Selling a house when emigrating: tax, law & the right timing

What do I need to consider if I emigrate and want to sell my house?

You can sell your property either before or after you leave — for the land itself this makes almost no tax difference, because Germany keeps the right to tax it through limited tax liability (§ 49 EStG). What matters is the 10-year speculation period (§ 23 EStG) and whether you can use the owner-occupation exemption. To handle the sale from abroad, you need a notarised power of attorney.

~300,000

Germans emigrate each year (Federal Statistical Office)

10 years

Speculation period — also applies to non-residents (Section 23 EStG)

90–120 days

Realistic sale time with power of attorney & an agent, from abroad

Why people are emigrating right now — and what it means for your property

The reasons are varied: some seek warmth and a cheaper standard of living in retirement, others react to political and economic developments or follow the call of adventure. What they all share: sooner or later, the property in Germany raises the same questions — sell, rent out or hold?

Retirement abroad

Spain, Portugal, Croatia — lower living costs and sunshine attract retirees. Well-maintained residential properties currently fetch €2,000–3,500/m² in Saxony, often more in Dresden. In many destinations, the proceeds are enough for a significantly larger home.

Political and economic reasons

Rising tax burden, social change, bureaucracy — a growing share of emigrants deliberately seek new ways of life in countries with different conditions.

Work & remote employment

Remote work enables global mobility. Anyone working permanently from abroad no longer needs a German base — the property becomes free.

Family abroad

Children, partners or care responsibilities abroad drive many to emigrate. An inheritance or a marriage can be the trigger.

Sell before or after emigrating?

This is the question I hear most often — and the honest answer is: for the property, it makes little difference for tax purposes. Germany retains the right to tax your property even after you move away (limited tax liability, Section 49 EStG). What really decides the timing are three other factors.

The 10-year speculation period

If the period is about to expire, waiting — even from abroad — can save you the entire speculation tax. This is the most common reason to delay the sale. Check exactly when your period ends.

The owner-occupation exemption

If you lived in the property yourself in the year of sale and the two preceding calendar years, the gain is tax-free — regardless of the holding period. So anyone still living in the property until the end of the year secures this exemption.

Practicality

Coordinating viewings, attending the notary appointment, responding quickly to enquiries — that's easier on site. Those still in Germany save themselves a power of attorney and time-zone hassle. For most people, selling before moving away is the more pragmatic route.

Are you planning to emigrate and wondering what happens to your property?

Discuss without obligation

Tax aspects of selling property for emigrants

You should know three sections of the law — and clearly distinguish between them:

The three key rules for emigrants

Section 23 EStG — speculation tax

The 10-year period applies regardless of your place of residence. As a non-resident too, you must pay tax on the gain if you sell within 10 years and no owner-occupation exemption applies.

Section 49 EStG — limited tax liability

Germany retains the right to tax German real estate even after you move away. You remain liable for tax on the property sale and must file a German tax return.

Section 6 AStG — exit taxation

Applies exclusively to GmbH or AG holdings of 1% or more — not to real estate. If you hold no shares in a corporation, Section 6 AStG does not concern you.

I advise every client who emigrates: settle the tax question first — before you sell furniture or book the flight. Whether the 10-year period ends in 3 months or in 3 years can make a difference of tens of thousands of euros.

— Calvin Linke, Immobilienpartner Sachsen

Calculate speculation tax Exit taxation (Section 6 AStG)

Legal aspects: power of attorney, notary & remote handling

If you already live abroad at the time of the sale, you need legally valid representation. That's simpler than many think — but there are details that absolutely must be right.

Notarised power of attorney

Must be notarised — either in Germany (before you move away) or at the German consulate abroad. A simple signature is not enough. The power of attorney must expressly cover the sale, the signing of the purchase contract and receipt of the purchase price.

What works remotely

Communication with the agent and prospects, agreeing the purchase price, reviewing the draft purchase contract — all possible by email, video call or phone. Your authorised representative handles the signing at the notary.

Keep a German bank account open

The notary transfers the purchase price to an account you specify in the purchase contract. Keep a German account open — some foreign banks restrict large international transfers. Inform your bank about the expected incoming payment.

Obtain documents in good time

Land register extract (no older than 3 months), energy certificate, building plans, service-charge statements — the earlier the better. Abroad you have no quick access to authorities. Task your agent or representative with it.

Loan & early repayment penalty

If a bank loan still encumbers the property, it must be redeemed on sale. The bank charges an early repayment penalty — factor this amount into your calculation.

Tax advisor for the year of departure

In the year you move away you must file a German income tax return. If the sale happens afterwards, another one follows. A tax advisor versed in international tax law takes this burden off you.

The process: how I support you as your Dresden agent

Free value assessment

Cost: €0

I analyse your property and give you a realistic market price — as a basis for your planning and your tax calculation.

Align tax & timing plan

Timing is everything

Together we check the speculation period, the owner-occupation exemption and whether waiting until the period ends makes sense. I recommend a tax advisor for this.

Prepare power of attorney & documents

Before moving away

I coordinate which documents are needed and recommend granting the notarised power of attorney before you move away.

Marketing & viewings

Avg. 8–12 weeks

A high-quality listing with photos and floor plan, targeted outreach to prospective buyers from my network, coordination of all viewings — I handle it completely.

Notary appointment & sale

Possible by power of attorney

I coordinate the notary appointment and advise your representative. Purchase price, handover date and all details are agreed with you in advance.

Completion & receipt of price

Key handover

After the change of ownership is registered, the notary transfers the purchase price to the account you specified. I remain your point of contact until the very last step.

Request your free initial estimate now

Planning to emigrate and your property raises questions? I'm happy to answer them — without obligation and free of charge. As a Dresden agent I know the local market and regularly work with clients who coordinate their sale from abroad.

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Open the checklist Discuss selling when you move

As an emigrant, do I have to pay tax in Germany on the property sale?

Yes — even as a non-resident you remain liable for tax on German real estate (limited tax liability under § 49 EStG). The 10-year speculation period under § 23 EStG applies regardless of where you live. Exception: the owner-occupation rule applies if you lived in the property yourself in the year of sale and the two preceding calendar years.

What is the best time — to sell before or after emigrating?

For the property, the tax difference is small, because Germany keeps the right to tax it. In practice, selling before you leave is often simpler: you can arrange viewings yourself, attend notary appointments in person and need no power of attorney. However, if you are close to the end of the 10-year speculation period, waiting — even from abroad — can be the better choice.

Can I sell my house from abroad?

Yes. You need a notarised power of attorney for a person you trust in Germany. That person can then sign the purchase contract, communicate with the notary and manage receipt of the purchase price. The power of attorney should be notarised by a German notary before you leave — alternatively it can be done at a German consulate abroad.

What is exit taxation and does it affect my property?

Exit taxation under § 6 AStG applies exclusively to holdings of at least 1 % in corporations (GmbH, AG) — not to property. For land and buildings, § 23 EStG (speculation tax) and § 49 EStG (limited tax liability) apply. If, besides the property, you also hold GmbH shares, you should consult a tax adviser specialising in international tax law.

How long does a property sale take if I already live abroad?

With a good power of attorney and an experienced agent, the process takes about as long as it would on site: 3 to 6 months from instruction to the notary appointment is realistic. The biggest time sinks are assembling the documents (land register extract, energy certificate) and coordinating with the notary. So be sure to arrange the power of attorney before you leave.

Do I still need a German tax return after emigrating?

If you had income from Germany in the year you left (rental income, sale profit), you are required to file a tax return. Even if the sale takes place after you leave, you must file a return as a person with limited tax liability. A tax adviser based in Germany can handle this return for you.

Managing Director & Property Adviser

Calvin Linke

Dresden local expert — with many years of experience supporting property acquisitions and brokerage in the Elbe valley.

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