Selling a German property from abroad

The tax rule that catches non-residents

§ 49(1) no. 8 EStG lists, among the domestic income of a limited taxpayer, “other income” under § 22 no. 2 where it is a private sale of domestic land or rights treated like land. So the ten-year rule in § 23 applies to a seller who lives in another country exactly as it does to a resident.

§ 23(1) sentence 1 no. 1: a sale of land is a taxable private sale if the period between purchase and sale is not more than ten years. Buildings and outdoor installations are included, and so are condominium flats. The period is counted between purchase and sale; in an unusual case where the property was acquired free of charge, the predecessor’s purchase is attributed to the new owner (§ 23(1) sentence 3). A sale after more than ten years is outside this provision.

The own-use exception

Property is excluded from the rule if it was used exclusively for the owner’s own residential purposes between purchase (or completion) and sale, or was used for own residential purposes in the year of sale and the two years before (§ 23(1) sentence 1 no. 1 sentence 3). The wording asks about use, not about where you pay tax. A seller who bought a flat as a home, lived there and moved abroad may still benefit if the second branch is met; a seller who let it to tenants during the relevant years generally cannot. See capital gains tax and the ten-year rule and the registration point in Anmeldung: registration is evidence, but the Act speaks of use.

How the gain is calculated

The gain or loss is the sale price minus acquisition or production costs and the income-related expenses (§ 23(3) sentence 1). Depreciation previously claimed against rental income reduces the acquisition cost (sentence 4), so a flat that was let and depreciated produces a higher gain. Gains are tax-free if the total gain from private sales in the calendar year was less than €1,000 (sentence 5). Losses can be set only against gains from private sales, in the same year, and carried back one year or forward under § 10d (sentences 7-8). Which tax rate applies to the result depends on your other German income and on the treaty with your country; see the treaty guides for the UK, the United States and Canada.

Filing the return: the Act requires the taxpayer to submit a signed income tax return for the assessment period (§ 25(3) EStG). I found no separate withholding mechanism on a sale in the provisions read, so the tax is settled by assessment after the sale year; confirm the practice with your tax office or adviser.

The sale itself

The contract needs notarial recording (§ 311b(1) BGB), and the buyer is entered in the land register only after the tax office confirms there is no tax objection (§ 22 GrEStG). The notary’s report to the tax office includes the identification number, date of birth and address of seller and buyer (§ 20(1) GrEStG); a non-resident seller who has no number should read the tax ID guide.

Energy certificate. Under § 80(3) GModG (the former GEG, renamed with effect from 29 July 2026), an energy certificate must be issued for a sale if no valid one exists. The seller or the agent must show it to potential buyers at the latest at the viewing (or promptly if there is no viewing, or on request), and hand it over promptly after the contract is concluded (§ 80(4)). For a house with no more than two dwellings, the buyer must hold an information conversation on the certificate if one is offered free (§ 80(4) last sentence). See the energy certificate guide.

Representation. If you cannot attend, an agent with a power of attorney can sign for you; see buying with a power of attorney, which works the same for sellers.

Payment. Cash, crypto-assets, gold, platinum and gemstones cannot be used as consideration; the parties must show the notary proof of non-cash payment, and the notary may not file the buyer’s registration until it checks the proof (§ 16a GwG). Details in the cash payment ban guide.

After the sale. If you were registered at the property and leave Germany, you must deregister within two weeks of moving out (§ 17(2) BMG).

Which professional to consult

A tax adviser familiar with non-resident owners should see the figures before you sign; the notary handles the deed and the report; an energy consultant issues the certificate; a property valuer can document the value. See the property valuer page.