What is the Spekulationssteuer on property sales in Germany?

Germany does not have a separate capital gains tax on property. Instead, gains from selling real estate are subject to income tax under the rules for private sales transactions (§23 EStG) if the property is sold within 10 years of purchase. This is commonly called the Spekulationssteuer (speculation tax), although that is an informal term rather than an official tax name.

If you sell a property that you have owned for more than 10 years, the gain is completely tax-free regardless of the amount. If you sell within 10 years and the property was your primary residence for the full period of ownership, or for at least the two full calendar years immediately before the sale plus the year of sale, the gain is also tax-free. These exemptions make owner-occupied property very tax-efficient in Germany.

For taxable sales, the gain is calculated as the sale price minus the original purchase price, adjusted for depreciation claimed if the property was rented, plus allowable selling costs. The gain is added to your income and taxed at your personal marginal rate. There is an annual Freigrenze (exemption threshold) of €600 for total private sale gains; if all private sale gains in a year are below €600, no tax is owed. Gains above that threshold are fully taxable.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.