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🎁 Inheriting or gifting property

Inheriting or being given property affects inheritance tax, compulsory share and real estate transfer tax. Allowances and deadlines are important.

inheritance gift inheritance tax tax allowance family home (Familienheim) compulsory share (Pflichtteil) ten-year period

In brief

Anyone who inherits property or is given it must notify the tax office (Finanzamt) within three months of learning of it.

Allowances: spouse €500,000, children €400,000, grandchildren €200,000. Acquisitions from the same person within ten years are added together.

For the family home (Familienheim) the tax may not apply if you live in it yourself, for children up to 200 square metres of living space. You must use it for ten years.

Real estate transfer tax is normally not due on inheritance and gifts.

Step by step

  1. Notify the acquisitionNotify the tax office of the acquisition within three months.
  2. Check allowancesCheck the degree of kinship, allowance and earlier gifts of the last ten years.
  3. Clarify the family homeCheck whether a tax exemption for the family home is possible.
  4. Get advice before a giftHave tax, compulsory share and the notarial contract reviewed.

Deadlines

3 months
Notification of a taxable acquisition to the tax office after becoming aware of it§ 30 Abs. 1 ErbStG
10 years
Adding together acquisitions from the same person§ 14 Abs. 1 ErbStG
10 years
Supplementary compulsory share: a gift no longer counts after ten years (tapering by one tenth per year; for spouses the period starts only on dissolution of the marriage)§ 2325 Abs. 3 BGB
10 years of own use
Family home: the exemption lapses retroactively if own use is given up§ 13 Abs. 1 Nr. 4b, 4c ErbStG
Watch out – common mistakes
  • Valuation of property for tax is complex; not covered here.
  • Family home: children are exempt only up to 200 square metres of living space.
  • Notarial recording is required when gifting land (§ 311b BGB, see the purchase contract page).
  • Gifts can trigger compulsory share claims.
In depth · legal basis, figures and practice – for advisers and professionals

Allowances (§ 16 Abs. 1 ErbStG)

Spouse and civil partner €500,000; children and children of deceased children €400,000; grandchildren €200,000; other persons in tax class I €100,000; persons in tax classes II and III €20,000 (according to the text retrieved; check individual cases in the law).

Adding together and notification

§ 14 Abs. 1 ErbStG: several financial benefits received from the same person within ten years are added together. § 30 ErbStG: every taxable acquisition must be notified to the tax office within three months of becoming aware of the receipt or the obligation arising; for gifts, the donor is also obliged to notify.

Family home (§ 13 ErbStG)

No. 4b: acquisition of the family home on death by a spouse or civil partner is tax-free if the deceased lived in it themselves until death and the acquirer designates it without delay for own use; lapses retroactively if own use is given up within ten years, except for compelling reasons. No. 4c: the same for children and grandchildren, limited to 200 square metres of living space.

Compulsory share and real estate transfer tax

§ 2325 Abs. 3 BGB: gifts are taken into account in full in the first year before the inheritance, and one tenth less in each further year; after ten years they are disregarded; for gifts to a spouse the period does not begin before dissolution of the marriage. § 3 GrEStG: acquisition on death, gifts between living persons and transfers between persons in a direct line are exempt from real estate transfer tax.

Who is responsible
  • Finanzamt (inheritance and gift tax)
  • Notary
  • Nachlassgericht (probate court)
  • Lawyer or tax adviser
Further reading
Purchase incidental costs and real estate transfer taxPurchase contract, notary and land registerAdvice and contact points

Quick questions

Worum geht es bei „Inheriting or gifting property“?
Inheriting or being given property affects inheritance tax, compulsory share and real estate transfer tax. Allowances and deadlines are important.
Which deadlines and figures matter?
  • 3 months: Notification of a taxable acquisition to the tax office after becoming aware of it (§ 30 Abs. 1 ErbStG)
  • 10 years: Adding together acquisitions from the same person (§ 14 Abs. 1 ErbStG)
  • 10 years: Supplementary compulsory share: a gift no longer counts after ten years (tapering by one tenth per year; for spouses the period starts only on dissolution of the marriage) (§ 2325 Abs. 3 BGB)
  • 10 years of own use: Family home: the exemption lapses retroactively if own use is given up (§ 13 Abs. 1 Nr. 4b, 4c ErbStG)
What should I do first?
  • Notify the acquisition: Notify the tax office of the acquisition within three months.
  • Check allowances: Check the degree of kinship, allowance and earlier gifts of the last ten years.
  • Clarify the family home: Check whether a tax exemption for the family home is possible.
What do I need to watch out for?
  • Valuation of property for tax is complex; not covered here.
  • Family home: children are exempt only up to 200 square metres of living space.
  • Notarial recording is required when gifting land (§ 311b BGB, see the purchase contract page).
Evidence
  • ErbStG §§ 13, 14, 16, 30, gesetze-im-internet.de (erbstg_1974), retrieved 20 September 2026
  • BGB § 2325 Abs. 3, gesetze-im-internet.de, retrieved 20 September 2026
  • GrEStG § 3, gesetze-im-internet.de, retrieved 20 September 2026
As of

September 2026 · Sources and method

A question about your situation that this page does not answer? Write to us or use the contact form – we will tell you which office is responsible and what to bring. Free of charge, without individual legal advice.