Real estate sales abroad
September 13, 2010 | 25,00 EUR | answered by StB Olaf Gayko
Hello,
we are considering selling our property in Turkey.
Purchase date: 1998
Nationality at time of purchase: Turkish
Nationality at time of sale: German
Used exclusively for personal use.
Residence in Germany.
Occupation: Employee
We need information on whether there would be any tax liability in Germany upon the sale, for example in the case of a profit. Please provide me with information on how this would be calculated.
Dear inquirer,
First of all, thank you very much for your inquiry, which I would be happy to answer based on the information you provided and in the context of your initial consultation.
The response is based on the facts presented. Missing or incorrect information about the actual circumstances could affect the legal outcome.
If you own the property in Turkey in your personal capacity, you can sell it without tax consequences (under German tax law) if it has been held for more than 10 years, according to § 23 EStG.
Since you acquired the property in 1998, you should not have any issues in Germany in 2010.
For information on how the matter is handled under Turkish law, it would be best to consult with a Turkish tax law expert, as any tax implications would likely be under Turkish law (principle of situs; double taxation agreement with Turkey).
Best regards,
Gayko
Tax Advisor
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