Have you inherited a property and are wondering what costs you might face? The greatest financial burden is often not the appraisal, but rather an unnecessarily high inheritance tax. This article shows you how a professional property valuation can save you thousands of euros.
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The topic briefly and concisely
The standardised property valuation by the tax office is often 15-20% above the actual market value, leading to excessive inheritance tax.
A market value appraisal costs between 0.5% and 1.5% of the property's value, but it is tax-deductible as an estate liability.
With a counter-opinion, heirs can legally reduce their tax burden by thousands of euros, as the tax office must acknowledge a proven lower value.
An inherited property is a significant asset, but the joy is often overshadowed by the looming inheritance tax. The tax office usually estimates your property's value on a flat rate and without inspection—often 15% to 20% too high. The result is an unnecessarily high tax demand. A professional appraisal is not a cost factor here but a strategic investment. It provides the real market value and can significantly reduce your tax burden. Learn how to not only deduct the costs of an appraiser for an inherited property for tax purposes but also use it as an effective tool to reduce your financial burden.
Why the tax office's assessment is often too high
The tax office usually determines the value of your inherited property using standardised methods, without an on-site inspection. Since 2023, these often include unfavourable assumptions that exceed the actual market value. Individual characteristics such as a backlog of repairs, an unfavourable layout, or construction defects are often disregarded. This blanket valuation can overestimate the value by 15-20%. An independent inheritance appraisal is often the only way to provide evidence of a realistic value. The Valuation Act (§ 198 BewG) explicitly allows you to use an expert's report to demonstrate a lower market value, thereby reducing your tax burden. This step is crucial as an overvaluation forms the basis for your entire tax calculation.
Types of reports and their typical cost structure
The costs for an expert appraisal in the event of an inheritance of a property depend on the scope of the valuation. You essentially have two options:
Short appraisal: This is a cost-effective initial orientation, starting at about 500 euros. However, it is generally not suitable for submission to tax authorities as it does not meet the formal requirements of a legally binding document.
Market value appraisal (full appraisal): This is the official document recognized by authorities and courts. The costs for such an appraisal start at around 2,000 euros and can rise to over 5,000 euros depending on the property's value. As a general rule, you can expect to pay about 0.5% to 1.5% of the property's value. Such an appraisal is 20-30 pages long and details all factors influencing the value comprehensively. Although the investment is higher, it is essential for tax recognition. The exact costs of a property appraisal depend on the complexity and value of the object.
Legal basis: How the JVEG regulates fees
While many assessors negotiate their fees freely, there is a legal basis for court-appointed experts: the Judicial Remuneration and Compensation Act (JVEG). This law sets the hourly rates for various fields. For the valuation of real estate and rights to real estate, Appendix 1 to the JVEG stipulates an hourly rate of 125 euros. This legal regulation ensures transparency when an expert opinion is required in the context of legal proceedings, such as in inheritance disputes. However, for purely tax-related dealings with the tax office, you typically engage a free, yet certified expert, whose fee is based on market value and effort. Knowledge of the JVEG helps you better assess the appropriateness of offers.
Case study: How an expert report can reduce your inheritance tax
The effect of an expert opinion is best illustrated with an example. Suppose the tax office sets the value of an inherited house at 700,000 euros. After deducting the allowance for a child (400,000 euros), 300,000 euros of taxable inheritance remains. At a tax rate of 15%, this would amount to 45,000 euros in inheritance tax. However, a surveyor commissioned by you identifies renovation needs and determines a realistic market value of only 580,000 euros. The tax base decreases to 180,000 euros, reducing the tax burden to 27,000 euros. You therefore save 18,000 euros in taxes, while the costs for the valuation report might have been around 4,000 euros. Unsure of how much you can save? The Auctoa inheritance tax calculator provides you with an initial indication.
Additional benefit: Deduct expert fees for tax purposes
A crucial point often overlooked: The costs for the market value appraisal are generally tax-deductible as an estate liability. This means you can deduct the appraiser's fee from the taxable estate. This not only reduces the tax base due to the lower property value but also through the cost of the appraisal itself. This significantly reduces the net investment in the appraisal. For example, appraiser costs of 4,000 euros with a tax rate of 15% lower the tax burden by an additional 600 euros. It is therefore always advisable to have the appraisal drawn up before the tax assessment becomes final. This ensures that all advantages are utilised to minimise the financial burden of the property inheritance.
Conclusion: The costs of an appraisal are an investment, not an expense
Dealing with the costs for an expert when inheriting property clearly shows: it is one of the most effective measures to avoid excessive inheritance tax. The tax office’s blanket assessment often does not reflect reality, especially for properties in need of renovation or with other devaluing factors. Investing 0.5% to 1.5% of the property's value in a professional valuation usually reimburses itself many times over through tax savings. If you are unsure whether this step is worthwhile for you, an initial analysis with tools like the Auctoa Inheritance Manager can provide clarity. Act proactively to secure your inheritance and only pay the tax that is truly due.
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Additional useful links
Wikipedia provides a general overview of inheritance tax in Germany.
The Federal Ministry of Finance offers official information on inheritance and gift tax.
The Taxpayers' Association points to a new official guide to inheritance tax available online.
The Hamburg Institute of International Economics (HWWI) analyses declining revenues from inheritance and gift tax.
The IHK Munich provides information on inheritance and gift tax specifically for businesses.
FAQ
How quickly do I need an expert opinion after an inheritance?
You should commission the expert opinion as soon as possible, ideally before submitting the inheritance tax return. After receiving the tax assessment notice, you have only a four-week period within which you can present a counter-opinion.
Which report is accepted by the tax office?
The tax office generally only accepts a so-called market value appraisal (or full appraisal) that has been prepared by a qualified, certified expert in accordance with the legal requirements of the Immobilienwertermittlungsverordnung (ImmoWertV).
What is the difference between a broker's valuation and an appraisal?
An agent's appraisal is often merely an estimate for sales purposes and does not carry any legal weight with tax authorities or in court. A market value appraisal is a detailed, legally recognised analysis based on standardised and comprehensible procedures.
Can an appraisal set the value higher than the tax office?
This is theoretically possible but very rare in practice. Tax offices use general, often outdated data, whereas a surveyor assesses the on-site condition, including any defects. A reputable surveyor will provide you with an initial assessment of whether a survey report would be worthwhile.
Is it worthwhile to get an appraisal for a property you use yourself?
Yes, especially in that case. If you use the property yourself and its value is under the tax exemption limits, you may not have to pay any tax. However, if the value is slightly above, an appraisal could potentially reduce the value below the exemption threshold and completely avoid the tax.
How do I find a qualified surveyor?
Look for certifications such as 'publicly appointed and sworn' (IHK) or certifications according to DIN EN ISO/IEC 17024. Platforms like Auctoa collaborate with a network of certified experts throughout Germany.
