Ask a tax advisor on the topic of Real estate taxation

Sale of property in Germany. Residence in Switzerland. Questionnaire for tax office.

January 1, 2013 | 25,00 EUR | answered by Oliver Burchardt

Hello. In 2006, I purchased a condominium (hereinafter referred to as ETW) with my then-wife for 42,500 euros, each owning 50%. The apartment was self-used for a year, then rented out.

Similarly, we purchased a house for 55,000 euros, with her owning 75% and me 25%. In 2009, we exchanged 25% of the house for her 50% of the ETW through the transfer of co-ownership shares, making me the sole owner of the ETW since 2009.

I have had my sole residence in Switzerland since 2008 and have been divorced since 2009. I sold the ETW in 2012 for a profit of 66,810 euros.

The tax office is currently bothering me with a questionnaire to determine if there is income tax liability. Can anyone help me fill out the form? Thank you very much.

Oliver Burchardt

Dear inquirer,

Thank you for your inquiry, which I am happy to answer as part of an initial consultation.

As you state that your sole residence is in Switzerland, in Germany you are subject to limited tax liability for the income from the sale of the apartment and rental income, according to § 49 Abs. 1 Nr. 6 and 8 EStG.

According to Article 6 and 13 of the Double Taxation Agreement between the Federal Republic and Switzerland, the Federal Republic has the right to tax both sources of income.

I am not familiar with the questionnaire that the tax office has sent you. If you upload this questionnaire as a follow-up, I can provide you with more specific guidance on how to fill it out.

Kind regards,

Oliver Burchardt
Tax consultant