If you sell a rented property in Germany within ten years of buying it, the profit is taxed as a private sale transaction under §23 of the Income Tax Act (EStG) — commonly called the speculation tax (Spekulationssteuer). The gain is taxed at your personal income tax rate, which can quickly add up to a five-figure amount. Our speculation tax calculator shows how much tax to expect and how much of the sale proceeds you keep.
How to use this calculator
The calculator derives the taxable gain from the difference between sale proceeds and acquisition costs. Here is how:
- Step 1: Enter the original purchase price and the purchase costs at the time (transfer tax, notary, agent) — both count towards the acquisition cost.
- Step 2: Enter the expected sale price and selling costs (e.g. agent commission, prepayment penalty).
- Step 3: Enter the holding period in years. What counts is the time between the two notarized purchase contracts.
- Step 4: For rented properties: enter the total depreciation (AfA) claimed so far. It reduces the acquisition cost and thereby increases the taxable gain.
- Step 5: Enter your personal marginal tax rate (top rates: 42% or 45% including the wealth surcharge).
Understanding the results
The calculation shows the tax impact of a sale in detail:
- Taxable capital gain: sale proceeds minus selling costs, minus the acquisition cost reduced by claimed depreciation.
- Estimated speculation tax: the gain multiplied by your personal tax rate — due only if you sell within the speculation period.
- Net proceeds after tax: what remains of the sale price after selling costs and tax.
- Assessment: whether the sale is tax-free (period expired, no gain, or gain below the €1,000 exemption threshold) or taxable.
Why the speculation period is crucial for investors
The 10-year period is one of the most important tax levers for property investors in Germany: once it has expired, the entire appreciation is completely tax-free — an advantage hardly any other asset class offers. Selling shortly before the deadline, on the other hand, can be very expensive, because on top of the appreciation the depreciation claimed over the years is effectively taxed back. If you lived in the property yourself in at least the year of sale and the two preceding years, the sale is also tax-free — but this exception does not apply to continuously rented properties. For exit planning this means: check the holding period before initiating a sale. A few months of waiting can make the difference between full tax liability and complete tax exemption.
Tips
- •The period runs between the dates of the notarized purchase contracts (acquisition and sale), not handover or land register entry.
- •The €1,000 threshold is an exemption limit (Freigrenze), not an allowance: if the gain exceeds it, the entire gain is taxed.
- •Losses from private sale transactions can only be offset against gains from similar transactions — not against other income.