Unlock the Value of Your Inherited Property in Berlin

Your tax advisor is certainly the best address for tax matters. In principle, inherited real estate is treated as other inherited assets.  The fact that your property is subject to inheritance tax does not necessarily mean that taxes will also be due. For the next of kin, allowances apply which are deducted from the determined value of the property. For first-order heirs, the allowances are currently EUR 500,000 for spouses, EUR 400,000 for each child and between 200,000 and 400,000 for grandchildren, depending on the situation. After the deductions, different tax rates apply to the surplus assets. Currently, this is 7 percent to the first 75,000 euros, 11 percent to the value of 75,000 to 300,000 euros and 15 percent to the value of 300,000 to 600,000 euros. We would be pleased to inform you in a personal conversation.

Please note: Our advice does not replace tax advice by a tax consultant. 

Inheriting a property can bring income, but also costs. There are completely different areas. If you have inherited your parents' house, it is primarily a matter of running costs for the house and the fees that arise in the course of the settlement of the inheritance. You will have to reckon with costs for the certificate of inheritance, which depend on the value of the property. There are also fees for the land registry cleanup, which are waived if you carry out the transfer within 2 years. If you have inherited a rented property, you as the new owner are responsible for the management costs and for existing obligations. If the property is managed by a property manager, you should be instructed about the economic situation. We will be happy to assist you with any questions you may have. 

If there is more than one heir, the heirs automatically form a community of heirs. The community of heirs is regulated in the German Civil Code (BGB) as a legal form. Communities of heirs often exist without conflict over long periods of time. If a co-heir, no matter how large his or her share in the inheritance is, demands dissolution, a settlement of the inheritance occurs. It is usually the wish of an heir to commercially exploit the property or his share of the inherited object. Moreover, if the heirs do not agree on the total value and the corresponding shares, there are often disputes that need to be settled in court. We clarify the market value of the inherited property at every stage of the dispute and also before a dispute. Often a division according to WEG can bring the solution. In this case, a divisible property is divided into residential property (flats). The heirs, who then each become owners in a community, can then decide freely and individually what to do with the respective co-ownership shares. Of course, there is always the possibility of global sales. This means that the property is sold as a whole and the proceeds are shared.

After division of the property, the "new" owners are free to dispose of their property. However, there is a lot to consider for heirs. Are there any outstanding claims? When allocating apartments resulting from a division, existing mortgages often have to be replaced.