Do I have to pay inheritance tax right away when inheriting property?

You don't have to pay inheritance tax right away - you usually have four years to settle the debt. That's important because a lot of people think it's due immediately, but most tax offices will give you this longer timeframe. That said, you should check with your local tax office about what the specific payment arrangement looks like for your situation, since there can be different deadlines depending on the state and the amount of the inheritance.

You actually can get a payment extension, but it depends on how the authorities assess your situation. The tax office can give you up to ten years if you prove you can't pay the amount right away - for example, because the property is rented out and you want to pay off the debt from the rental income. In your case, you need to file a corresponding application and justify it. A lot of people think four years is the absolute maximum, but that's not correct - that's more like the standard period for a payment deferral.

The important thing: contact the relevant tax office quickly and explain your financial situation. The sooner you take action, the better. If the property is encumbered or you're inheriting debts from the deceased (which is often the case), you can mention that and the deferral will probably be approved. Watch out though - interest accrues during the deferral period, so you need to factor that in. And: if you sell the property, you have to pay off the tax debt immediately from the proceeds.