Capital gains tax and the 10 year rule

[YorkshireLad6 7,152]

 

The 10 year rule applies to capital gains tax (CGT). As you have only had it 3 years you will be liable for any CGT.

But around here it will be minimal if anything as prices are not rising...

[psaraph 1]

Hello,

 

I have bought an apartment in Berlin and am wondering about whether to keep it for 10 years (by renting it out) or sell it next year when I leave Germany.

 

What is the tax rate for capital gains on an apartment in Germany as of now? Some facts:

The apartment has appreciated very nicely since 2010, so there is a big chunk of capital gain that will be taxed

I report US as my home and Germany as my host country

I live in this apartment as of now

I have put 25k in renovation over 2010-11 in the apartment

[Freising 503]

§23(1)Nr.1 S.3 EStG

Your capital gain would be exempt from taxes if you lived in there the whole time between the purchase and the sale, or if you lived in there in the year of the sale and the two preceding years.

But maybe you should talk to your tax advisor before you make any move.