Inherited Property in Berlin and Brandenburg: What Heirs Need to Know Now
Inheritance Tax Under Review in Karlsruhe
On 12 and 13 October 2026, Germany's Federal Constitutional Court is hearing two cases on inheritance tax. Bavaria is challenging, among other things, the tax-free allowances, the tax rates and the valuation of real estate. A ruling is not expected before late 2026 or early 2027. Until then, current law applies. The proceedings matter to owners in Berlin and Brandenburg because the allowances do not reflect the sharp regional rise in property prices.
Anyone who has inherited a property faces important decisions: keep it, rent it out or sell it? In Berlin-Pankow, Barnim and Oberhavel in particular, property values have risen considerably in recent years. The inheritance tax allowances, by contrast, have remained unchanged since 2009: 500,000 euros for spouses, 400,000 euros for children per parent and 200,000 euros for grandchildren. Many heirs therefore ask whether and when selling a property makes sense and which taxes may apply.
Inheritance Tax and the Family Home
An owner-occupied family home can remain tax-free if the surviving spouse inherits it and lives in it for at least ten years. Children benefit from this rule under the same ten-year condition, but only up to 200 square metres of living space. The tax is based on the property value determined by the tax office using statutory methods. A sound property valuation helps you assess this value realistically. Heirs must notify the responsible tax office of the inheritance within three months.
Selling an Inherited Property: Mind the Deadlines
When selling, heirs take over the deceased's ten-year holding period. If the original purchase was more than ten years ago, the capital gain is generally tax-free. In communities of heirs, all parties should agree early on a realistic market value and a joint strategy for selling the house, apartment or plot. Running costs, necessary renovations and the requirements of the Building Energy Act (GEG) should also be factored into the decision.
Tip from Your Real Estate Agent
Have the market value of an inherited property professionally assessed early, before deciding whether to sell or rent. A well-founded assessment provides clarity for the tax return and for discussions within the family. Our real estate agents in Berlin-Pankow and Wandlitz offer personal, no-obligation advice on selling property in Pankow, Barnim and Oberhavel. We support you from the first conversation through the valuation to the notary appointment. Please clarify individual tax questions with your tax advisor.