According to §23 EStG, profits from the sale of real estate are taxed with speculative tax called in German language “Spekulationssteuer”.
The amount of this tax is calculated on the basis of the profit from the sale, as well as individually for each taxpayer, therefore it ranges from 14 to 45%. The immediate role is the tax class the seller belongs to.
If the owner has sold not more than three properties during five years, it means a profit as an individual. If the amount of sold properties exceeds three real estate, for the tax office it means a commercial benefit. In this case, in addition to the speculative tax, the owner also pays the tax on "business activities".
The apartment was sold at a price of 450,000 euros
The apartment was purchased at a price of 380,000 euros
Winnings per sale: 70,000 after deduction of all costs: 45,000 Individual tax rate: 30%
The speculative tax will be: € 15.750
Please note that this article is for informational purposes only and it cannot replace a full consultation with a tax consultant.
Our company INTECO Real Estate works with professional tax consultants and lawyers who specialize in real estate transactions and can provide advice in Englisch. We would be pleased to help you to resale your property in Germany with the best benefit. For more information, you can contact us by phone +49 163 4145195 (Viber, WhatsApp) or by email: firstname.lastname@example.org.