When can you sell an inherited flat

Estate agents receive many questions about various issues connected with transactions on the property market. Inheritance matters can be very straightforward, but some are more complicated. Want to find out when you can sell an inherited flat? Read our tips.

An inherited flat – the procedure

Want to settle the matter of an inherited flat? First you need to go through the process of acquiring the inheritance. You must file the appropriate application for a declaration of inheritance – in this case, of the property – with the district court for the deceased's last place of residence. The documents should include the death certificate of the former owner, as well as proof of kinship (for example a marriage certificate or a birth certificate). We are also required to buy a court fee stamp, which costs 50 PLN. The court issues a decision confirming the acquisition of the inheritance once a hearing has been held with the applicant and the other heirs. Inheritance can also be certified by a notary.

Inheritance tax

The legal regulations on inheritance require payment of tax on the inheritance received, even if it consists of property. The closest members of the deceased's family are exempt from this charge, for example a spouse, siblings, parents or children. To qualify for the tax relief, the inheritance must be reported within six months. The amount of the tax may range from 3 to 20 per cent of the value of the inherited property.

READ ALSO – WHERE DO YOU HAVE TO REPORT THE PURCHASE OF A FLAT?

When can you sell an inherited flat – tax on the sale of an inherited flat

Want to sell a flat or house received under inheritance law? There is nothing to stop you. However, remember the tax on the sale of an inherited property. We are obliged to pay it if we sell the property less than 5 years after inheriting it. Relief is available here too. The proceeds from the sale of the inheritance must be spent on your own housing purposes no later than 2 years from the end of the tax year in which the residential property was sold. Expenditure on housing purposes is considered to be: the purchase of a property forming separate ownership, the purchase of land or shares in it, repayment of a loan taken out for housing purposes, renovation of residential premises, and the conversion or extension of a residential building.