Anyone selling a gifted property usually asks themselves first: Does the ten-year speculation period start over with the gift? The answer is no. For speculation tax purposes, the donor’s purchase date still applies—not the day on which you received the property. We explain what this means in concrete terms, when you can sell tax-free, and how speculation tax clearly differs from gift tax.
Does the speculation period start over when a property is gifted?
No. This is the most important rule for anyone wishing to sell a gifted property. In the case of an acquisition without consideration—which includes both gifts and inheritances—the law attributes the acquisition by the previous owner to you. This is governed by § 23 paragraph 1 sentence 3 EStG: The legal successor is attributed “the acquisition ... by the legal predecessor.”
In practical terms, this means: The ten-year speculation period does not begin on the date of the gift, but rather on the date when the donor originally purchased the property. The donor’s original acquisition costs also remain decisive—namely, for the later calculation of any potential gain.
An example: Your father bought a condominium in 2013. In 2026, he gives it to you, and you want to sell it. Since more than ten years have passed between your father’s purchase (2013) and your sale (2026), the speculation period has long since expired. The sale is tax-free—regardless of the amount of the gain.
If, on the other hand, your father had not bought the apartment until 2020, the ten-year period would not yet have expired in 2026. In that case, speculation tax could be incurred upon the sale—unless one of the exceptions mentioned below applies.
Speculation tax and gift tax are two different taxes
This often causes confusion, so here is the clear distinction: Two completely different taxes may be relevant in connection with a gifted property.
- Gift tax is incurred upon the gift itself—that is, at the moment the property is transferred to you. It depends on the value of the property and your relationship to the donor.
- Speculation tax is incurred only upon a later sale—and only if you sell within the ten-year period withSell the profit.
For gift tax, generous personal allowances apply under Section 16 of the Inheritance and Gift Tax Act, which can be used again every ten years:
- Spouses and registered civil partners: 500,000 euros
- Children and stepchildren: 400,000 euros
- Grandchildren: generally 200,000 euros
- Other persons (such as siblings or friends): 20,000 euros
If the property value is below your allowance, no gift tax is due. This guide focuses on the selling side—that is, the speculation tax.
When does the sale remain tax-free?
Even in the case of a gifted property, there are several ways to sell without any speculation tax:
- Ten-year period expired: If the donor purchased the property more than ten years before your sale, the sale is tax-free. The donor’s purchase date is decisive, not the date of the gift.
- Owner-occupation: The sale is also tax-free if the property was used exclusively for your own residential purposes in the year of the sale and the two preceding calendar years (Section 23 paragraph 1 sentence 1 number 1 of the Income Tax Act). In the case of a gifted property, the donor’s own use also counts—not only your own.
- Profit below the exemption threshold: If your total profit from private sales transactions remains below 1,000 euros in the calendar year, it remains tax-free. Caution: This is an exemption threshold, not an allowance—if it is reached or exceeded, the entire profit is taxable.
If none of these exceptions applies, the profit from the sale becomes taxable.
How to calculate the taxable profit
It is not the sale price that is taxed, but only the profit achieved. And for this profit, contrary to what many assume, the donor’s historical acquisition costs are decisive—not a value of zero euros, for example.
The simplified formula is:
Sale price − donor’s acquisition costs − selling costs = taxable profit
A calculation example: Your mother bought an apartment in 2019 for 250,000 euros. In 2026, she gifts you the apartment, which you immediately sell for 340,000 euros. The 2019 purchase counts for the period—the ten years have not yet elapsed, so the sale is generally taxable. The profit is 340,000 − 250,000 = 90,000 euros, less your selling costs (such as for an advertisement or appraisal).
This profit is added to your other income and taxed at your personal income tax rate – depending on your income, up to 45 percent, plus the solidarity surcharge and, if applicable, church tax. There is no fixed “speculation tax rate.”
If the property was rented out and depreciation (AfA) was claimed for it, the taxable profit increases accordingly because the depreciation claimed reduces the acquisition costs.
Special case: partially consideration-based gift
Not every transfer is entirely without consideration. If, for example, you assume an outstanding loan of the donor as part of the gift or pay an equalization payment to siblings, this constitutes a partially consideration-based transfer. The transaction is then divided into a consideration-based and a non-consideration-based part – in proportion to the consideration relative to the market value.
The Federal Fiscal Court confirmed this so-called separation theory in its judgment of 11 March 2025 (case number IX R 17/24): Assumed debts are deemed consideration. For the consideration-based part, a private disposal transaction under Section 23 of the German Income Tax Act (EStG) may already arise for the donor if their own ten-year period is still running. In such constellations, you should seek tax advice before the notarial contract is signed.
FAQ about gifted property and speculation tax
Does the speculation period start over when a property is gifted?
No. The ten-year period does not start over with the gift. Under Section 23 EStG, the donor’s acquisition is attributed to you – the period therefore runs from the date of the donor’s original purchase.
Which date counts for the ten-year period?
The date of the notarized purchase agreement by which the donor acquired the property at the time. The date of the gift to you is irrelevant to the period.
Do I have to pay speculation tax if I lived there myself?
No, provided the property was used exclusively for your own residential purposes in the year of sale and the two preceding years. For a gifted property, the donor’s own use is also taken into account.
How high is the speculation tax?
There is no fixed rate. The profit is taxed at your personal income tax rate – up to 45 percent plus the solidarity surcharge and, if applicable,Church tax.
Is speculation tax the same as gift tax?
No. Gift tax is incurred upon the transfer, while speculation tax only arises upon a subsequent sale within the period. They are two separate taxes, each with its own rules and deadlines.
What applies if I have assumed debts?
Then this constitutes a partially remunerated gift. The transaction is treated proportionately, and the donor may incur speculation tax on the remunerated portion. Have such cases reviewed by a tax professional in advance.
Conclusion: The donor’s purchase date is decisive
Anyone who sells a gifted property does not have to wait out the speculation period again. For the ten-year period and for calculating the gain, the donor’s original purchase counts continuously. If the donor held the property long enough or occupied it personally, you can sell it tax-free. Otherwise, only the actual gain—based on the original acquisition costs—is subject to your personal tax rate. And, importantly: Do not confuse speculation tax with gift tax, which already plays a role upon the transfer. If you can freely choose the time of sale, it is often worth checking the calendar—sometimes a few months of patience are enough for the period to expire.