Ask a tax advisor on the topic of Real estate taxation

Sale of a self-occupied property

April 2, 2011 | 30,00 EUR | answered by StB Kiehne Katja Kiehne

I bought my self-used condominium on 01.04.10 and now want to sell it at a profit tax-free. Is this possible or will there be a capital gains tax?

StB Kiehne Katja Kiehne

Dear questioner,

In the context of an initial consultation and considering your fee input, I would like to answer your question as follows:

§ 23 of the Income Tax Act (EStG) stipulates that generally capital gains from the sale of private houses (or apartments) or land are subject to taxation within ten years.

There is an exception to this rule.

§ 23 para. 1 sentence 3 EStG specifically exempts assets from the regulation that have been used exclusively for personal residential purposes between the time of acquisition or completion and the sale, or in the year of sale and the two preceding years.

Based on the information you provided, you have exclusively used the apartment for personal residential purposes since acquisition, so the capital gain from the sale is not subject to taxation. (It would be different if you had rented out the apartment.)

The legislative rationale for the exemption states that the mobility of employees, in particular, should not be hindered.

Kind regards,

Katja Kiehne
Tax consultant
Master of Business Consulting (M.BC.)
Graduate in Taxation (FH)