Selling real estate without tax burden: When no speculation tax applies

Anyone selling a property is usually pleased with a substantial profit. But the tax authorities take a close look – because under certain circumstances, capital gains tax is due. To ensure you don't unintentionally fall into a tax trap when selling, we explain when a sale remains tax-free and how you can keep more of the proceeds through smart timing.

Speculation period: When the tax office wants a piece of the pie

The so-called speculation period is generally ten years. Within this period, income tax is levied on the capital gain from the sale of a property under certain conditions. The decisive factor is not the date of the purchase agreement, but the date of notarization, both at the time of acquisition and at the subsequent sale. Only after these ten years have elapsed can you generally sell your property tax-free. Therefore, anyone planning to sell their investment property at a profit should carefully check when the period ends – and ideally only take action after that point.

Owned by the owner? Then special rules apply

You don't always have to wait ten years. There's a significant exception for owner-occupied properties: If you lived exclusively in the property yourself during the year of sale and the two preceding years, or used it continuously as your primary residence, then the capital gains tax is waived – regardless of when you bought it. It's sufficient if you were registered there continuously or partially during the relevant years. This regulation particularly benefits families who want to sell their home because their circumstances have changed – for example, due to a move or the arrival of a child.

Timing is everything – especially when selling

Especially with rented properties, it's worthwhile to choose the timing of the sale carefully. Selling shortly before the end of the speculation period can quickly become expensive if the tax authorities tax the profit. Those who plan ahead can often optimize their tax situation with just a few measures.

Sales within the family circle – be careful about the scope for interpretation

The holding period for capital gains tax purposes also applies to sales to family members. A sale to children or parents is subject to the same tax rules as a sale to third parties. Furthermore, the tax office carefully examines whether it is actually a sale for consideration or a gift. Anyone wanting to be on the safe side should seek tax advice in good time – because well-intentioned family solutions can be assessed differently for tax purposes than one might expect.

Are you considering selling your property and want to ensure you're on the safe side from a tax perspective? We'll advise you on the ideal time to sell and clarify whether capital gains tax applies. Get in touch now – together we'll find the right solution for you .

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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