I have inherited a property – what do I need to bear in mind?
What do I need to do immediately after the inheritance?
Certificate of inheritance & land register
Apply promptly for the certificate of inheritance (Erbschein) at the probate court. It serves as proof for correcting the land register. Within two years the land register change is free of charge.
Insurance cover
Inform the building insurer about the inheritance and check whether cover continues during vacancy. Set the heating to frost protection and secure the keys.
A death has occurred. Before you think about selling, letting or moving in yourself, three things have to happen. You will find a comprehensive guide to selling a property in Dresden in our guide section.
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Apply for the certificate of inheritance Without a certificate of inheritance you cannot sell the property. The application goes to the probate court — in Dresden, the Amtsgericht Dresden, Lothringer Straße 1. Processing time: four to eight weeks, sometimes longer. Cost: depending on the value of the estate, around €800–1,200 for a property worth €300,000. If there is a notarised will, the certificate of inheritance may not be necessary — check this with a notary.
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Have the land register corrected The heir must be entered as the new owner in the land register. This is free of charge within two years of the inheritance arising. After that, fees apply. My advice: do it straight away, don't put it off.
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Secure the property Keep the heating running (frost protection!), check the insurance, secure the keys. A vacant property carries risks — vandalism, water damage, loss of value. In Dresden I have seen cases where six months of vacancy caused €15,000 in knock-on costs.
Have you inherited a property and don't know how to proceed?
Discuss without obligationShould I sell, let out or live in the inherited property myself?
This decision depends on your personal life planning and your return expectations. An objective matrix helps you find your bearings:
Owner-occupation
- •Tax exemption after 10 years of residence
- •Emotional attachment
- •Mind the refurbishment costs
Letting
- •Long-term wealth building
- •Monthly cash flow
- •Effort as a landlord
Sale
- •Immediate liquidity
- •Division within a community of heirs
- •No more ongoing costs
This question cannot be answered in a blanket way. But there are clear criteria:
Sell, if:
- You cannot or do not want to use the property yourself
- The condition requires substantial investment you cannot afford
- The inheritance tax has to be financed from the estate
- Several heirs are involved and there is no agreement on its use
Let, if:
- The property is in good condition
- The location promises a solid return (in Dresden, from 4 percent net rental yield)
- You want to build wealth over the long term
- The inheritance tax can be financed in another way
Use yourself, if:
- The property suits your circumstances
- The location is right
- Important: with owner-occupation within 10 years of the inheritance arising, inheritance tax may be waived (the family-home rule for spouses and children, living space up to 200 m²)
What suits you — selling, letting or living there yourself?
Answer 5 short questions to get an initial orientation.
1. How far is your current home from the inherited property?
How high is the inheritance tax on an inherited property?
| Degree of kinship | Tax-free allowance | Tax class |
|---|---|---|
| Spouse / civil partner | 500.000 € | Class I |
| Children / grandchildren | 400.000 € / 200.000 € | Class I |
| Siblings / nephews | 20.000 € | Class II |
Inheritance tax is often the biggest worry — and at the same time the most misunderstood topic.
Tax-free allowances:
- Spouses: €500,000
- Children: €400,000
- Grandchildren: €200,000
- Siblings, nieces, nephews: €20,000
Tax classes and rates:
- Tax class I (spouses, children): 7–30 percent, depending on the value above the allowance
- Tax class II (siblings, nephews): 15–43 percent
- Tax class III (non-relatives): 30–50 percent
Valuation by the tax office: The tax office values the property independently — and often comes out above the actual market value. You have the right to submit a counter-valuation. In Dresden I have seen cases where the tax authority valued a flat at €320,000 that actually sold for €265,000. The appraisal saved the heir €8,500 in tax. An effort that almost always pays off.
What many people don't know: since the amendment of the Valuation Act in 2023, the tax office's calculation method has changed. The valuation often comes out higher than before. Scrutinise the assessment carefully.
Inheritance Tax Calculator
Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.
Do I have to pay speculation tax if I sell the inherited property?
The 10-year period under §23 EStG does not begin when the inheritance arises, but with the deceased's date of purchase. If your mother bought the flat in 2014 and you inherit it in 2026, the sale is tax-free immediately — the period expired long ago.
If the deceased only bought the property in 2020, the period runs until 2030. A sale before 2030 would be taxable — the gain (sale price minus the original purchase price minus incidental costs) is taxed at your personal income tax rate.
What do I do if several heirs are involved in the property?
A community of heirs arises automatically when several people inherit. And it is often the start of conflict.
The fundamental problem: all decisions require unanimity. One heir wants to sell, another wants to keep it, the third wants to "wait and see for now". Without agreement, nothing happens — except that the property loses time, costs accumulate and the value falls.
A neutral third party — an estate agent or mediator — can help resolve the situation. In my experience, communities of heirs fail not over the figures but over the communication. When everyone involved has an honest valuation in front of them, a way is almost always found.
If no agreement is possible, the last resort is a partition auction. Any co-heir can apply for it. But be careful: partition auctions usually achieve 20–30 percent below market value. No one really wins.
How do I assess the condition of the inherited property realistically?
Deferred maintenance: many inherited properties in Dresden date from the Gründerzeit or the GDR era. Roof, heating, windows, electrics — the typical problem areas. Before you invest, have the condition professionally assessed. Not every renovation raises the sale price proportionally.
Clearance: a fully furnished household of a deceased relative is emotionally demanding. There are specialist clearance firms in Dresden that work sensitively and professionally. Cost: €2,000–5,000 for a flat, €5,000–10,000 for a house. The effort pays off — a cleared property sells considerably better and faster.
Valuation: do not derive the value from the tax office's assessment. As a first reference point, our free property value calculator for Dresden offers a quick estimate — anonymous, no contact details. For a legally robust basis, an independent appraisal or a well-founded market assessment by a local estate agent is advisable.
How does selling an inherited property in Dresden work?
- Complete the certificate of inheritance and the land register correction
- Document and have the condition of the property valued
- Clarify the tax situation (inheritance tax, speculation tax)
- Compile the documents: certificate of inheritance, land register extract, energy certificate, floor plans, and the declaration of division where applicable
- Set the marketing strategy: "as seen" or after cosmetic preparation?
- Professional marketing: brochure, portals, and discreet marketing where appropriate
- Viewings and negotiation
- Notary appointment and handover
What documents do I need to sell an inherited property?
- Certificate of inheritance or a notarised will with the opening record
- Land register extract (current, with the heir entered)
- Energy certificate (mandatory since 2014 for every sale)
- Floor plan and living-space calculation
- For condominiums: declaration of division, owners' association minutes, business plan, service-charge statement
- Listed-building certificate where applicable
- Most recent incidental-cost statements (if let: tenancy agreement, tenant list)
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