Spekulationssteuer
Speculation Tax (10-Year Rule). The popular name for income tax on private property sale gains within 10 years of purchase (§ 23 EStG). After 10 years, or with qualifying owner-occupancy, the gain is fully tax-free.
The clock runs notary date to notary date; refinancing or re-letting never restarts it. Owner-occupiers exit early tax-free with occupancy in the sale year plus the two preceding calendar years (partial years count).
Traps: prior AfA reduces your cost basis (bigger taxable gain on early exits), gains above the €1,000 annual Freigrenze are fully taxable, and 3+ sales within 5 years risk commercial-trading classification of your entire activity.
Frequently asked questions
How long must I hold German property before selling tax-free?
Ten years between the purchase and the sale deed. After that the gain is entirely free of income tax for private owners.
How much is the speculation tax on property in Germany?
There is no special rate: the gain is taxed at your personal income tax rate, up to 45%. On an €80,000 gain at a 42% marginal rate that is roughly €33,600.
Is there an exemption if I lived in the property myself?
Yes. A sale is exempt if the property was used as your own home in the year of sale and in the two preceding calendar years. Part-years count, so the actual period can be well under three full years.
Is there a tax-free allowance on the gain?
An exemption limit of €1,000 per year across all private disposals combined. It is a threshold, not an allowance: exceed it by one euro and the entire gain becomes taxable.