Determining the real estate value – what the tax office sets
For inheritance or gifting of a property, the tax office does not use the purchase price, but its own tax value: the real estate value. It can significantly deviate from the actual market value.
What the real estate value is
The real estate value is determined according to the Valuation Act (Bewertungsgesetz) and serves as the basis for calculating inheritance and gift tax. It is not to be confused with the property tax value (Grundsteuerwert), which has been used for property tax since the property tax reform.
How the tax office calculates
For condominiums and detached or semi-detached houses, the comparative value method (Vergleichswertverfahren) is usually used, provided comparable data is available. Otherwise, the cost value method (Sachwertverfahren) applies. Rental residential properties are valued using the income capitalisation method (Ertragswertverfahren). The basis includes, among other things, standard land values (Bodenrichtwerte) and data from the expert committees (Gutachterausschüsse).
If the value is too high
Because the procedure is standardised, individual defects often remain unconsidered. Owners can prove a lower fair market value through a market value appraisal (Verkehrswertgutachten) by a qualified expert or through a recent sale price. The objection period is generally one month after the notification of the decision.
Keep exemptions in mind
Whether any tax is incurred at all depends on personal exemptions – for example, 500.000 Euro for spouses and 400.000 Euro for children. For a binding calculation, you should consult a tax advisor. We determine the realistic market value free of charge.