Capital Gain
80.000,00 €
Holding Status
Taxable (under 10 years)
Tax Due
35.306,52 €
What is the 10-year Spekulationsfrist for property?
Under s 23 EStG, gains from the sale of private real estate are tax-free if the property was held for more than 10 years (Spekulationsfrist). The 10-year period runs from the date of the notarized purchase contract to the date of the notarized sale contract. This rule applies to properties that were rented out. Owner-occupied properties have a shorter exception period.
Are there exceptions to the 10-year rule?
Yes. If you used the property exclusively for your own residential purposes (Eigennutzung) in the year of sale and the two preceding calendar years, the gain is tax-free regardless of the holding period. This means if you lived in the property during 2023, 2024, and 2025, you can sell in 2025 tax-free even if you owned it less than 10 years.
What costs can I deduct from the property gain?
You can deduct: the original purchase price, Grunderwerbsteuer (property transfer tax, 3.5-6.5%), notary and land registry fees, estate agent fees (on purchase), any renovation/improvement costs (not maintenance), selling costs including agent fees, notary fees, and early mortgage termination fees (Vorfaelligkeitsentschaedigung).
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
The 10-year Spekulationsfrist and when property sales are tax-free
When are property sale profits tax-free?
If you hold a property for more than 10 years (Spekulationsfrist), the entire profit is tax-free — no matter how large. Buy for €200,000, sell for €500,000 after 11 years: the €300,000 gain is completely untaxed. This is one of the most generous property tax rules in Europe and a major incentive for long-term property investment.
What if you sell within 10 years?
If you sell within the 10-year Spekulationsfrist, the profit is taxed at your personal income tax rate (14% to 45%) plus Solidaritätszuschlag. A €100,000 gain on top of a €50,000 salary could face a marginal rate of 42%, costing roughly €42,000 in tax. The gain is calculated as sale price minus purchase price, minus selling costs and improvements.
Is there an exception for owner-occupied properties?
Yes, if you lived in the property as your main home (Eigennutzung) during the entire holding period, or at least in the year of sale and the two previous calendar years, the gain is tax-free regardless of when you bought it. Buy in 2023, live in it all of 2023, 2024, and sell in January 2025 — the gain is tax-free even though you held it less than 3 years.
How is the taxable gain calculated?
Taxable gain = Sale price - Purchase price - Purchase costs (Grunderwerbsteuer, notary, agent) - Selling costs (agent, legal) - Improvement costs - Remaining depreciation adjustment. If you bought for €250,000 with €25,000 in purchase costs, improved for €30,000, and sell for €400,000 with €20,000 selling costs, your gain is about €75,000.
What about the 3-property rule?
If you buy and sell more than 3 properties within 5 years, the Finanzamt classifies you as a gewerblicher Grundstückshändler (commercial property dealer). This means all gains are subject to Gewerbesteuer in addition to income tax, and the 10-year Spekulationsfrist no longer applies. Plan your transactions carefully to stay below this threshold.
Is Grunderwerbsteuer due on property purchases?
Yes, when you buy property you pay Grunderwerbsteuer (property transfer tax) of 3.5% to 6.5% depending on the state. In Bavaria it is 3.5%, in North Rhine-Westphalia 6.5%. On a €300,000 purchase in NRW, you pay €19,500 in transfer tax. This is a one-time cost at purchase and is deductible against rental income or added to the purchase price for capital gains calculations.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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