Financial Calculator
Inheritance Tax Calculator
Determining the value of farmland after inheritance
Have you inherited farmland and are wondering about its actual value? An incorrect assessment can quickly cost you over 10,000 euros in taxes or lost revenue. This guide shows you in 5 clear steps how to accurately determine the value and protect your financial interests.
With access to Google, BORIS, and Deep Research.
The standard land value determined by the tax office is only an initial indication and can deviate from the actual market value by up to 30%.
The comparative value method, based on real sales, is the most accurate valuation method for over 90% of farmland.
An independent appraisal can reduce the inheritance tax burden by 15-25% and is crucial in disputes with the tax office or among heirs.
The inheritance of farmland presents many heirs with a complex task: How can the exact value of farmland be determined after inheritance? This question is crucial, as the value assessed by the tax office is often just an initial estimate and can deviate by 20% or more from the real market value. An accurate valuation not only protects you from excessive inheritance tax but also ensures a fair distribution within the community of heirs and lays the foundation for an informed sales decision. With the right strategy, you convert uncertainty into a clear, data-driven advantage and maximise the financial return on your inheritance.
The first indication of the value of your inherited farmland is the standard land value set by the expert committees every two years. You can view this value free of charge for each federal state on the online portal BORIS-D. The tax office uses this average value as the basis for the inheritance tax assessment notice. However, this value alone can deviate by up to 30% from the actual market value. Factors such as an existing lease agreement or below-average soil quality are often not considered here. Uncritically adopting this value can therefore lead to an incorrect tax burden of several thousand euros. A more detailed analysis is thus the next logical step.
For 90% of undeveloped agricultural land, the comparative value method is the most precise way to determine value. In this process, actual sale prices of properties sold in the region over the last 1-2 years are used. It is crucial that the comparable properties match in key characteristics. An expert evaluates at least three to five comparable transactions. The key question is how your property fares in direct comparison, which requires a detailed consideration of the value-determining factors. A professional assessment of agricultural land is essential here. This turns an average value into an individual and market-appropriate evaluation.
The final value of your farmland depends on at least four key factors that go beyond the standard soil value. A precise analysis of these points can increase or decrease the value by over 50%. The following aspects are crucial:
Soil Quality (Farmland Value): The quality of the soil, expressed in the farmland or soil value (scale from 7-100), is the most important factor. Areas with a farmland value of over 60 are considered very good and fetch top prices.
Location and Configuration: Proximity to markets and good transport connections can increase the price by 10-15%. Large, contiguous areas are also much more in demand than small, fragmented plots.
Existing Lease Agreements: Long-term lease agreements with terms of over 10 years can reduce the market value, as they limit flexible use or a quick sale.
Development Potential: The greatest increase in value of over 1,000% occurs when farmland is classified as land for development. This often happens in locations on the edge of settlement areas.
This detailed analysis forms the basis for any informed evaluation of land factors.
For inheritance tax, it is crucial whether the tax office classifies your farmland as purely private assets or as part of an agricultural business. This distinction has significant financial consequences. If the land belongs to an active business, you can benefit from substantial tax advantages (exemption rules) that can reduce the tax burden by 85% or even 100%. However, you must continue the business for at least five to seven years. If the farmland is classified as private assets, only the general allowances apply – for children, for example, 400,000 euros. Any sale within 15 years can also trigger a revaluation by the tax office. Therefore, a thorough examination of the land valuation upon inheritance is essential to avoid costly back payments.
If you have doubts about the tax office's assessment or there are differing price expectations within the group of heirs, an independent market value appraisal is the best solution. The costs for such an appraisal typically range between 0.5% and 1.5% of the property's value, but the investment often pays off. A qualified appraisal can reduce the tax burden by an average of 15-25%. It provides an indisputable, data-based foundation for negotiations with the tax office and creates peace among the heirs. Modern, AI-supported evaluations like Auctoa ImmoGPT can give you a well-founded initial assessment within 24 hours, indicating whether a formal appraisal is worthwhile. The role of an appraisal in inheritance should never be underestimated.
Determining the value of farmland after an inheritance is more than just a formal duty – it’s a strategic necessity. Instead of relying on the standard land assessment value from the tax office, which can quickly lead to 20-30% higher taxes, a proactive and detailed analysis allows you to protect your financial interests. By understanding the valuation methods and key value drivers, you secure fair taxation and a strong negotiating position. A data-driven evaluation is your most reliable compass in the complex process of settling an inheritance.
Das Online-Portal BORIS-D provides comprehensive information on standard land values, essential for property valuation.
The Federal Statistical Office (Destatis) offers detailed tables on purchase values for plots, which are part of the property price index.
The BMEL Statistics provides up-to-date data on lease prices and purchase values of agricultural enterprises.
The Federal Ministry of Finance provides information on the valuation of agricultural and forestry assets in the context of property tax.
The Federal Ministry of Finance offers insights into the valuation of agricultural and forestry assets for inheritance tax.
Landwirtschaft.de sheds light on the causes of rising farmland prices in an article.
Wikipedia offers a basic definition and general information on the topic of farmland.
How do I quickly and reliably determine the value of inherited farmland?
For an initial quick assessment, you can check the land value in the BORIS-D portal. For an accurate valuation that is reliable for the tax office, it is advisable to carry out a data-supported analysis by experts such as Auctoa or to obtain a formal appraisal that determines the actual market value based on comparable sales and individual factors.
Do I have to accept the tax office’s valuation?
No. You have the right to demonstrate a lower market value through your own expert appraisal. If this proof is provided, the tax office must generally use the lower value for calculating inheritance tax.
What is the difference between market value and land value?
The land value is an average locational value for a zone with similar plots. The market value is the specific price that could be achieved for your specific plot, taking into account all individual characteristics such as soil quality, layout, and lease agreements.
What role do lease agreements play in the valuation?
Long-term lease agreements, particularly with low lease rates, can reduce the market value. They limit the owner's control and make the land less attractive to potential buyers who wish to farm it themselves. Conversely, an expiring contract can be an opportunity for renegotiation and increasing the value.
What happens if the farmland is considered to be development land?
If a municipality plans to designate farmland as building land in the future, the value increases enormously. The price can multiply tenfold or more. This must definitely be considered in the valuation, as there is enormous financial potential here.
How can Auctoa help in the valuation?
Auctoa offers AI-supported property valuations that quickly provide you with a data-driven and objective assessment of market value. With our ImmoGPT, you can clarify initial questions and receive a solid foundation to decide whether an expensive, time-consuming appraisal is necessary or if our analysis already meets your needs.
