Private sale transactions
A privately held property sold within the statutory period can create taxable gain. The relevant dates usually follow the binding purchase and sale agreements, not key handover.
Owner-occupation exception
A qualifying owner-occupied home can be exempt under separate timing rules even within ten years. Short letting, family use or mixed use needs closer analysis.
- Purchase and sale notarisation dates.
- Periods of own use and letting.
- Acquisition and improvement costs.
- Broker, notary and selling costs.
When private activity becomes commercial
Repeated property transactions can be treated as commercial dealing. Then the ten-year private rule is no longer the whole analysis and trade tax may enter.
Frequently asked
Is every property sale tax free after ten years?
Not every sale. The statement concerns qualifying private property, not business assets or commercial dealing.
How is the gain calculated?
Broadly from proceeds less tax basis and qualifying transaction costs, adjusted for prior treatment such as depreciation.
Does living in the property help?
A separate owner-occupation exception may apply when its timing conditions are met.
This guide is general information on German tax law, not advice on your individual case. Rules and figures change with each tax year.