Do I pay speculation tax when selling an inherited house?

Only if fewer than ten years lie between the purchase by the deceased person and your sale — and no own-use ground applies. If the purchase is longer ago, the sale is tax-free.

Does the period count from the inheritance or from the purchase?

From the purchase by the deceased person. The heirs step into their shoes (the stepping-into-the-shoes principle); the inheritance itself does not start a new ten-year period.

Is selling the parents’ own-occupied home tax-free?

Often yes. If the property was used for one’s own residential purposes — including by the deceased — the sale stays tax-free even within the period (section 23(1) no. 1 sentence 3 EStG). With vacancy or letting it must be checked more closely.

How does speculation tax differ from inheritance tax?

Inheritance tax attaches to the acquisition by reason of death and depends on the family relationship and allowances. Speculation tax concerns only the gain from a sale within the ten-year period. Both can, but need not, coincide.

Knowledge · Community of heirs & property

What tax does selling an inherited house cost?

On a sale, the so-called speculation tax only looms within a ten-year period — and for that period the deceased person’s purchase date usually counts, not the inheritance. Very often the sale is therefore tax-free.

As at: June 2026 · ← back to the guide

The answer first. Two taxes are often confused. Inheritance tax arises at the inheritance and depends on the family relationship and allowances — that is ordered by Tax deadlines in an inheritance. Speculation tax, by contrast, concerns only the gain from a sale within the ten-year period under section 23 EStG. For that period the heirs step into the shoes of the deceased: their acquisition date is decisive. If the purchase is more than ten years ago, the sale is tax-free.

Stepping into the shoes — an example

An inheritance is not itself a “purchase” in the tax sense — it is a gratuitous acquisition. So no new period begins with the inheritance. Instead, the heirs count the deceased person’s holding period — the so-called stepping-into-the-shoes principle.

An example without figures: the mother bought the house in 2008. She died in 2024, and three siblings inherited together. If they sell in 2025, the ten-year period — counted from 2008 — is long over. The sale is tax-free, however much the value has risen in the meantime. If instead the mother had bought only in 2020 and the heirs sell in 2025, the sale would fall within the period — then speculation tax may arise on the gain. So what counts is not the year of the inheritance, but the deceased’s year of purchase.

The exception: own use

Even within the ten-year period, a sale stays tax-free if the property was used for one’s own residential purposes — either throughout, or in the year of sale and the two preceding calendar years (section 23(1) no. 1 sentence 3 EStG). In an inheritance, use by the deceased person is counted in as well. So whoever inherits the family home in which the mother lived herself until the end can often sell tax-free, even if the period has not yet run out. If, by contrast, the house stood empty or was let, the exception does not apply automatically.

What else plays a part

If a community of heirs sells several properties in a short time, a commercial property trade may exceptionally be in play — a boundary that must be checked by an expert. The size of any gain, deductible costs and the handling of share sales by individual co-heirs likewise belong in the hands of a tax adviser. Our task is not to calculate the tax, but to make sure these questions are asked in good time — before a sale under time pressure creates facts. Which paths lead out of the community is set out under Buyout, takeover or sale.

Speculation period (Spekulationsfrist). The ten-year period under section 23 EStG: if a property is sold at a gain within ten years of acquisition, income tax may arise on it. After that, the sale is tax-free.

Stepping-into-the-shoes principle (Fußstapfentheorie). On a gratuitous acquisition, the heirs take over the deceased person’s acquisition data. For the speculation period their purchase date counts, not the inheritance.

This article provides orientation and does not replace tax or legal advice; in your individual case, those entitled to give it — a tax adviser, lawyer or notary — will clarify it.

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Tax deadlines in an inheritance

The inheritance-tax side: notice, return, allowances.

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Do I pay speculation tax when selling an inherited house?: Only if fewer than ten years lie between the purchase by the deceased person and your sale — and no own-use ground applies. If the purchase is longer ago, the sale is tax-free.
Does the period count from the inheritance or from the purchase?: From the purchase by the deceased person. The heirs step into their shoes (the stepping-into-the-shoes principle); the inheritance itself does not start a new ten-year period.
Is selling the parents’ own-occupied home tax-free?: Often yes. If the property was used for one’s own residential purposes — including by the deceased — the sale stays tax-free even within the period (section 23(1) no. 1 sentence 3 EStG). With vacancy or letting it must be checked more closely.
How does speculation tax differ from inheritance tax?: Inheritance tax attaches to the acquisition by reason of death and depends on the family relationship and allowances. Speculation tax concerns only the gain from a sale within the ten-year period. Both can, but need not, coincide.