Sale of your Real Property in Germany – Taxation of Capital Gain: How high? How to avoid?
Selling real property is such an important matter that professional advice is recommended in order to ensure the protection of your investment.
We will provide support during your purchases and sales of real property in Germany.
We will advise you during the preparation of your sale. We will review your Property Purchase Agreement in order to ensure that you will not take any risk in your sale. We will take care of the formalities of your real property transaction on your behalf. You can rely on our long-standing experience.
Our advice will include all legal and tax aspects of your transaction. Together with you, we will develop strategies to safeguard your legal position and optimize your tax burden.
Sale of Real Property and Capital Gain
In Germany, capital gains from the sale of privately held real property are generally tax-free if the real property was held by a private individual for more than 10 years.
If the real property was held as part of the assets for less than 10 years, a capital gain is taxable as income in Germany.
The sale of real property by a corporation is always taxed, irrespective of the period of time between acquisition and sale. The amount of tax is dependent upon the activities of the company.
The relevant tax treatment depends on a number of factors and can only be determined individually. Therefore, early consultation of counsel is indispensable in order to avoid irreversible tax consequences.