German Green Party proposes ending 10‑year tax exemption on private property sales

A draft bill introduced by the Bündnis 90/Die Grünen parliamentary group seeks to repeal the ten‑year holding period that currently exempts profit from the sale of privately owned real estate from income tax under § 23 of the German Income Tax Act. The existing rule allows owners to avoid taxation on gains after a decade, with an exception for owner‑occupied homes sold earlier. The proposal has entered political debate, although it remains a party initiative rather than enacted legislation.

Separately, guidance on reducing inheritance and gift taxes for families transferring real estate highlights strategies such as tax‑free inheritance of a family home under strict occupancy conditions, repeated use of personal allowance limits (up to €400,000 per parent per child every ten years), and other exemptions. These measures aim to help owners mitigate rising inheritance taxes as property values exceed previous purchase prices.