There are a number of tax conditions that are important for the safe sale of your inherited property. Depending on the individual case, both inheritance tax and speculation tax may be payable on an inheritance. In this area, the value of your property, the family relationship and the timing of the sale are particularly important. Tax advisors can help you avoid financial disadvantages through early tax classification.
Inheritance tax
Even if you have only accepted a share of the inheritance and wish to sell it, inheritance tax may be payable on real estate. Regardless of the sale, the amount of this tax depends on the value of the inheritance and the degree of kinship of the heirs. However, if you are within certain tax-free amounts, you do not have to pay tax.
Allowances according to relationship:
Tax class I
- Spouses and registered partners: €500,000
- Children, stepchildren, adopted children, children of deceased children: €400,000
- Grandchildren: €200,000
- Parents, grandparents, great-grandparents, great-grandchildren: €100,000
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Tax class II
- Siblings, children of siblings: €20,000
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Tax class III
- All other heirs: € 20,000
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When you sell your inherited house or apartment, the final inheritance tax is only payable on the part of the inheritance that exceeds your tax-free amount. The final tax rate again depends on the value of your inheritance after deduction of the tax-free amount and the tax bracket.
For amounts up to €75,000, the tax rates for tax classes I, II and III are 7, 15 and 30 percent respectively. These tax rates increase for higher amounts and reach a maximum of 30, 43 and 50 percent in the three respective tax brackets.
The speculation tax
If you sell your inherited property, you should also check whether speculation tax is due on the inheritance. This is often the case if there are less than ten years between the inheritance and the sale of the property and it was not owner-occupied. The decisive factor here is not the date of inheritance, but the original acquisition by the deceased person. This means that the ten-year period does not start anew with the inheritance! Instead, the date of the notarized purchase agreement at which the deceased purchased the property counts.
Also, if you sell an inherited property that is located in Munich and has been used by you or your children in the three years prior to the sale, speculation tax is generally not applicable. Otherwise, the tax payable is calculated from the difference between the original purchase price and the sale price.
