Inheritance Law · Inheritance Tax
Inheritance Tax & inherited property – using allowances wisely
Whether tax is due on an inheritance depends on the value of the estate and your relationship to the deceased. In Berlin in particular, high property values drive the tax burden – with the right allowances and exemptions you can save a lot.
I show you which allowances apply, when the family home stays tax-free and how inheritance tax can be lawfully reduced through forward-looking structuring.
Personal allowances (selection)
Above the allowance, a tax rate of 7% to 50% applies depending on the tax class. Allowances can be used again every 10 years for gifts.
Inherited property – what you should know
Family home can be tax-free
If the spouse or children inherit the owner-occupied family home and continue to use it themselves for at least 10 years, it remains tax-free – for children limited to 200 m² of living space.
Sale or rental
Anyone selling or renting out the inherited family home before the 10 years are up loses the exemption retroactively – unless there are compelling reasons.
Valuation is decisive
The tax office often applies flat market values. A qualified appraisal can significantly reduce the taxable value – and thus the tax.
How inheritance tax can be lawfully reduced
- Use allowances again every 10 years through lifetime gifts.
- Transfer the family home tax-free to spouse or children.
- Use usufruct and right-of-residence reservations strategically.
- Critically review the property valuation (appraisal).
Note: This information does not replace tax advice in individual cases. For detailed tax questions I work together with tax advisors.
Frequently asked questions about inheritance tax
How high is the inheritance tax allowance?
The allowance depends on the degree of kinship: spouses €500,000, children €400,000, grandchildren €200,000, siblings and other heirs €20,000. Only the amount above the allowance is taxed.
Do I have to pay tax on an inherited house?
Not necessarily. The owner-occupied family home remains tax-free for spouses and children if it continues to be self-used for at least 10 years (for children up to 200 m²). Otherwise the property value counts as a taxable acquisition.
How can I save inheritance tax?
Above all through forward-looking structuring: use allowances via gifts every 10 years, transfer the family home tax-free, reserve usufruct and have the property valuation reviewed critically.
When must inheritance tax be paid?
You must generally notify the tax office of the acquisition within three months. The tax office may then request an inheritance tax return. You should not miss the deadlines.
Inheritance tax on your property?
I give you clarity on allowances, exemptions and structuring options – especially for Berlin real estate.