Anyone who owns real estate and holds it in private assets can sell it tax-free 10 years after purchase. However, the so-called speculative period only applies to certain cases, while in other constellations no tax is incurred when selling real estate. The latter is, for example, always the case if since the purchase a use was exclusively for own residential purposes.
So let’s take a look at principle and exceptions to the 10-year period when selling real estate!
1st basic ten-year period for real estate
The well-known 10-year period for real estate, the so-called speculative period, can be found in § 23 EStG. The regulation regulates the conditions under which the sale of assets in private assets is subject to income tax. It also standardizes in which cases an exception to the basic tax liability applies.
In the case of real estate, the following principles apply:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.