Speculation tax on real estate: which information counts?

01Pre-check the ten-year period based on your data

02Check the ten-year period and assess your own residential use

For private property sales, § 23 EStG generally covers a period of no more than ten years between acquisition and sale. It provides an exception for exclusive personal residential use between acquisition or completion and sale, and for personal residential use in the year of sale and the two preceding years. Have the exact dates and periods of use checked. This overview of private transactions does not assess commercial transactions or business assets.

03Distinguish between inheritance and the concept of profit

For a transfer without payment, § 23 EStG attributes the previous owner’s acquisition to the successor. Inheritance therefore does not automatically start a new acquisition period. Taxable gain is not the same as total sale proceeds: acquisition or construction costs and related expenses matter, and depreciation can affect the calculation. We do not assume a flat tax rate for every property.

04Prepare a testable timeline

To prepare for tax advice, keep a record of dates, events and supporting documents. Start with the purchase agreement, then add changes of use, rental periods and the planned sale. For an inherited property, also collect any available acquisition documents from the previous owner. Flag uncertainties rather than treating an approximate year as a verified date. These documents are for the professional assessment; this page has no upload facility.

05Do not mix revenue and expenses

Organise purchase and sale documents, invoices and existing tax records by subject and date. Initially keep financing, property costs and household expenses separate rather than assuming that every payment is deductible. Have their tax treatment and the actual gain checked. The difference between your desired selling price and the old purchase price may help with planning, but it is not a tax calculation.

06Why two identical sales prices lead to different questions

Two owners each expect proceeds of €400,000. One lacks proof of purchase, while the other has documented several changes of use. A calculator based on the sale price alone would not capture these differences. So first gather the facts and then clarify the tax treatment. An indicative property valuation can help with the price range; it does not provide tax clearance for the sale.