Speculation Period for Real Estate Sales: Tax Pitfalls in Zabo and Laufamholz

Anyone selling a piece of land in Zerzabelshof (Zabo for short), Laufamholz, or Mögeldorf in 2026 faces a question that could have significant tax implications: Has the 10-year capital gains period under Section 23 of the Income Tax Act (EStG) expired-or is the profit still taxable? This article explains the system, works through concrete examples, and highlights the most common pitfalls.

Section 23 EStG: The 10-Year Period and What It Means

Private sales of land and buildings are subject to income tax under Section 23(1)(1) EStG if no more than ten years elapse between acquisition and sale. This is a basic rule with no exceptions based on the amount of profit or the number of transactions.

The 10-year period begins on the date of the notarized purchase agreement and ends on the date of the sales contract-not upon entry in the land register. This sounds simple, but it has its pitfalls:

Anyone who purchased a property in Zabo in early 2016 (e.g., notarized purchase agreement dated March 15, 2016) and sells it today, in May 2026, is right on the cutoff. The deadline would have been March 15, 2026-the property can be sold tax-free provided the sales contract was signed after that date. A sale on March 14, 2026, on the other hand, would still have been subject to tax.

The profit is not taxed at a flat rate. There is no withholding tax as with stock gains. The capital gain is added to the seller’s other income and taxed at the personal marginal tax rate-in Bavaria, plus the solidarity surcharge and, if applicable, church tax.

Special Case: Owner-Occupancy: The 3-Year Rule

Section 23(1)(1), sentence 3 of the Income Tax Act (EStG) contains an important exception: Anyone who has used the building exclusively for their own residential purposes in the year of sale and in the two immediately preceding years pays no capital gains tax-even if the 10-year period has not yet expired.

An example from Laufamholz: Owner X purchased a single-family home in 2021 and has lived there ever since. He sells it in 2026-that is, within the 10-year period. Since he used the house for his own residence in 2024, 2025, and 2026, the exception applies. No profit is taxable.

This exception does not apply to undeveloped land. Anyone who owns a plot of land in Zabo without a building and sells it within ten years must pay capital gains tax on the profit in any case-even if they would have liked to build a house there.

Also not covered: Vacation homes, even if occasionally used by the owner, are not considered a primary residence for tax purposes. A 2023 Federal Fiscal Court (BFH) ruling (IX R 10/22) clarified that owner-occupancy during the relevant period must be exclusive-mixed use (partly rental, partly owner-occupancy) is not sufficient for full exemption.

Market Data 2026: Sample Calculation of Speculation Tax in Zabo

The following example is based on a typical plot of land in Zerzabelshof/Zabo or a townhouse in Laufamholz:

Scenario	Purchase Price 2018	Sale Price 2026	Profit	Tax Burden on €40k Annual Income	Tax Burden on €80k Annual Income	Tax Burden on €150k Annual Income
Plot of land (500 m²)	€220,000	€380,000	€160,000	approx. €46,000 (28.75%)	approx. €64,000 (40%)	approx. €74,000 (46.25%)
Townhouse (not owner-occupied)	€410,000	€590,000	€180,000	approx. €51,750	approx. €72,000	approx. €83,250
Townhouse (owner-occupied 2024-2026)	€410,000	€590,000	€180,000	€0	€0	€0

Calculation basis: simplified income tax rates including solidarity surcharge. Deductible items (incidental acquisition costs, modernization costs, brokerage fees, real estate transfer tax) are not taken into account-they reduce the taxable profit. No guarantee of accuracy in individual cases; always consult a tax advisor.

Source: Section 23 of the Income Tax Act (2026 version); Federal Ministry of Finance letter on private sales transactions; Federal Fiscal Court rulings IX R 10/22, IX R 27/21; Bavarian State Office for Statistics, standard land values for Nuremberg-East 2025. As of Q2 2026.

Pitfalls: What Extends or Restarts the Period

Here are the most common misconceptions:

Gifts to Children: Many owners believe they can circumvent the capital gains tax period by making an early gift to their children and then having them sell the property shortly thereafter. This does not work. For tax purposes, the recipient assumes the donor’s acquisition history. The period continues to run from the donor’s original purchase date-not from the date of the gift.

Transfer to a spouse: Similar logic applies. A gift between spouses does not trigger a new period. The spouse to whom the property was transferred “inherits” the original purchase date for tax purposes.

Contribution to a GmbH or real estate GbR: A contribution to a company in exchange for shares is considered a sale for tax purposes-it triggers capital gains tax if the holding period has not yet expired. This is a pitfall in business splits or when using real estate holding structures.

Partial sale: If a portion of a property (e.g., 200 m² out of 800 m²) is separated and sold, this is considered a separate sale transaction for that portion. The acquisition costs of the entire property are allocated based on area shares; the proportionate profit is taxable if the period is still ongoing.

> The valuation tool from leadmarkt.ch provides an initial estimate of the current market value of your property in Zerzabelshof or Laufamholz-data-driven, in just a few minutes.

Local Nuance: Nuremberg East as a Zone of Appreciation

Zerzabelshof, Laufamholz, and Mögeldorf have experienced remarkable price growth in recent years. The eastern part of Nuremberg benefits from its proximity to the Reichswald, good S-Bahn connections, and a comparatively quiet residential area. Land prices, which stood at €300-350/m² in 2015, now range from €550-700/m² in prime locations in Zabo.

This is the basis for a significant capital gains tax burden on sellers who purchased between 2015 and 2018 and now wish to sell. Someone who purchased a property for €250,000 in 2018 and sells it for €400,000 in 2026 has a profit of €150,000 (before deductions)-and is still within the 10-year period.

Important deduction: Sellers may deduct the following items from the capital gain: real estate transfer tax at the time of purchase, notary fees and land registry fees at the time of purchase, real estate agent fees at the time of sale, as well as documented modernization costs, provided these have not already been deducted for tax purposes. For a property with higher incidental purchase costs and documented modernizations, the taxable gain may be significantly lower than the nominal price increase.

Deductible Items: Where Owners in Zabo and Laufamholz Often Pay Too Much Tax

A systematically underestimated aspect of the speculation period calculation is the deductible costs, which significantly reduce the taxable profit under Section 23(3) of the Income Tax Act (EStG). In practice, many owners fail to keep complete documentation and thus forfeit cash.

Deductible items include:

Incidental acquisition costs: Real estate transfer tax (3.5% of the purchase price in Bavaria), notary fees, land registry fees, and real estate agent commissions upon purchase. For a purchase price of €300,000, these items typically total €15,000-€22,000. Anyone who has not kept the receipts cannot claim these costs-the capital gain is assessed accordingly higher.

Income-related expenses during the rental period: Expenses for maintenance measures that were not deducted as immediately deductible income-related expenses in previous years (e.g., capitalized renovation costs) increase the acquisition costs and thus reduce the profit. Tax law precision is required here: capitalized and immediately deducted costs must be treated differently.

Sale costs: Notary fees for the sale, real estate agent’s commission on the sale (typically 3.57% incl. VAT per party in Nuremberg), costs for the appraisal and energy performance certificate-all of these reduce the taxable profit.

A sample calculation for a property in Zerzabelshof: Purchase price in 2019: €280,000, incidental costs €18,500, land development costs €4,200, attorney fees €1,800. Sale price in 2026: €430,000, seller’s real estate agent commission €15,350, notary fees for the sale €2,100. Nominal profit: €150,000. Actual taxable profit after deducting all items: €108,050. The difference of just under €42,000 represents a tax savings of approximately €17,600 at a marginal tax rate of 42%-solely through careful collection of receipts and complete documentation of all incidental acquisition and disposal costs over the entire holding period.

Current Legal Status in 2026: What the Federal Fiscal Court (BFH) Recently Ruled

Two BFH rulings are particularly relevant for property owners in Nuremberg-East:

In a ruling (IX R 10/22, judgment 2023), the BFH confirmed that the owner-occupancy exemption applies only if the property was used for the owner’s own residential purposes without interruption during the relevant three-year period. Short-term rentals (including through vacation rental platforms) during this period completely preclude the exemption.

Furthermore, the BFH clarified (IX R 27/21, 2022) that even the transfer of use to close relatives (e.g., children) without charge does not count as owner-occupancy-only the actual owner-occupancy by the owner themselves.

Conclusion for Owners in Zabo and Laufamholz

The 10-year speculation period is one of the most significant tax rules for private property owners-and one where a mistake can quickly result in five-figure tax bills. Anyone wishing to sell a property or house in Nuremberg-East should first check the purchase date, then the usage history, and only then decide when and how the sale will be conducted.

Deductible items can significantly reduce taxable profit-this is often underestimated. Careful documentation of all incidental acquisition and modernization costs is worthwhile.

For owners who still have a few years left before the deadline expires, there is a simple optimization strategy: postpone the sale by a few months. Anyone who purchased in November 2025 and signs the contract in October 2035 is still within the deadline. A sale date in December 2035, on the other hand, is tax-free. In this specific example, postponing the sale by just a few weeks can save a five-figure tax bill. Anyone in this situation should not rashly accept the first buyer who comes along, but rather consciously manage the date of the notarial certification.

Another option: document the history of use. Anyone who has lived in the property themselves for at least three years and sells in 2026 should actively provide proof of this to the tax office-primary residence registration, electricity and heating bills, and, if necessary, an affidavit. Without proof, the tax office may deny the owner-occupancy exemption.

Before taking concrete steps, it’s worth checking out the valuation tool from leadmarkt.ch-it provides a realistic basis for your asking price and helps you estimate the capital gain in advance. Knowing your property’s true value allows you to strategically align your timing and tax strategy.

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Created by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of May 2026.