Immotion Capital
How many properties can I sell without paying tax?
You may sell your property at any time. But you may have to pay taxes. This is due to the fact that property sales are counted as commercial property trading and private asset management. Income tax can be applied depending on the circumstances.
Within the scope of private wealth management, you may sell a property which is a private asset without paying tax if there is a period of more than ten years between the purchase and the sale. This is stated in §23 EStG (Income Tax Act). If you have used the property as a personal residence, you do not need to wait for ten years.
Commercial property trading is more complex. The property sale is subject to income tax and commercial taxes because it is part of a profit-driven venture. The tax office can designate a property as commercial if you sell three or more properties within five years. It doesn’t matter whether they are developed or undeveloped plots. The value, size and type of use make no difference.
If you are planning to sell three or more properties within a short period of time, we advise that you contact a tax advisor as well as an estate agent. You can sell more properties and save on tax by acting cleverly.