Inheriting a house

Get quotes from Real estate agents near the property

What are the options when inheriting a home?

Have you decided to accept the inheritance that includes property? If so, it's time to determine what you want to do with the house. You have several options, depending on whether you are the only heir or if there are multiple heirs.

Are you the only heir? If you are the only heir, you have three options: You can live in the house, rent the property, or sell the property.

Are there multiple heirs? If there are multiple heirs, you must decide together what to do with the property. One of you could choose to live in the house and buy out the other heirs. Alternatively, you could sell the house and divide the proceeds among yourselves.

What happens to an outstanding mortgage debt?

If you have accepted the inheritance unconditionally (zuiver aanvaarden), you are also responsible for any debts, including an outstanding mortgage. If there is still mortgage debt on the property, first check if a life insurance policy is linked to the mortgage. If the insurance pays out, you may be able to fully or partially pay off the mortgage.

If you have accepted the inheritance under benefit of inventory (beneficiair aanvaarden), you are not liable for any outstanding mortgage debt.

Selling an inherited property

If you choose to sell the property, it's best to do so within 8 months after death. After 8 months, you'll need to pay inheritance tax on the property, which will then be considered part of your assets. If the proceeds from the sale are not yet in your account by that time, this could cause financial difficulties. It may also affect any government benefits or allowances you receive.

The regular costs—such as municipal taxes, energy bills, and insurance—must still be paid before the house is sold. Be sure to account for these ongoing expenses.

Looking to sell quickly? We're here to help

Want to sell the property as quickly as possible? That's understandable. In our article on selling your home quickly, you'll find valuable tips to help you through the process.

Pro tip: A good real estate agent is half the battle. They can guide you through the entire process and handle much of the work on your behalf.

Haven't found the right real estate agent yet, or simply haven't had the time to look for one? We're here to help. Enter your postal code and house number below to register your property with Mijn Verkoopmakelaar. It's completely free and without obligation. The best real estate agents in your area will send you their proposals. You can decide for yourself whether and with whom to proceed.

Learn more about how Mijn Verkoopmakelaar works or get in touch with us.

Requesting an extension for paying inheritance tax

Is the property still for sale 8 months after the date of death? If so, you can request an extension to pay inheritance tax. A one-year extension is typically granted if the tax assessment is less than €50,000. For evaluations exceeding €50,000 (and if the property is for sale), the bank usually grants an extension only if you provide additional security, such as a bank guarantee or mortgage rights.

(Temporarily) renting out an inherited property

Does it seem unlikely that the property will sell within 8 months? In that case, you might consider renting it out until it's sold. Alternatively, you could rent the property for a longer term.

This can generate interim income to cover ongoing expenses like taxes, utilities, and insurance. Another advantage is that the property remains in use, which usually positively affects its condition and any garden or outdoor spaces. Properties left vacant tend to deteriorate more quickly.

Renting out a property under the Vacancy Act

It's helpful to know about the Vacancy Act (Leegstandwet). You can use this option if you're struggling to sell your house and risk financial difficulties. Under the Vacancy Act, you can rent the property for up to 5 years, subject to specific conditions.

One critical condition is that the rental agreement can be terminated when the property is sold. The tenant must then vacate the property, allowing the new owner to take immediate possession.

Living in an inherited property

You usually have the option to live in the inherited property yourself. If there are multiple heirs, the person moving in must "buy out" the other heirs, providing them with their share of the property's value. Below, we explain how this process works.

Determining the property's value

The first step is to establish the value of the property. You'll decide how to determine this value with the other heirs. This can be done, for instance, through an appraisal report.

Note: Sometimes, the will specifies how the property's value must be determined. This value may differ from the WOZ value (the official property value used for tax purposes), which is used for the inheritance tax declaration.

Buying out other heirs

Once the property's value has been determined, the person living in the house must buy out the other heirs. This can be done using personal funds, but a mortgage can also be taken out.

It's worth noting that you typically cannot take over the deceased's mortgage (e.g., your parent's). Instead, you'll need to apply for a new mortgage in your name. Important: If the property is intended to be rented out, different mortgage criteria will apply, including higher interest rates and lower borrowing limits.

A usufructuary named in the will?

In most cases, the heirs can decide who will live in the house. However, there are exceptions. A will may specify that one heir is entitled to live in the property. This heir is granted the right of usufruct, meaning they can live in the house without becoming its owner.

A usufructuary does not have to compensate the actual owner(s) for living in the property.

In such cases, the other heirs hold bare ownership of the property. Although they are technically the property's owners, they cannot live in it nor sell, demolish, or give away the house.

Inheritance tax on a property

Unfortunately, inheriting a property often involves dealing with taxes. Almost always, at least—because if you sell the property within 8 months, you won't have to pay inheritance tax. Additionally, certain exemptions apply, meaning you might not have to pay inheritance tax. That's a bit of good news!

Inheritance tax must be declared within 8 months of the date of death. If the house has not yet been sold by then, it will be included in the calculation. If inheritance tax is owed, the payment is usually due approximately one year after death.

What is inheritance tax applied to?

Inheritance tax is calculated based on the total inheritance amount, including the property's value. The tax amount for the property is determined by subtracting any remaining mortgage debt from the WOZ value (official property valuation for tax purposes).

How much inheritance tax must be paid?

Whether you have to pay inheritance tax depends on your relationship with the deceased and the total value of the inheritance. Exemptions apply up to a certain amount, depending on your relationship with the deceased.

For example: In 2022, a spouse, registered partner, or cohabiting partner had an exemption up to €680,645. Children had an exemption of up to €21,559. You can check the current exemption amounts for inheritance tax.

If the value of the inheritance exceeds the exemption, inheritance tax is due on the amount above the exemption. The tax rate depends on your relationship with the deceased. Spouses and children generally pay a lower percentage than nieces, nephews, or unrelated heirs. A higher tax rate also applies to the portion of the inheritance (above the exemption) that exceeds a certain threshold. In 2022, this threshold was set at €130,424.

You can refer to the inheritance tax table for the applicable rates.

Partners are considered as one tax entity
It is important to note that if partners inherit from the same estate, the Dutch Tax Authority considers them a single entity for tax purposes. Be sure to account for this when calculating the total inheritance tax due.