Inheritance Manager
Real Estate Legal Information
Selling or renting out inherited apartment in Berlin
You have inherited a flat in Berlin and are faced with the question: sell or rent out? This decision has wide-ranging financial implications. We provide you with the key figures and a clear analysis, so that you can make the right choice for your assets based not just on intuition, but on facts.
With access to Google, BORIS, and Deep Research.
Sell if you need quick liquidity and the 10-year speculation period has ended to benefit from sale prices of around €5,388/m² in Berlin.
Rent for long-term wealth building if you want to achieve a net rental yield of over 3.5% and take advantage of tax benefits such as the depreciation of maintenance costs.
Always check your personal inheritance tax allowance first (e.g. €400,000 for children) and the speculation period, which depends on the deceased's purchase date.
Inheriting a property in Berlin is a significant event, often tied to emotional and complex financial questions. There is considerable uncertainty: Is now the right time to sell and benefit from the high prices? Or does long-term renting in one of Europe's most dynamic rental markets promise a safer return? Many heirs fear making a wrong decision that could cost them thousands of euros. This article guides you through the crucial factors. We analyze the current market situation, highlight the tax pitfalls such as inheritance and speculation taxes, and compare the potential rental return to the quick liquidity advantages of a sale. This gives you a solid, data-driven basis for your strategy.
The decision between selling and renting an inherited apartment in Berlin depends on your personal financial situation and long-term goals. A sale offers immediate liquidity, while renting generates a steady, passive income stream. Both options have specific tax implications and costs that must be carefully considered.
Sale: The average selling price for apartments in Berlin is currently around €5,388/m². A sale quickly provides liquidity, but may trigger capital gains tax if the deceased owned the apartment for less than 10 years.
Rental: The average offered rent for existing properties is approximately €16.79/m². This ensures ongoing income and potential appreciation, but also involves management effort and maintenance costs of about €1/m² per month.
Taxes: Children are entitled to an inheritance tax allowance of €400,000. Capital gains tax does not apply if the property was owned by the deceased for over 10 years or was used for personal residential purposes.
Yield: A solid net rental yield should be between 3.5% and 4% to be considered an attractive investment.
These key figures form the basis for the following detailed analysis, which will help you develop the strategy that suits you best.
The Berlin property market remains robust in 2025, offering a reliable basis for your decision. Average apartment prices have settled at around €5,388 per square metre, representing a slight increase of approximately 2% compared to the previous year. In prime locations like Charlottenburg-Wilmersdorf, prices can even reach up to €8,628/m². This stability indicates that a sale can currently result in an attractive return. Simultaneously, the population growth of 3.5% since 2018 is driving demand for rental space. The vacancy rate is extremely low at 0.3%, indicating high rental security. The average basic rent for existing apartments climbed to €13.03/m², a 5.5% increase year-on-year. Particularly in new builds, high rents of €22.17/m² can be achieved. This market data shows: both selling and renting are currently economically sensible options. The question is, which better suits your goals. An accurate valuation of your inherited apartment is the first step to unlocking its full potential. The next section highlights the advantages and costs of a direct sale.
The sale of an inherited apartment in Berlin is often the most direct way to unlock wealth and dissolve complex heir communities. With a current average price of 5,388 €/m², an 80-square meter apartment can yield proceeds of over 430,000 €. This sum is then at your free disposal – whether for other investments, debt repayment, or fulfilling personal wishes. Another advantage is avoiding future risks such as rental defaults or rising maintenance costs. The costs associated with the sale, such as notary and land registry fees (approximately 1.5% of the purchase price), are usually borne by the buyer. Since 2020, brokerage fees are shared between the buyer and the seller. However, before you take this route, you should check the tax implications. A detailed checklist for the sale helps keep track of all the steps. The tax framework conditions are crucial and will be examined in more detail below.
Renting out your inherited Berlin apartment can be an attractive strategy for long-term wealth building. With an average rent of €13.03 per square metre, an 80-square-metre apartment generates annual cold rental income of over €12,500. This creates a continuous cash flow. Additionally, you benefit from the potential appreciation of the property's value, which has been significant in Berlin in recent years. A key advantage of renting is the tax deduction options. The following expenses can be claimed as advertising costs to reduce your tax burden:
Maintenance costs: Plan approximately €11.50 per square metre annually, which you can fully deduct.
Depreciation (AfA): You can annually depreciate 2% of the acquisition or construction costs of the building.
Management costs: Fees for property management are also deductible.
Financing costs: If you take out a loan for renovations, the interest is tax-deductible.
For rented properties, the taxable value for inheritance tax is reduced by 10% flat rate. This can make a significant difference. Before making a decision, you should determine the realistic rent for your apartment. But what taxes specifically apply to both options?
Whether you sell or rent out the inherited apartment in Berlin, two types of taxes are crucial. Inheritance tax is due as soon as you accept the inheritance. For direct children, there is a high allowance of €400,000 per parent. Spouses can even inherit up to €500,000 tax-free. If the market value of the property determined by the tax office is below this threshold, you do not pay inheritance tax. An inheritance tax calculator can provide an initial guideline here. The second important tax is the capital gains tax. This only applies if you sell the apartment within ten years of the original purchase by the deceased. Therefore, the period does not begin with the inheritance event. For example, if the deceased purchased the apartment in 2012, you can sell it tax-free from 2023 onwards. An exception applies to owner-occupation: If the apartment was occupied by the deceased or yourself in the year of sale and the two preceding years, the tax is also waived. Careful examination of these deadlines is essential to avoid an unnecessary tax burden of up to 45% on the profit. Once the tax basics are clarified, a direct comparison of the two options follows.
Let's directly compare the two options to make the best financial decision for your inherited apartment in Berlin. The choice heavily depends on your individual needs: Do you need capital in the short term or are you aiming for long-term, passive income? A net rental yield of at least 3.5% is considered a good benchmark for a worthwhile investment. Let's take an example of an 80 m² apartment:
Scenario A: Sale
Sale proceeds (at €5,388/m²): €431,040. After deducting possible agent fees (approx. 1.5%) and without capital gains tax, a large sum is available to you. This is ideal for paying off debts or settling with a group of heirs.Scenario B: Rental
Annual cold rent (at €13.03/m²): €12,508. From this, you need to deduct non-transferable costs and the maintenance reserve (approx. €960/year at €1/m²/month). The remaining amount of over €11,500 must be taxed at your personal income tax rate.
Renting is more capital-intensive and requires ongoing management, but it protects your assets from inflation and allows them to grow. A comparison calculator for sale or rental can provide individual figures. But how do you find the final strategy?
The decision to sell or rent an inherited apartment in Berlin is not just a matter of emotion. As the analysis shows, current market data and tax conditions provide a clear basis for decision-making. Selling at current prices around €5,388/m² is advisable if you need quick liquidity or wish to avoid the administrative burden. Renting, with rental prices over €13/m² and a return of over 3.5%, is ideal for long-term wealth building and generating passive income. Check the ten-year speculation period and make optimal use of your inheritance tax allowance of €400,000 as a child. The key lies in an objective evaluation of the property and an honest analysis of your personal financial goals. A data-driven evaluation from Auctoa or a conversation with our ImmoGPT can help eliminate any remaining uncertainty and set the course for your financial future correctly. Make the choice that will be right for you not only today, but also in ten years' time.
The Federal Statistical Office provides tables and information on house and land prices in Germany.
The German Bundesbank offers an indicator system for the residential property market.
The Senate Department for Housing in Berlin provides comprehensive information on the Berlin rent index.
Wikipedia offers an overview of the real estate market in Germany.
The Committee of Valuers for Real Estate Values in Berlin publishes detailed market analyses.
Information on standard land values in Berlin can be found at the Committee of Valuers for Real Estate Values in Berlin.
The German Tenants' Association is an important representative for tenants and offers comprehensive information.
The Federal Ministry of Finance provides detailed information on inheritance and gift tax.
Do I have to personally fulfil the 10-year rule for the capital gains tax on an inherited flat?
No, the period does not start with the inheritance event. The decisive factor is the original purchase date by the testator. If they acquired the flat more than 10 years ago, you can sell it immediately tax-free.
What happens if the value of the inherited flat exceeds my inheritance tax allowance?
You only need to pay tax on the amount that exceeds the allowance. For example, as a child with an allowance of €400,000, you inherit a flat worth €450,000. Only the difference of €50,000 is taxed at your personal inheritance tax rate (starting at 7% for children in tax class I).
Can I deduct renovation costs for an inherited flat from my taxes?
Yes, if you are renting out the flat. In this case, renovation costs are considered as advertising expenses and reduce your taxable income. However, this is generally not possible if you sell and then use the flat yourself.
How do I determine the exact value of my inherited flat in Berlin?
For an initial estimate, online tools such as Auctoa ImmoGPT can be helpful. For a binding assessment that will be recognized by the tax office, you should obtain a professional market value appraisal from a certified expert.
What is a co-heirship and how does it affect my decision?
A co-heirship arises when there are multiple heirs. All decisions, including selling or renting, must be made jointly. Selling is often the simplest solution to fairly distribute the inheritance and avoid conflicts.
What is a realistic return on a rental property in Berlin?
While the gross return is often over 4%, the net rental yield is more meaningful. After deducting all non-apportionable costs and reserves, a net return of 3.5% to 4% in Berlin is considered solid and desirable.
