know exactly what your inherited house is worth. With this knowledge, you can objectively weigh the pros and cons of a sale.
Sale is often the quickest and most straightforward solution, especially for inheritance communities. It provides immediate liquidity and fairly distributes the value among all parties involved, thus avoiding conflicts. However, taxes may apply. The so-called speculation tax is due if less than ten years have passed between the original purchase by the decedent and your sale. Its amount depends on your personal income tax rate. Additionally, there are sales costs such as brokerage fees, which often range between 3% and 7% of the sale price, as well as notary fees of around 1.5%. A detailed checklist for selling helps keep track of all expenses. Selling is ideal if you need capital or wish to avoid the administrative burden of a property. But what if you view the property as a long-term investment?
Renting out a property ensures you receive regular income and allows you to benefit from future appreciation in value. For rented properties, the tax office also only considers 90% of the market value for inheritance tax purposes, which reduces your tax burden right from the start. However, as a landlord, you are also responsible for maintenance and must set aside reserves of at least €10 per square metre per year. You must also tax your rental income at your personal rate.
The role of a landlord comes with several obligations.
Tenancy Agreement: Legally secure contracts protect you from future disputes.
Maintenance: You are responsible for repairs and the upkeep of the building's systems.
Service Charge Settlement: You must provide a correct annual statement for your tenants.
Tenant Search: In the event of a change, you must find reliable and financially sound new tenants.
A sales or rental calculator can highlight the financial attractiveness of this option. The alternative is moving in, which primarily offers emotional benefits.
Moving into the family home is an emotional decision that can also offer tax advantages. Spouses and children can inherit a family home up to 200 sqm in living space completely tax-free, provided they live in it themselves for at least ten years. However, be cautious of hidden costs: The Building Energy Act (GEG) mandates a renovation obligation for older properties when ownership changes. As an heir, you have two years to, for example, insulate the roof or replace a heating system that's over 30 years old. These measures can quickly lead to costs exceeding 50,000 euros and must be included in your calculations. A guide for properties in need of renovation is a crucial read here. These costs are particularly relevant when multiple heirs are involved.
If the inheritance community consists of several people, all essential decisions must be made unanimously. This carries significant potential for conflict since each co-heir has different goals and financial capabilities. If no agreement can be reached on sale, rental, or use, the last resort may be a compulsory auction—a process that often results in a sale price up to 30% below market value. Clear communication and neutral moderation are crucial. Seek early support, for example from the Auctoa Inheritance Manager, to find a fair solution for everyone. An objective evaluation of the property is the first step to creating a factual basis for discussion and avoiding escalation. A clear decision-making guide for inheritance communities can structure the process. This way, a complex starting point becomes a shared success story.
The decision regarding an inherited house is one of the biggest financial milestones in life. A hasty choice driven by emotions can cost you thousands of euros. The key to success lies in a structured approach: clarify the facts, determine the real value, and analyze all options with a cool head. Use a professional decision-making aid for your inherited house in Germany to correctly assess risks such as renovation obligations or taxes. For an initial, data-based assessment, you can use our ImmoGPT chat at any time. With the right strategy, your inheritance becomes not a stumbling block, but a valuable cornerstone for your financial future.
The Bundesfinanzministerium explains the inheritance and gift tax in Germany.
Wikipedia provides a comprehensive overview of inheritance law in Germany.
Welche Kosten kommen beim Erbe einer Immobilie sofort auf mich zu?
Direkt nach dem Erbfall müssen Sie mit Kosten für den Erbschein (abhängig vom Nachlasswert), eventuell Notarkosten und Gebühren für die Grundbuchberichtigung rechnen (letztere entfallen bei Antragstellung innerhalb von zwei Jahren). Laufende Kosten wie Grundsteuer, Versicherungen und Betriebskosten gehen ebenfalls sofort auf Sie über.
Verkaufen, Vermieten oder Einziehen – was ist die beste Option?
Die beste Option hängt von Ihrer persönlichen Lebenssituation, Ihren finanziellen Zielen und dem Zustand der Immobilie ab. Verkaufen bietet schnelle Liquidität. Vermieten schafft langfristiges Einkommen, erfordert aber Verwaltungsaufwand. Einziehen ist emotional befriedigend, kann aber hohe Sanierungskosten nach sich ziehen. Eine datenbasierte Analyse ist entscheidend.
How is the value of an inherited house determined for tax purposes?
The tax office uses standardised procedures (e.g. comparative value method), which often lead to a high valuation. You have the right to prove a lower, more realistic market value with a qualified appraisal by an expert, thereby reducing your tax burden.
What are the renovation obligations under the GEG for heirs?
The Building Energy Act (GEG) obliges new owners of existing properties to carry out energy renovations. This typically includes replacing boilers that are more than 30 years old and insulating the top floor ceiling or the roof. You have two years to implement these measures.
What can I do if the inherited house is in debt?
If the debts (e.g. mortgages) exceed the value of the property, you can disclaim the inheritance within six weeks of awareness. This way, you are not liable for the liabilities of the deceased. A prior examination of the land register entries is therefore essential.
Do I need an energy certificate to sell an inherited house?
Yes, at the latest when prospective buyers view the property, you must be able to present a valid energy certificate. The cost of issuing it ranges from 100 to 500 euros, depending on the type of certificate.
