Anyo\u00adne who is requi\u00adred to pay tax on an inhe\u00adri\u00adted plot of land has the opti\u00adon of decla\u00adring a value lower than that deter\u00admi\u00adned by the tax office. This is sub\u00adject to the pro\u00advi\u00adsi\u00adon of an expert\u2019s report sub\u00adstan\u00adtia\u00adting this lower mar\u00adket value. But what hap\u00adpens if the tax office or the court sim\u00adply dis\u00adre\u00adgards the valua\u00adti\u00adon report becau\u00adse the pro\u00adper\u00adty was sub\u00adse\u00adquent\u00adly sold for a hig\u00adher pri\u00adce? The Fede\u00adral Fis\u00adcal Court has drawn clear boun\u00adda\u00adries in this regard in its ruling of 4 August 2026 (Ref. II B 87\/25).<\/p>\n
An heir had inhe\u00adri\u00adted two mixed-use plots of land, the owner of which had died in May 2020. He had the plots valued by a publicly appoin\u00adted and sworn valuer. The expert deter\u00admi\u00adned values of 210,000 euros and 305,000 euros for the two pro\u00adper\u00adties. The tax office, howe\u00adver, appli\u00aded signi\u00adfi\u00adcant\u00adly hig\u00adher asses\u00adsed values of around 291,000 euros and 405,000 euros and dis\u00adre\u00adgard\u00aded the expert reports.<\/p>\n
The crux of the mat\u00adter: the heir sold the plots of land in Febru\u00adary 2021 for a total of 900,000 euros \u2013 a pri\u00adce con\u00adsider\u00ada\u00adb\u00adly hig\u00adher than the valua\u00adtions. Both the tax office and the D\u00fcs\u00adsel\u00addorf Finan\u00adce Court (jud\u00adge\u00adment of 27 Novem\u00adber 2025) regard\u00aded this as grounds for rejec\u00adting the valua\u00adtions in their enti\u00adre\u00adty. For the court, the mat\u00adter was thus settled.<\/p>\n
The Fede\u00adral Fis\u00adcal Court allo\u00adwed the appeal and cri\u00adti\u00adcis\u00aded the Fis\u00adcal Court\u2019s approach as con\u00adsti\u00adtu\u00adting a pro\u00adce\u00addu\u00adral error. A court may not reject a pro\u00adper\u00adly pre\u00adpared expert report across the board sim\u00adply becau\u00adse a sub\u00adse\u00adquent purcha\u00adse pri\u00adce tur\u00adned out to be hig\u00adher. Ins\u00adtead, the court must exami\u00adne the con\u00adtent of the report and pro\u00advi\u00adde spe\u00adci\u00adfic reasons as to why the expert\u2019s indi\u00advi\u00addu\u00adal valua\u00adti\u00adon methods are not convincing.<\/p>\n
In the pre\u00adsent case, the expert had taken into account defect and refur\u00adbish\u00adment cos\u00adts of 20,500 euros and 80,500 euros respec\u00adtively. The Finan\u00adce Court did not address the\u00adse spe\u00adci\u00adfic items at all. The Fede\u00adral Fis\u00adcal Court express\u00adly cri\u00adti\u00adcis\u00aded this.<\/p>\n
Under the Valua\u00adti\u00adon Act, an heir may demons\u00adtra\u00adte that the mar\u00adket value of a pro\u00adper\u00adty is lower if the value deter\u00admi\u00adned in accordance with the sta\u00adtu\u00adto\u00adry valua\u00adti\u00adon pro\u00adce\u00addu\u00adres is too high. In prin\u00adci\u00adple, they may pro\u00advi\u00adde such evi\u00addence by means of an expert\u2019s report. The report must be accept\u00aded if it is plau\u00adsi\u00adble and com\u00adpli\u00ades with the rele\u00advant valua\u00adti\u00adon regulations.<\/p>\n
It is important to note that, accor\u00adding to the clear wor\u00adding of the law, a later purcha\u00adse pri\u00adce may ser\u00adve as evi\u00addence of a lower mar\u00adket value, but only in one direc\u00adtion. A hig\u00adher purcha\u00adse pri\u00adce can\u00adnot be used to adjust the value of the pro\u00adper\u00adty upwards for inhe\u00adri\u00adtance tax pur\u00adpo\u00adses. The sta\u00adtu\u00adto\u00adry pro\u00advi\u00adsi\u00adon pro\u00adtects the tax\u00adpay\u00ader, not the tax authorities.<\/p>\n
The ruling streng\u00adthens the rights of heirs who wish to demons\u00adtra\u00adte a lower value for inhe\u00adri\u00adted land. Courts and tax aut\u00adho\u00adri\u00adties must give serious con\u00adside\u00adra\u00adti\u00adon to expert reports and must not dis\u00admiss them sim\u00adply by poin\u00adting to a hig\u00adher sub\u00adse\u00adquent sale price.<\/p>\n
Anyo\u00adne wis\u00adhing to decla\u00adre inhe\u00adri\u00adted pro\u00adper\u00adty at a lower value in their inhe\u00adri\u00adtance tax return should com\u00admis\u00adsi\u00adon a qua\u00adli\u00adfied valua\u00adti\u00adon report at an ear\u00adly stage. In the event of a dis\u00adpu\u00adte, it is worth see\u00adking legal or tax advice in order to con\u00adsis\u00adt\u00adent\u00adly assert one\u2019s rights.<\/p>\n