Dedication for own use is not sufficient for tax exemption

The tax exemption for a family home requires actual owner-occupancy and does not apply if the heir has a theoretical intention of owner-occupancy but is prevented from owner-occupancy due to other obligations.

Inheritance tax exemption for a family home does not apply if the heir is prevented from using the property for his own residential purposes from the outset. Mere dedication for self-use by the heir is not sufficient for tax exemption. In particular, it is not sufficient if the heir states in the inheritance tax return that the property is intended for own use but cannot be used for own residential purposes for compelling reasons. This is how the Federal Fiscal Court ruled in the case of a professor who had undertaken in his appointment agreement to take up residence near the university and was therefore unable to use the property located further away.