Selling inherited property: What you need to know about taxes in 2026
Inheritance brings speed—and tax issues. This guide shows you the relevant tax types, deadlines, and adjustments for a smooth sale in 2026.
An inheritance rarely feels like "perfect timing." And yet you have to make quick decisions: keep, rent, or sell the inherited property. In 2026, those who know the tax rules will sell with greater peace of mind, negotiate more clearly, and reduce unnecessary risks.
When selling an inherited property, three issues are typically relevant for tax purposes: inheritance tax (incurred upon acquisition), capital gains tax pursuant to Section 23 of the German Income Tax Act (may be incurred upon subsequent sale), and in certain cases, real estate transfer tax (usually payable by the buyer, not you). Important: The speculation period does not start afresh with the inheritance. You follow in the footsteps of the deceased. The decisive factor is therefore when the deceased purchased the property and whether it was used for their own purposes.
For 2026, the following practical guideline applies: If you or the testator lived in the property yourself in the year of sale and in the two years prior to that, the sale is generally exempt from income tax – details depend on the individual case. For rented properties, the 10-year period becomes the key factor. In addition, there are deadlines from the estate (land register, distribution of the estate) and clear evidence of acquisition costs, modernizations, and depreciation.
If you would like guidance, Supanz-Immobilien will discreetly structure the sale, coordinate documents, and work with your tax advisor if necessary. If you are interested, please write or call us.
The inheritance sets the pace – taxes determine the net proceeds
What matters now: clear documentation, realistic valuation, reliable timeline. And a tax check before you sign.
When someone passes away, "sometime" suddenly becomes "now." You sort through keys, documents, memories—and the clock is ticking: land registry, certificate of inheritance, co-heirs, insurance policies, running costs. In this phase, it is not only the sale price that matters. What is decisive is what remains net at the end. And in 2026, that will depend heavily on which tax applies, which deadlines are met, and how clearly the facts are documented.
Our advice: lay the foundation first, then make the deal. That means: valuation based on market realism (not wishful thinking), a reliable timeline for marketing and handover, and a tax check before signing. Especially with inherited real estate, documentation is often the bottleneck: the date of acquisition by the deceased, personal use, modernizations, rental periods, depreciation. The clearer these points are, the clearer your negotiating position will be—and the lower the risk that a supposedly good price will later be "eaten up" by taxes.
If you want to hand over the work: Supanz-Immobilien discreetly structures the process, coordinates the documents, and, if desired, consults with your tax advisor. If you are interested, write or call us.
Which taxes will actually apply in 2026 when selling inherited property?
Inheritance tax is not automatically sales tax. The decisive factors are the type of tax, the holding period, the use—and who is selling.
If you sell an inherited property in 2026, the first thing to consider is a clear separation: inheritance tax applies to acquisitions through inheritance. The sale of real estate, on the other hand, may or may not trigger income tax – specifically, speculation tax (Section 23 of the Income Tax Act). The typical mistake is to pay inheritance tax and then be surprised that the sale may still be relevant for tax purposes.
In practice, there are three main criteria that apply to the sale. First: holding period. For the 10-year period, it is usually not the date of inheritance that counts, but the date on which the deceased acquired the property. Second: use. Owner-occupancy (in the year of sale and the two years prior) can keep the sale income tax-free, depending on the individual case; renting out the property can trigger the speculation test. Third: who is selling. Are you selling alone, as a community of heirs, or after a settlement? This changes the procedures, evidence, and timing—and thus often also the risk of tax friction losses.
Our clear advice: Before you finalize the deal, clarify the data situation (purchase, use, modernizations, rental periods) and consult with your tax advisor. Supanz-Immobilien provides you with the structure, the documentation logic, and a realistic timeline—discreetly and without fanfare. If you are interested, write or call us.
Inheritance tax vs. sale: two levels, two timelines
When inheritance tax arises, what role the value of the property plays, and why selling it does not "undo" anything.
First, the clear distinction: inheritance tax arises from acquisition due to death —i.e., at the moment when you legally acquire the property. The subsequent sale is a separate issue and may (depending on the holding period, use, and structure) be relevant for income tax purposes—but this is not necessarily the case. This distinction is crucial in 2026 because many owners think, "If I sell quickly, the tax issue will be resolved." This is not the case. You are merely changing the level.
Why the property value is so important: For inheritance tax purposes, the tax value of the land or apartment according to the valuation rules (typically: comparative value, income value, or asset value methods) is what counts. This value may differ from the sale price achievable on the market. A sale does not automatically make the assessed value "wrong" – it is at most an indication and must be properly classified in each individual case with your tax advisor. In practical terms, this means that you need clarity early on about value, allowances, deadlines, and the question of who is actually allowed to sell (sole heir vs. community of heirs).
Our approach in practice: We first establish the timeline (estate, land register, powers of attorney, co-heirs) and then the marketing. This reduces friction losses, keeps the net proceeds in view, and avoids hectic decisions. If you are interested, please write or call us.
Speculation tax (Section 23 EStG): Clearly classifying the 10-year period
How the testator's holding period counts, when profits can be tax-free, and which cases will often be expensive in 2026.
Speculation tax is not about "feelings" but about data. Basic rule 2026: A profit from the sale of an inherited property may be subject to income tax as a private sale transaction under Section 23 of the Income Tax Act (EStG) if less than ten years have elapsed between the acquisition and the sale. The decisive point in the case of inheritance: As a rule, the period does not start anew on the date of inheritance. You follow in the footsteps of the deceased for tax purposes. The date of acquisition by the deceased is therefore often decisive (typically: notarial contract/transfer of benefits and encumbrances).
The sale may be tax-free, in particular, if the 10-year period has already expired or if the property was used for own residential purposes in the year of sale and in the two years prior to that in accordance with the own-use rule (details depend on the individual case, e.g., in the case of vacancy, second home, or partial rental). In 2026, it will often be expensive for rented properties, for quick sales from the community of heirs, and wherever evidence is lacking: acquisition costs, subsequent production costs/modernizations, depreciation, rental periods. It is precisely these documents that determine how high a possible taxable profit will be.
Our practical tip: Clarify the deadline logic before price negotiations and have the data checked by your tax advisor. Supanz-Immobilien brings structure to documents, timelines, and marketing—discreetly, quickly, and without fanfare. If you are interested, write or call us.
