Capital Gains Tax

There is no special or separate capital gains tax in Germany. For income from capital, Germany levies a withholding tax (Abgeltungsteuer). Capital gains derived from private sales are taxed if the assets were held no more than 10 years. If the property was used as a home by the seller in the 2 years preceeding the sale the capital gains are tax exempt exempt. Capital gains derived from the sale of other privatly held assets will not be taxed if the period between acquisition and selling the asset exceeds one year.