Anyone who sells a rented or vacant property can receive the profit tax-free – but only once the ten-year speculation period has expired. The beginning and end of this period are determined not by the land register entry, but by the date of notarization. We show you which date counts, how to calculate the period precisely to the day, and from when you can sell tax-free.
What is the speculation period?
“Speculation period” and “speculation tax” are colloquial terms. The law refers to private sales transactions and regulates them in § 23 EStG. Accordingly, the profit from selling a property held as private assets is taxable if “the period between acquisition and sale is no more than ten years.” Conversely, if more than ten years lie between purchase and sale, the profit remains tax-free – regardless of how high it is.
This ten-year period is the core of speculation tax. This guide deals solely with the timing: when the period begins, when it ends, and from which day you can sell tax-free. The amount of any tax depends on your personal tax rate and the profit and is not the subject of this article.
The period applies to plots of land, condominiums, and houses that you have not occupied yourself – typically rented investment properties and undeveloped land. Owner-occupied residential property is subject to a separate exception, which we discuss below.
Which date counts: the notarized purchase agreement, not the land register entry
The beginning and end of the period depend on what is known as the obligatory commitment transaction – that is, the purchase agreement under the law of obligations that you sign before a notary. Because the purchase of land must be notarized (§ 311b BGB), this is always the date of the notary appointment.
The following are not decisive:
- the date of entry in the land register,
- the transfer of possession, benefits, and burdens,
- the point in time when beneficial ownership is transferred,
- an official approval issued only at a later date.
This distinction is crucial because weeks or months often pass between notarization and entry in the land register. Anyone who relies on the land register oriented, it is easy to miscalculate this period. The Federal Fiscal Court applies this principle in its established case law and most recently expressly confirmed it in its decision of June 18, 2026 (Case No. IX B 24/26): For the ten-year period, the date of conclusion of the notarized contracts counts—for the purchase as well as for the subsequent sale.
The symmetry is important: Both the acquisition and the disposal are determined according to the same standard. The period begins with the notarized purchase agreement by which you acquired the property; the end of the period is determined by the notarized agreement by which you sell it again. In both cases, the date of notarization binding on both parties is meant.
When does the ten-year period begin and end?
The period is calculated to the exact day. The general rules of Sections 187 and 188 of the German Civil Code (BGB) apply:
- The date of acquisition—that is, the date of the notarized purchase agreement—is not counted. The period begins on the following day (Section 187 (1) BGB).
- A period specified in years ends at the end of the day whose date corresponds numerically to the date of acquisition (Section 188 (2) BGB).
An example makes this clear:
- Notarized purchase agreement (acquisition): March 15, 2016
- Start of period: March 16, 2016
- End of period: End of March 15, 2026
- Tax-free sale possible from: March 16, 2026
A sale notarized on March 15, 2026 would therefore still fall within the ten-year period—the period between acquisition and disposal would be exactly ten years and thus “not more than ten years.” The gain would be taxable. Only if the notarized sales agreement is notarized on March 16, 2026 or later is the sale tax-free.
Because a single day can in fact be decisive, we recommend not scheduling the notary appointment for the sale on the last possible day, but instead allowing a buffer of several days. This prevents a short-term postponement of the notary appointment from jeopardizing the tax exemption.
From when can you sell tax-free?
In summary, there are two ways to achieve a tax-free sale—and both are purely matters of time:
- Expiry of the ten-year period: You sell after more than ten years have passed since the notarized purchase. This is the standard case for rented and vacant properties.
- Owner-occupation: If you have lived in the property yourself, you can also sell tax-free before the ten-year period expires.
For owner-occupation, Section 23 (1) No. 1 sentence 3 EStG provides for two alternatives: The sale is tax-free if you have either occupied the property exclusively yourself throughout the entire period between acquisition and sale – or in the year of sale and the two preceding years. For the second alternative, a continuous period extending over three calendar years is sufficient; the middle year must have been occupied continuously by you, while the two outer years need not have been complete. Under certain circumstances, the property can therefore be sold tax-free considerably before the ten-year period expires.
This exception concerns exclusively the timing issue of whether and how long you must wait. Whether all requirements for owner-occupation are met in an individual case should be clarified with a tax advisor before the sale.
Advantages and disadvantages of waiting until the end of the period
Whether it is worthwhile to wait until the period expires before selling depends on your situation. You should weigh these points:
- Advantage – Tax exemption: After the ten years have expired, the entire capital gain remains tax-free, regardless of how high it is.
- Advantage – Predictability: The relevant cut-off date can be read precisely to the day from the old purchase agreement, allowing the sale to be scheduled accordingly.
- Disadvantage – Market risk: Anyone who waits solely because of the deadline bears the risk of falling prices or rising interest rates until the tax-free date.
- Disadvantage – Tied-up capital: Until the period expires, your capital remains tied up in the property and is unavailable for other purposes.
- Note for buyers: As a prospective buyer, you can better understand a seller’s desire to wait until the period expires – it often explains why a property is not to be sold notarially until a specific date.
FAQ on the speculation period
Does the purchase agreement or the land-register entry count for the period?
The notarized purchase agreement. The start and end of the ten-year period are determined by the date of the mutually binding notarization, not by the later entry in the land register or the transfer of possession, use and burdens.
How exactly do I calculate the ten-year period?
Take the date of your notarized purchase agreement. The period begins on the following day and ends at the end of the day ten years later that bears the same number. You can sell tax-free from the following dayDate. Example: Purchase on March 15, 2016 – tax-free sale from March 16, 2026.
Does the period restart for an inherited or gifted property?
No. In the case of acquisition without consideration through inheritance or gift, the acquisition by the legal predecessor is attributed to you (Section 23 EStG). The period therefore continues from the original purchase by the deceased or donor—it does not restart.
Can I sell tax-free before the ten-year period expires?
Yes, if you have occupied the property yourself. In that case, the owner-occupation exception applies, and you can sell tax-free regardless of the ten-year period. For rented or vacant properties, however, the full period applies.
What happens if I sell one day too early?
Then the sale takes place within the period, and the gain is generally taxable. Because a single day can make the difference, you should schedule the notarization appointment a few days after the calculated end of the period as a precaution.
Does the period also apply to undeveloped land?
Yes. The ten-year period under Section 23 EStG applies generally to land, including undeveloped land. Here too, the date of the notarized purchase agreement counts.
Conclusion: The notarization appointment is the relevant date
Tax exemption when selling real estate is determined solely by time—and the relevant date is the notarized purchase agreement, not the land register entry. The ten-year period begins on the day after the purchase is notarized and ends ten years later on the day with the same number; you can sell tax-free from the following day. Anyone who has occupied the property themselves can sell earlier. Calculate the period precisely by day based on your old purchase agreement, allow for a small buffer, and clarify any uncertainties with a tax advisor—then nothing stands in the way of a tax-free sale at the right time.