Selling property in Germany as a foreigner: the 10-year line decides the tax.
// Short answer
Sell German property after 10 years and the gain is tax-free, for non-residents too. Sell inside 10 years and the gain is added to your German income at progressive rates, unless the property was your own home. The sale runs through a notary, as the purchase did, and there are no controls on taking the money home.
Rules and rates as of September 2026. Transfer tax is set by each state and property tax by each municipality, so check your state and city. Every figure links to its source.
On this page
Do foreigners pay capital gains tax when selling German property?
Only inside 10 years. A gain on private real estate is taxable if the property is sold within 10 years of purchase, the Spekulationsfrist (§ 23 EStG). Non-residents are caught by the same rule for German land (§ 49(1) No. 8 EStG). After 10 years the gain is tax-free.
A taxable gain is added to your German income at progressive rates, not taxed at a flat rate. Total private-sale gains below EUR 1,000 a year have been tax-free since 2024.
Sources
What is the own-use exception to the 10-year rule?
A sale inside 10 years is not taxed if the property was used solely as the owner's own home, or as the owner's home in the year of sale and the two preceding years (§ 23(1) No. 1 EStG). A flat let to tenants in the year of sale or the two years before meets neither test.
For most foreign investors whose flat is let to tenants, the 10-year line is the one that counts.
Sources
At what rate is a German property gain taxed for a non-resident?
At the normal progressive income tax rates, from 14% rising to 42% and 45% at the top in 2026, without the basic tax-free allowance that residents get. Only expenses connected with the German income are deductible. A solidarity surcharge of 5.5% of the tax applies above an exemption threshold.
2026 tariff points: 42% from EUR 69,879 of taxable income, 45% from EUR 277,826 (§ 32a EStG). How the German tax is credited at home depends on your country's treaty with Germany, which this page did not check one by one.
How does the sale process work for a foreign seller in Germany?
Through a notary, as the purchase did. The sale contract must be notarised or it is void, both parties declare the Auflassung before the notary, and ownership passes only when the buyer is entered in the Grundbuch. If you cannot attend, a representative can act for you, or you can approve the contract afterwards.
The notary also gathers the release from your bank for any existing land charges on the property. In practice a seller abroad acts by notarised power of attorney, often legalised or apostilled abroad. More on the register: the Grundbuch, explained.
Can a foreign seller take the money out of Germany?
Yes. Germany has no currency or capital controls on repatriating sale proceeds. The buyer must pay by bank transfer, never cash, crypto or gold, and prove it to the notary. The only statistical reporting on cross-border payments over EUR 50,000 falls on German residents, not on a seller living abroad.
The money side in full: transferring money to Germany for a property.
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See the $499 report, page by pageFrequently Asked Questions
Is selling German property after 10 years tax-free for non-residents?
Is there a flat capital gains rate on German property?
Do I need to be in Germany to sell?
Is there a small-gains exemption in Germany?
Header photo: Nordenfan, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.