Ask a tax advisor on the topic of Double taxation

tax on real estate sale abroad?

October 13, 2018 | 40,00 EUR | answered by Steuerberater Bernd Thomas

Hello,

I live in Germany and am selling a property in Austria that I inherited from my late mother in 2015. According to the tax authorities, no inheritance tax is due in Germany because I did not live in Germany at the time of my mother's death.

Now I am paying the necessary taxes in Austria for the sale. My question is, do I also have to pay taxes in Germany for the sale in Austria?

Thank you and best regards,
Katharina Pewny

Steuerberater Bernd Thomas

Dear inquirer,

I am happy to answer your inquiry based on the information provided in a preliminary consultation on frageinen.com. The response is based on the facts you have provided. Missing or incorrect information can affect the legal outcome.

According to the double taxation agreement, gains from the sale of a property in the country where the property is located are subject to taxation, with Austria having primary taxation rights.

However, in the German income tax return, these income must be declared, as they are taken into account in calculating the tax rate for other income under the progression clause.

Best regards,

Bernd Thomas
Tax advisor

Dipl.-Kaufmann (FH) Bernd Thomas, Tax Advisor, Neustadtswall 85, 28199 Bremen, Email bernd.thomas@yahoo.de, VAT ID number DE316948369, Member of the Hanseatic Tax Advisor Chamber Bremen, Registration number 111705, Professional liability insurance with R+V Allgemeine Versicherung AG, Mittlerer Pfad 24, 70499 Stuttgart, Insurance sum: 250,000 euros per individual damage event; annual maximum benefit: 1,000,000 euros (for all damages in an insurance year)