Calculate the sale profit

The acquisition costs form the basis of the calculation and comprise more than just the purchase price at the time:

• The purchase price of the property at the time of acquisition
• Incidental purchase costs: real estate transfer tax (in Saxony 5.5 % since 2023, previously 3.5 %), notary and land register costs (around 1.5–2 %) and, where applicable, the agent's commission on the purchase — in total usually 7–7.5 % of the purchase price
• Subsequent production costs: major modernisations (e.g. a new roof, new heating) also count towards the acquisition costs and thereby reduce the taxable profit

Anyone who captures these items in full avoids the profit — and thus a possible tax burden — being shown as higher than necessary.

The sale itself also gives rise to costs that reduce the proceeds before the actual profit is determined:

• The agent's commission: in Saxony usually around 3.57 % incl. VAT, often split between buyer and seller
• The cancellation of land charges: usually 200–500 euros
• Where applicable an early repayment penalty, if an ongoing loan is repaid early

The net sale proceeds result from the sale price less these disposal costs.

The profit determined is subject to what is known as speculation tax if the property was owned for less than ten years and was not used by the owner (§ 23 EStG). In that case the profit is taxed at your personal income tax rate.

The profit remains tax-free, by contrast, if either the 10-year period has elapsed or the property was lived in by the owner in the year of sale and the two preceding calendar years. For a precise classification of your own situation, it's worth taking a look at the speculation tax calculator.