When is speculation tax due when selling a property?
Anyone who resells a property within ten years of purchase may, under certain circumstances, have to pay tax on the gain made — the so-called speculation tax. Whether and to what extent this applies in your own case can be determined directly with the calculator below.
Speculation Tax Calculator
Tax note: Non-binding guidance, without warranty – not a substitute for tax advice.
How is speculation tax calculated?
The legal basis is § 23 of the Income Tax Act (EStG): if less than a decade lies between the acquisition and disposal of a property, the sale counts as a "private disposal transaction". The gain made is added to the taxable income and taxed at the personal income tax rate — so there is no flat "speculation tax rate"; rather, the individual tax burden depends on total income.
The calculation is done in two steps: first the disposal gain is determined (see sale profit calculator), then this gain is multiplied by the personal tax rate.
These exemptions exist
Even within the ten-year period, a sale remains tax-free in two important cases:
- Owner-occupation: if the property was used continuously for the owner's own residential purposes in the year of sale and the two preceding calendar years, the speculation tax falls away regardless of the holding period.
- Expiry of the period: if more than ten years lie between the notarised purchase and sale contracts, the entire gain is tax-free — regardless of use.
For inherited properties, the testator's holding period is also credited: if the testator already acquired the property more than ten years ago, the sale by the community of heirs can be carried out tax-free.
Example calculation for Dresden
A condominium was bought in 2017 for €180,000 (incidental purchase costs approx. €12,600) and is to be sold in 2026 for €280,000 (incidental sale costs approx. €10,000):
| Item | Amount |
|---|---|
| Total purchase costs | €192,600 |
| Net sale proceeds | €270,000 |
| Disposal gain | €77,400 |
| Holding period | 9 years |
Since the holding period of 9 years is just under the 10-year period and there is no continuous owner-occupation, this gain would in principle be taxable. At a personal tax rate of 35 %, around €27,090 in tax would arise. If the sale were just one year later, the entire gain would be tax-free — a difference that has a clear financial impact and should be taken into account when planning a sale.
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