FAQ
Germany - Property Sales Tax Return

Anyone required to file a tax return must file a return for the 2023 tax year by the 30th of September, 2024.

If the tax return is filled by a tax advisor or a filling assistance association, the filing deadline is extended to 31st of July, 2025.

If you file your tax return voluntarily, you have 4 years to file your tax return to the tax office, until 31st of December, 2027 for the year 2023.

If you miss the deadline, you must expect a penalty.

For private home sellers, the profit made is taxable only under certain conditions. The so‑called speculation period is intended to prevent you from buying a property only to resell it at a better price depending on the market situation. You will remain tax‑free if you meet the following conditions:

• you sell the property 10 years after the purchase,
• you sell the  property sooner than 10 years after purchase, but you can prove that you have used the property yourself for the last three years.

If you do not meet the conditions for the speculation period, you must declare the sale of your property on your income tax return for the given year. The tax office will calculate the speculation tax, which can be up to 40% of the income.

The following items may be included in the costs:

• real estate agent commissions for both buying and selling,
• notary: internal costs and court costs (registration in the Land Registry),
• property transfer tax,
• renovation works and modernisation measures during the first three years after the purchase of the property (these are acquisition costs and can therefore be deducted from the profit),
• advertising costs incurred during the sale (advertising on the internet or preparation of displays),
• renovation work to achieve the optimum sales result.