Die Übertragung des Familienheims von Todes wegen auf ein Kind kann erbschaftsteuerfrei sein, sofern das Familienheim vom Kind unverzüglich für die nächsten 10 Jahre selbst genutzt wird.
Tax exemption up to 200 square metres of living space, land unlimited
The tax exemption is limited to 200 square metres of living space. However, the share of land transferred is exempt from inheritance tax without limitation. The Inheritance Tax Act does not impose any restrictions in this respect, meaning that 300 square metres or even 3,000 square metres may be exempt, depending on which parcels of land are assigned to the property in the land register.
What proportion of the property is appropriate?
The question of what constitutes an appropriate property area for tax exemption has not yet been addressed. The Lower Saxony Fiscal Court had to rule on this in a case dated 12 July 2023 - 3 K 14/23. In the judgement case, the father passed away and bequeathed the family home to his son. This consisted of a house with a living space of 235 square metres and a plot of land of more than 2,000 square metres. The property consisted of several neighbouring parcels of land, whereby the house stood on a designated parcel of land that only covered 837 square metres. The inheriting son moved into the house immediately and claimed a tax exemption for the family home in his inheritance tax return, taking into account the total area entered in the land register. This led to a tax exemption of around 1.2 million euros. In contrast, the tax office only wanted to exempt the portion of the land that corresponded to the parcel of land on which the building stood, so that the tax exemption only amounted to approx. 520,000 euros. In this respect, it is questionable whether the tax exemption only applies to the parcel of land on which the building stands or to the property as it is entered in the land register, or whether a special standard for inheritance tax should be applied completely independently of this.
Jürgen Lindauer
Director, Tax
KPMG AG Wirtschaftsprüfungsgesellschaft
For large properties, the cadastral division should be checked
Like the tax authorities, the tax court ruled that only the actually developed parcel of land is exempt from inheritance tax. However, an appeal to the Federal Fiscal Court has been authorised, as the question of which areas next to the building in a family home are exempt from inheritance tax has not yet been finally decided. In order to avoid any nasty surprises in the event of an inheritance, it is advisable to check the current areas and cadastral divisions of large properties with regard to their allocation to the building and to keep an eye on the upcoming decision of the Federal Fiscal Court.
