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Speculation tax despite Swiss residency?

January 1, 2013 | 25,00 EUR | answered by Wirtschaftsprüfer André Hintz

Hello. In 2006, I bought a condominium (referred to as ETW) with my then-wife for 42,500 euros, each owning 50%. The apartment was used by ourselves for a year, then rented out. I also bought a house for 55,000 euros, with her owning 75% and me owning 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 now bothering me with a questionnaire to determine if I owe income tax. Am I still liable for tax in Germany despite living in Switzerland, and how much would it be? Additionally, I would need help filling out the questionnaire (10 questions on purchase costs, etc.), for which I will of course compensate accordingly in a separate question. Thank you very much.

Wirtschaftsprüfer André Hintz

Dear questioner,

Could it be that you have asked the question twice?

Regarding the question of tax liability.

You are limited tax liable in Germany according to § 1 para. 4 EStG, as you have other income from private sales transactions according to § 49 para. 1 no. 8 in conjunction with § 22 no. 2 in conjunction with § 23 EStG.

The double taxation agreement with Switzerland assigns the right to tax income from immovable property to the state in which the property is located. Therefore, you must submit a declaration in Germany (Form ESt 1 C as well as attachment SO).

If you have any further questions, I am happy to assist you.

I hope my explanations have been helpful to you and remain

Sincerely yours,

André Hintz
Tax consultant

Steuerberatung@andrehintz.de