When is selling a property tax-free in Germany?

After the ten-year speculation period (§23 EStG) expires, the sale gain is tax-free — regardless of size. The dates of the notarised purchase contracts at buy and sell are decisive, counted to the day. Within the ten years, the gain is taxable at your personal income tax rate.

Does the 10-year rule also apply to owner-occupied homes?

No. You can sell an owner-occupied property tax-free if you lived in it yourself in the year of sale and the two preceding years — even within the ten years. This also applies if owner-occupation only began shortly before the sale.

How do I calculate the taxable gain?

Gain = sale price minus acquisition costs minus selling costs. For rented properties, the gain increases by the depreciation (AfA) claimed during the rental period, because it reduced the acquisition costs. You pay your personal tax rate on this gain.

What is the three-object limit?

If you sell more than three properties within five years, the tax office may assume commercial property trading. Trade tax then also applies and the speculation period no longer helps. Anyone planning to sell several properties should clarify this with a tax advisor beforehand.

Selling Property in Germany: The 10-Year Rule 2026

A property has risen in value, a good time to sell — and suddenly the question: do I have to tax the gain? The answer hinges on a single deadline and one important exception. This guide shows you when a sale is tax-free in 2026, how to calculate the gain, and which trap landlords need to know.

In short: After ten years, the gain on a property sale is tax-free (§23 EStG) — however large. Within the period you pay your personal tax rate. Exception: owner-occupied properties are tax-free if you lived there in the year of sale and the two preceding years. For rentals, the depreciation (AfA) claimed increases the gain. From the fourth sale in five years, the three-object limit looms.

The 10-year speculation period

Selling a property is a private disposal under §23 EStG. The rule is simple:

Sale after more than 10 years → gain completely tax-free.
Sale within 10 years → gain taxable at your personal rate (up to 45% + solidarity surcharge).

The dates of the notarised purchase contracts are decisive — to the day. Bought 12 March 2016, sold 13 March 2026? Tax-free. Sold 11 March 2026? Taxable. A few days here decide several thousand euros.

The key exception: owner-occupation

If you lived in the property yourself, you don’t need the ten years. The sale is tax-free if the property was

used for your own residential purposes in the year of sale and the two preceding years.

A continuous period spanning three calendar years is enough — in practice that can be just over one year and a few months. A rented property you move into late can still become tax-free this way.

How to calculate the gain

Gain = sale price − acquisition costs − selling costs

For rented properties an important point is added: the depreciation (AfA) claimed during the rental period already reduced your acquisition costs for tax. On a sale within the period it’s therefore added back to the gain.

Worked example

Ms Demir buys a flat for €250,000 in 2019 and rents it out. In 2026 she sells for €340,000. Selling costs: €10,000. During the rental period she claimed €30,000 in depreciation.

Sale price: €340,000
− Acquisition costs: €250,000
− Selling costs: €10,000
- Depreciation already used: €30,000
= taxable gain: €110,000

At a marginal rate of 42%, that’s about €46,200 in tax. Had Ms Demir waited until 2029 (over 10 years), the entire gain would have been tax-free.

Caution: the three-object limit

If you sell more than three properties within five years, the tax office may assume commercial property trading. The consequences: trade tax on top, and the speculation period no longer protects you. Anyone unwinding a larger portfolio is better off planning ahead.

To optimise the running taxation of your rental, also read Rental income and Anlage V 2026. For an inherited property, inheritance and gift tax is also relevant — and the previous owner’s acquisition date applies.

Common mistakes

Miscounting the deadline. The notarial contract dates count, not the year.
Forgetting depreciation. For rentals it significantly increases the taxable gain.
Owner-occupation too short. The two preceding years plus the year of sale must be covered.
Overlooking the three-object limit. The fourth sale in five years can get expensive.

How Restio helps

Whether a property sale is tax-free is decided by dates and details that are easy to miss. Restio calculates it for you in advance:

Check the deadline — enter the purchase and planned sale date, and Restio tells you to the day whether the ten years are reached.
Estimate the gain — including depreciation add-back and selling costs, so you know the possible tax before you sign.
Instant answers — ask in English or German: “Is my sale tax-free?” or “Does the owner-occupation exception apply to me?”

For larger portfolios, commercial property trading or inheritance cases, consult a tax advisor — Restio prepares the key figures so you walk in with clear questions.

With property, the calendar often decides the tax. Those who know the ten-year deadline and the owner-occupation exception time their sale deliberately — and in the best case save the entire tax. The legal basis is in §23 EStG.