Inherited real estate – what happens first?
Upon the death of the deceased, ownership of the property automatically passes to the heirs – without any separate transfer act. However, the land register must be corrected. As an heir, you are obliged to apply for this correction. The good news: within two years of the inheritance, the correction is free of charge.
⚠️ Without land register correction, you cannot sell or mortgage the house. Apply for the correction as early as possible!
What options do you have with the inherited house?
- Move in yourself – may be inheritance tax-free if used as primary residence
- Rent out – rental income is subject to income tax
- Sell – possible speculation tax if less than 10 years between acquisition and sale
What must you do immediately?
- Obtain a certificate of inheritance (or provide notarial will with opening protocol)
- Apply for land register correction – free within 2 years
- Review ongoing contracts (utilities, insurance, tenancy agreements)
- Enquire about mortgages and debts at the land registry
- Submit inheritance tax return within the deadline (3 months after knowledge)
Inheritance tax on real estate
Spouse: €500,000 | Children: €400,000 | Grandchildren: €200,000 | Siblings/others: €20,000
If the property value exceeds the tax-free allowance, inheritance tax of 7–50% applies depending on the tax class. The owner-occupied family home may be completely tax-exempt under certain conditions.