Taxation of Real Estate Sales by Private Individuals in France and Germany

What Investors Should Know About Cross-Border Real Estate Investments When considering real estate sales taxation between France and Germany, private investors need to be aware of several key factors. Real estate investments between these two countries have increased significantly in recent years. Many French investors have acquired properties in cities like Berlin or Munich as second homes or investment objects, while German investors are particularly active in Paris or on the French Riviera. A crucial point in such cross-border investments is the real estate sales taxation when selling the property in the other country. Tax regulations differ considerably between France and Germany and can lead to very different (and sometimes surprising!) results. The following overview shows the most important differences in direct sales (Asset Deal) and explains the tax consequences to be considered when selling a second home in a Franco-German context. It should be noted at the outset that a tax return on the capital gain must generally be filed in both countries – the investor's country of residence and the country where the property is located. https://youtu.be/T3uB3n6IyeY?si=Mg-0UURgYauJ8rBS

Learn everything about real estate sales taxation between France and Germany. Understand capital gains tax, speculation periods, and exemptions for private investors.

Residual Useful Life Assessment – Realistic Depreciation Instead of Flat Rates

For rented properties, depreciation for wear and tear (AfA) plays a central role in ongoing returns. Often, however, depreciation is calculated as a flat rate over a fixed period of use, without taking the actual condition of the building into account. Particularly in cities with many old buildings (e.g., Berlin), the flat 50-year depreciation can deviate significantly from reality. A residual useful life assessment makes it possible in such cases to adapt the depreciation to the actual economic useful life of the building – provided certain requirements are met. The following sections explain the basics, provide practical examples, and answer frequently asked questions.

What is a Residual Useful Life Assessment? A residual useful life assessment estimates how long a building can still be used economically from today’s perspective. It is not a market value or purchase price assessment, […]

An energy performance certificate – most property owners are familiar with it by now. An Individual Renovation Roadmap (iSFP), by contrast, is still new territory for many. Yet for a property such as a condominium owners’ association (example) in Berlin-Friedrichshain (built in 1905, 20 residential units, gas central heating), it becomes a key strategic tool. It combines clear technical planning, concrete public subsidies and a reliable planning framework through 2026 and beyond.

The energy performance certificate: mandatory, but not a renovation plan An energy performance certificate is legally required when a property is sold or rented. It shows: the energy demand or energy consumption of the building […]