Have you inherited a house and are wondering how quickly you need to act? The unexpected inheritance triggers a series of deadlines, missing which could cost you thousands of euros. This guide presents the 5 crucial time frames that you need to know as an heir.
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The topic briefly and concisely
Within 6 weeks of becoming aware of the inheritance, you must decide whether to accept or renounce it.
You must report the inheritance to the tax office within 3 months, regardless of any potential tax liability.
The free re-registration of the land registry is only possible if the application is submitted within 2 years of the occurrence of the inheritance.
An inherited house is more than just an asset – it is a project with strict deadlines. Did you know that a crucial turning point is reached within the first 6 weeks? Many heirs lose money because they are unaware of the critical deadlines related to probate court, the tax office, or the land registry office. This article provides you with a clear roadmap so that you can act legally, optimise taxes, and avoid costly mistakes. We guide you step-by-step through the process and show you how to make the right decisions from day one.
The 6-week deadline: Accept or Decline?
Upon becoming aware of the inheritance, your most important deadline begins: within just 6 weeks, you must decide whether to accept or reject the inheritance. This decision is binding and should not be taken lightly, as you inherit not only the house but also any debts of up to 100% of the property's value. A rejection must be declared in person at the probate court or through a notary and costs at least 30 euros. The deadline is extended to 6 months only if the deceased lived abroad or if you were abroad at the beginning of the deadline. Checking the land register for encumbrances is essential at this stage. Once you have overcome this first hurdle, further administrative duties follow.
Tax Office & Taxes: The 3-Month Reporting Obligation
Regardless of whether you will have to pay inheritance tax later, you are legally obliged to report the inheritance to the relevant tax office within 3 months. This reporting obligation under § 30 ErbStG applies from the time you become aware of the inheritance situation. An exception exists only if a German court or notary opens a will that clearly shows your relationship and does not include real estate or foreign assets. The notification can be informal, but it must include essential information such as the value of the estate. A late notification may be considered a tax offence. After informing the tax office, the next step is the official transfer of ownership in the land register.
Correcting the land register: Take advantage of the 2-year free period
As the new owner, you are obliged to update the land register in your name. For this, the legislator grants you a generous period of 2 years after the inheritance to apply for the transfer free of charge. If you miss this deadline, costs will incur based on the market value of the property, which can quickly amount to several thousand euros. An application for land register correction can also be submitted without a certificate of inheritance if there is a notarial will. The decisive factor for the exemption from fees is the date the application is received by the land registry office, not the processing time. If the community of heirs consists of several people, the situation becomes more complex.
Erbengemeinschaft: The 2-month pre-emption right of co-heirs
If you are part of a community of heirs, you cannot independently dispose of the property. If a co-heir wishes to sell their share to an external party, the remaining co-heirs have a legal right of first refusal. The deadline to exercise this right is 2 months after the co-heirs have been informed about the notarised purchase agreement. This right is intended to prevent third parties from entering what is often a familial community. The co-heirs can enter into the existing purchase agreement under exactly the same conditions. Good communication is crucial here to find a solution for the community of heirs. Once the future of the property is clear, the focus shifts to tax planning.
Planning the Sale: Optimising the 10-Year Speculation Period
If you are planning to sell the inherited house, the ten-year speculation period is crucial to saving on taxes. This period does not start with the inheritance but with the original purchase date by the deceased. If the purchase was more than ten years ago, the profit from the sale is completely tax-free for you. If the property was acquired within the last ten years, personal income tax is applicable on the capital gain. An exception applies if the house was solely occupied by the owner during the year of sale and the two preceding years. An accurate valuation of the property is the basis for any sales decision. However, there are also tax details to consider for personal use or rental.
Tax pitfalls in self-use and rental
Inheritance tax can be waived under certain conditions if you use the inherited family home yourself. As the deceased's child, you must move in without delay, usually within 6 months, and live in the property for at least 10 years. The living area is limited to 200 square metres; any excess is proportionately taxed. If you cease personal use before the 10-year period ends, the inheritance tax becomes payable retrospectively. When renting out the property, you must tax the rental income, but you can also deduct expenses such as property tax or renovation costs. A data-driven analysis, like the one Auctoa offers with the Inheritance Manager, helps you find the financially best option between selling, renting and personal use.
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If you inherit a house, you must act quickly as the case of inheritance triggers a cascade of deadlines. The first 6 weeks are crucial for acceptance or renunciation, followed by the 3-month notification obligation to the tax office. Make use of the 2-year exemption from fees for updating the land register and pay attention to the 2-month right of first refusal in communities of heirs. Knowledge of these deadlines is the key to avoiding financial disadvantages of several thousand euros and optimising the inheritance. A well-founded, neutral valuation of your property is the best basis for all further steps. Act informed and thus secure the value of your inheritance.
Additional useful links
The Bundesfinanzministerium provides comprehensive information on inheritance and gift tax.
Wikipedia offers a detailed article on inheritance law in Germany.
The KfW provides information on funding programmes for existing properties, which can also be relevant for inherited properties.
FAQ
How quickly do I need to act after the inheritance?
Very quick. The first important deadline is only 6 weeks to accept or refuse the inheritance. After that, there is a 3-month deadline to report to the tax office.
What costs will I incur immediately?
Immediately after the inheritance occurs, costs may be incurred for applying for a certificate of inheritance (depending on the value of the estate) or for renunciation (at least 30 euros). Ongoing costs associated with the property, such as property tax and insurance, must also continue to be paid.
What is an inheritance community?
An inheritance community is automatically formed when there are multiple heirs. All decisions regarding the property, such as sale or rental, must then be made unanimously by all co-heirs.
When is it worth selling an inherited house?
A sale is often the simplest solution, especially in an heirs' community, to avoid disputes and fairly distribute the proceeds. It is most tax-efficient if the 10-year speculation period has expired.
How can Auctoa help me with an inherited house?
Auctoa provides a fast, AI-powered, and unbiased property valuation. This data-driven analysis helps you understand the true market value and make an informed decision about selling, renting, or personal use, free from real estate agent interests.
Do I need to have the house assessed for the land register correction?
No, an appraisal is not required for the correction itself. However, if you miss the two-year period for a free transfer, the fees will be calculated based on the market value estimated by the authority.
