Home Purchase of property Renting out Sale of property Our services Links Contact Imprint If a property in Germany is owned and sold by a German non-resident, the right of taxing a capital gain is determined by a double tax treaty. Normally, the double tax treaties allocate this right to the country where the property is located (Germany). According to current German tax law a capital gain is taxable if the property was held for less than 10 years and was rented out. If so, the taxable capital gain is calculated as follows: Sales price + sales expenses - purchase price - purchase expenses + depreciation deducted in previous years = taxable capital gain. Obviously, this calculation might result in a taxable profit even if the sales price is equivalent to the purchase price, as the depreciation is added to the sales price. The capital gain is considered as ordinary income and is subject to German income tax (Einkommensteuer). No special capital gains tax applies. Please feel free to contact us in case of any questions. Selling a property in Germany