DeutschYou have inherited a property and are now faced with the question of what to do next? It becomes particularly complicated if you did not inherit alone but are part of a community of heirs. In Austria, the sale of real estate within a community of heirs is subject to specific legal and tax rules you should be aware of. In this article you will find everything you need to know, written in plain language — from the legal framework to dealing with conflicting co-heirs to tax issues such as the Spekulationssteuer (real estate income tax). We also explain why an estate agent can be a genuine help, and we share practical tips to ensure the sale goes smoothly. Let's get started!
What is a community of heirs?
A community of heirs arises automatically when several people inherit an estate together — for example a house or a flat. All co-heirs hold an ideal share of the entire estate. This means: no one owns a specific room or a specific floor alone; instead, everyone has a share in everything.
In practice this means: all heirs must decide jointly about the inherited property. Under Austrian law (ABGB — General Civil Code), important decisions must be unanimous. A property can only be sold with the consent of all co-heirs — regardless of whether it is the family home, an inherited flat, or a piece of land. Until you agree, you remain joint owners in the land register and must manage the property collectively. This can quickly become difficult, especially with something as valuable and emotionally charged as real estate.
Good to know: Every member of the community of heirs has the same rights and obligations with regard to the inherited property. Unless a will states otherwise, the estate is divided equally. You are all in this together and share the responsibility — for example for ongoing costs such as property tax, insurance, and maintenance for as long as the property belongs to the community of heirs.Legal framework when selling real estate in a community of heirs
Unanimity is mandatory
For the sale of real estate in a community of heirs in Austria, one overriding principle applies: nothing can happen without agreement! Every co-heir must consent to the sale. It is not enough if, say, 3 out of 4 heirs want to sell — all four must say yes. This strict requirement is designed to ensure that no one is overruled. In practice, however, even a single dissenting heir can delay or block the process entirely.
If you are wondering: "Can't I just sell my share?" — Technically, you can sell your inheritance share (your portion of the entire estate) to someone else, for example to an external investor or to one of the co-heirs. But be aware: in that case the other heirs have a right of first refusal of two months to take over your share themselves on the same terms. And a partial sale does not resolve the underlying problem: the property still belongs to a community (just with a different composition). A single heir can therefore never sell an inherited property on their own.
What happens if a co-heir does not want to sell?
It is not uncommon for at least one co-heir to refuse to sell — whether out of emotional attachment ("That was grandpa's house, we are keeping it!"), hope of rising values, or a wish to move in themselves. In such a case, that person blocks the sale entirely. This can be frustrating, but there are several possible solutions when no agreement can be reached:
- Buying out a co-heir: If a co-heir wishes to take over the property and use it themselves, they can buy out the others. In this case, the person who wants to stay receives the equivalent of the other heirs' shares in cash and becomes the sole owner. Important: such a takeover agreement must be notarised where real estate is involved. Also check whether the person taking over can raise the necessary funds (or secure a loan).
- Consensual sale: If you manage to convince everyone to sell, this is usually the best course of action. When the community of heirs sells the property together, the proceeds are divided according to each person's inheritance share — and many conflicts simply disappear. Tip: commission a neutral estate agent to handle the sale. That way you have an objective professional on board who takes into account the interests of all parties and reduces mutual suspicion. No one needs to worry about another heir gaining an unfair advantage when an independent professional manages the sales process.
- Court-ordered partition (auction): The last resort — if there is complete deadlock, you can turn to the courts. Every co-heir has the right to bring a partition action to force the dissolution of the community. The court then orders an auction of the property (even against the will of the others). Important: in most cases the property is not broken up; the entire estate (or property) is converted into cash so it can be divided. This route is risky: at forced auctions, prices are often well below market value, and legal costs apply. A portion of your inherited wealth can be lost. Think carefully before taking this step. It is usually worth attempting an amicable agreement or mediation first.
- Mediation or legal advice: If you find yourself in a deadlock, an external mediator can help. This neutral third party attempts to work out a solution with all heirs before you resort to extreme measures such as court proceedings. Particularly when emotions run high — which happens easily after a bereavement — mediation can work wonders. Professional advice from a notary or solicitor can also be valuable to lay out all options and clear up misunderstandings. The situation often calms down considerably when outside professionals provide and moderate information.
Tax aspects: What taxes apply when selling an inherited property?
When it comes to taxes, inherited real estate can be complex — but do not worry, we will shed some light on it. The good news first: Austria has no inheritance tax on real estate; it was abolished in 2008. However, since 2016/2017, the property transfer tax (Grunderwerbsteuer) has effectively replaced inheritance tax for transfers within a family group. Here are the most important levies associated with selling an inherited property:
- Property transfer tax (Grunderwerbsteuer) upon inheritance: As soon as you inherit a property and are registered in the land register as the new owner, you pay Grunderwerbsteuer (GrESt) once. For acquisitions within a family group (inheritance, gift), staggered rates apply depending on value: for example 0.5% up to €250,000, 2% up to €400,000, and 3.5% above that. This tax is calculated on the assessed value of the property because there is no purchase price. The GrESt for an inheritance is usually significantly lower than for a regular purchase, but several thousand euros may still be due. This tax is typically settled as part of the probate process. Good to know: when you eventually sell the inherited house, the buyer pays the property transfer tax on the purchase — you as the seller do not pay it again at that point (you already paid it as the heir).
- How is the profit calculated? In simplified terms: sale price minus original acquisition cost (what the deceased paid at the time). Since you as the heir paid nothing yourself, the amount the deceased originally spent is carried forward. Example: if your father purchased the house in 2005 for €250,000 and you now sell it for €350,000, the profit is €100,000 — 30% real estate income tax is due on this, i.e. €30,000. This amount is deducted from the sale proceeds before the money is divided among the co-heirs. Do not worry: the notary or solicitor normally handles the tax payment automatically during the conveyancing process.
- Old properties (purchased before 2002): If the deceased acquired the property before 31 March 2002, a favourable flat-rate rule applies for tax purposes. In such cases, only 14% of the sale price is assumed to be profit, which effectively results in a tax of 4.2% of the sale price. This is why you sometimes hear people refer to a "4.2% tax" — because for so-called old properties a lower effective rate applies.
- Main residence exemption (Hauptwohnsitzbefreiung): There is one important tax exemption you should be aware of: if you sell an inherited house in which you have lived as your main residence for at least five of the last ten years, no real estate income tax applies. This "5-out-of-10 rule" can apply, for example, if you lived in the house before the inheritance (e.g. the parental home). The condition is that you give up your main residence there at the point of sale. The classic "2-year main residence rule" (residing there for two consecutive years before selling) can also lead to tax relief for inherited properties. If you are unsure, ask a tax adviser or notary whether you qualify for an exemption.
Additional costs: Besides taxes, there are further incidental costs when selling. These include, for example, notary and conveyancing fees, the land register entry fee (1.1% of the purchase price), and, where applicable, the estate agent's commission. In Austria the seller typically pays the agent's commission (maximum 3% plus VAT of the sale price). You should factor these costs into your calculation — but a good agent will often more than offset them through a higher achieved sale price.Why is it worth using an estate agent when selling an inherited property?
You may be considering selling the inherited property privately to save money. With a community of heirs, however, this is not recommended. Here are a few reasons why a professional estate agent is worthwhile:
- Neutral mediator: An agent acts as a buffer between the heirs. They represent the property — not any single heir. This creates trust and reduces internal tensions. As already noted, no co-heir can gain an unfair advantage because a neutral third party controls the sales process. If the heirs have different ideas (e.g. about the minimum acceptable price), the agent can mediate and bring everyone to a common position.
- Market knowledge and realistic pricing: With inherited properties in particular, price expectations often diverge widely ("My parents' house is priceless…" vs. "The main thing is to sell it quickly!"). A good agent determines the fair market value using comparable data and experience. This objective assessment helps the heirs reach an agreement and achieve the best possible price — maximising the net proceeds while avoiding weeks of argument about the asking price.
- Reach and marketing: An agent has professional marketing strategies at their disposal. They produce attractive property particulars, list the property on all major portals, and often have a pool of registered buyers already in their database. This means: a quick sale at a strong price, with fewer viewings. You are spared the inconvenience of showing strangers around every weekend — the agent handles that.
- Smooth transaction management: From gathering all necessary documents (land register extract, zoning plan, energy performance certificate, etc.) to organising viewings and negotiating with prospective buyers — the agent takes an enormous workload off your hands. When several heirs are involved, they ensure a structured process: everyone is kept informed of progress and no one feels excluded. At the end they also coordinate the contract conclusion with the notary. Less stress, fewer mistakes — more time for you.
- Knowledge of legal pitfalls: Agents experienced in inheritance properties know the typical stumbling blocks. For example, they verify that all heirs are correctly registered in the land register or properly represented for the sale to be legally valid. They know which documents are required from the probate process (declaration of heirship, etc.) and can flag issues early — for example if a co-heir needs to be represented (minors require court approval). This helps you avoid costly delays.
Especially in sensitive situations such as an inheritance, it pays to let professionals take the lead. You and your co-heirs can sit back while the agent does the work — and in the end everyone is content with their share of the proceeds.
(Tip: Make sure to choose an agent who has experience with inherited real estate and ideally acts as a neutral adviser. A good early indicator is whether they address the specific challenges of a community of heirs during the initial conversation.)
Practical tips for a smooth sales process
Finally, a few practical tips to help the sale of your inherited property proceed as smoothly and stress-free as possible:
- Seek early agreement: Bring the community of heirs together as early as possible and discuss your goals openly. Does anyone actually want to keep the property? Or is everyone in agreement that it should be sold? The sooner clarity is reached, the better. It is advisable to put your agreement in writing to avoid misunderstandings later.
- Obtain a professional valuation: Have the value of the property assessed by an expert or estate agent. This establishes an objective basis. When every heir knows approximately how much the property is worth, decisions become easier — and no one feels short-changed.
- Clarify the legal position: Ensure all probate formalities have been completed. Are you all registered as owners in the land register? If not, this should be sorted before a sale, as a clear ownership structure is essential. Also check whether an executor is involved or whether the will contains any conditions. If in doubt, seek legal advice — a brief consultation with a notary can be extremely helpful.
- Gather all documents in advance: Collect the key documents early: land register extract, declaration of heirship (proof of your status as heirs), building plans, floor area calculations, energy performance certificate, operating cost overview, insurance documents, and so on. Complete documentation makes a good impression on buyers and speeds up the sale process.
- Calculate costs and taxes in advance: Work out together what net proceeds will approximately remain for each heir after all deductions. Factor in known costs: outstanding loans of the deceased, renovation expenses, taxes (real estate income tax), and fees. For example, if the sale proceeds are needed to discharge a mortgage on the property, the price achieved must be sufficient — otherwise renouncing the inheritance might be a better option. Such decisions should ideally be made before the sale. A tax adviser or notary can help you assess the figures accurately.
- Communication is everything: Throughout the entire sales process, keep communication between heirs transparent and regular. Everyone should know when viewings are taking place, what offers have been received, and so on. This prevents mistrust and rumour. Use conference calls, email distribution lists, or messaging groups — whatever suits you — to keep everyone up to date.
- Keep emotions in check: Inheritance is emotional, there is no doubt about that. Nevertheless, try to bring objectivity to the process. If that proves difficult, consider dividing responsibilities: perhaps one heir takes on the role of project manager for the sale, or you leave as much as possible to the agent. That way you do not need to debate every minor detail together. And remember: take a step back if things get too heated. A good night's sleep before making a decision is better than a hasty mistake.
- Call in experts when needed: Do not hesitate to seek professional help. An estate agent can moderate and manage the entire process. A solicitor or notary can advise on complex legal questions — for example if a co-heir lives abroad, a minor is involved, or there are ambiguities in the will. Although these professionals cost money, they can prevent mistakes that would be far more expensive.
FAQ: Frequently asked questions about selling real estate in a community of heirs
Can I sell an inherited property on my own even though there are multiple heirs?No. If a property belongs to a community of heirs, it can only be sold by all heirs acting together — unanimity is required by law. At most you can sell your inheritance share (i.e. your portion of the estate), but the buyer of your share then takes your place in the community of heirs. The property remains the joint property of the community until a solution is found collectively.
What can be done if a co-heir refuses to sell?Try speaking with them first and exploring a compromise. Perhaps they would like to take over the property themselves — in which case they can buy out the other heirs. If no agreement is reached, you can, as a last resort, bring a partition action, whereupon the court orders the property to be auctioned. This really is the last option, however, as auctions frequently yield lower proceeds. It is better to involve a mediator first, or to jointly commission an estate agent to handle the sale.
What taxes apply when we sell an inherited house?In Austria you do not pay inheritance tax. However, the heir themselves owes property transfer tax (Grunderwerbsteuer) (usually at the favourable graduated rates). On the sale, you as the seller generally pay real estate income tax on the profit (typically 30% of the gain in value). The buyer pays the property transfer tax on the purchase contract (3.5% of the purchase price in most cases). You may be able to benefit from the main residence exemption and avoid real estate income tax if one of you lived there. If in doubt, obtain tax advice to avoid any surprises.
Do you need an estate agent to sell an inherited property? An estate agent is not legally required, but they are strongly recommended. An agent relieves you of considerable burden — not least by mediating neutrally between the heirs and managing the entire sales process professionally. They will help you achieve the best price, handle viewings and paperwork, and know how to navigate potential points of contention. In most cases an agent is well worth the cost, particularly to avoid conflict and mistakes. Of course, you can theoretically proceed without one, but bear in mind the time involved and the potential for dispute.Can I sell my share of the property without the other heirs?Yes, you can sell your inheritance share — either to a co-heir or to an external party. This means you receive money promptly and exit the community of heirs. Note, however: the other heirs have a right of first refusal of two months on the same terms. Furthermore, the buyer of your share becomes the new co-heir and the community of heirs continues with them. This does not mean the property itself is sold — only the ownership structure changes. This solution is sometimes considered when you want to exit the community quickly and receive your money, but the others do not wish to sell. Ideally, however, you should try to find a joint solution for the property, as a new and unfamiliar co-heir can often create even more friction.
Sources: *Note: This guide provides a general overview of the topic in Austria and cannot replace individual legal advice. If you have specific questions — particularly if there is a dispute within the community of heirs or specific tax matters arise — always consult a solicitor or notary to be on the safe side. Good luck with the sale of your property!
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