What the estate really costs
Three families of cost follow one another: settling the estate, holding the property, then selling it. Anticipating them avoids unpleasant surprises at the point of division.
01Settling the estate
Notary fees for the deed of inheritance, the inventory, the transcription and the division. They depend on the value of the assets and the complexity of the file. Ask for a written estimate at the first meeting.
- Costs of obtaining administrative and cadastral documents.
- Translations and legalisations where an heir or a property is abroad.
- Possible expert fees if the value is contested.
02Inheritance tax
In the direct line the legal share is in principle exempt in Luxembourg. The burden becomes significant between collateral relatives and for unrelated persons.
- The calculation is based on the value at the date of death.
- An understated property value can be reassessed by the administration.
- An overstated value costs money if the property is later sold for less.
03Holding the property in the meantime
This is the most underestimated item. It runs from the date of death until the sale or the division.
- Property tax, insurance, energy, service charges.
- Routine maintenance and emergency call-outs.
- A commune may levy a charge on unoccupied dwellings: check locally.
04Selling
On sale the seller bears the energy certificate, the agreed agency commission, the mortgage discharge where applicable, and possibly tax on a capital gain.
- Registration duties on the purchase are paid by the buyer, not by you.
- The capital gain is measured against the value used for the estate, which is why a defensible valuation matters.
- The taxation of capital gains has been amended several times in recent years. Have the applicable rate confirmed for your situation by your tax adviser or the ACD.
Rates, thresholds and allowances change regularly. This site deliberately avoids publishing figures that could go out of date: ask the notary, the AED or the ACD for the current position.