Do I have to pay German tax on the sale of my Miami condo?

If you are a German tax resident at the time of sale, yes — Germany taxes worldwide income, including gains on US real estate. However, if you held the property privately for more than 10 years, the gain is generally tax-free in Germany under the Spekulationsfrist in Section 23 EStG. The US tax still applies regardless of holding period.

How does the Anrechnungsverfahren work for a US real estate sale?

The Anrechnungsverfahren is the credit method under the US-Germany tax treaty. You pay US tax on the gain first via FIRPTA withholding and Form 1040-NR. Germany then credits that US tax against any German tax owed on the same gain, up to the amount of German tax on that gain. The excess US tax, if any, is lost.

Does the Spekulationsfrist apply to a Miami condo if I am a German tax resident?

Yes. The 10-year Spekulationsfrist under Section 23 EStG applies to private real estate worldwide, including a Miami condo. If you held the unit privately for more than 10 years from the date of the original Kaufvertrag, the gain is tax-free in Germany. Held 10 years or less, the gain is taxed at your personal income-tax rate.

Can I avoid US tax by moving to a country with no income tax before selling?

No. The US taxes the sale of US real estate by non-residents under FIRPTA regardless of where the seller lives. Moving from Germany to a low-tax country may reduce or eliminate the German side, but the US tax under Form 1040-NR still applies. The German Wegzugsbesteuerung rules also limit last-minute residence changes.

How do I convert USD into EUR for the German tax return on a Miami condo sale?

Germany requires the gain to be calculated in EUR using the Bundesbank or European Central Bank reference rate on the date of each transaction. Use the purchase-date rate for cost basis, transaction-date rates for improvements, and the closing-date rate for sales price and selling costs. Year-end averages are not accepted for material gains.

How do I find a Steuerberater who can handle the US side of a Miami condo sale?

Look for a Steuerberater whose practice includes Auslandseinkunfte and Internationales Steuerrecht. Ask how many US real estate sales they have handled in the last two years and whether they have a working US CPA they coordinate with. Larger Mittelstand firms in Munich, Frankfurt, Hamburg, and Dusseldorf often have a US-tax desk; smaller firms can also handle this if they have the relevant experience.

Does the same tax framework apply if I am an Austrian or Swiss resident?

The US side is identical. The home-country side differs. Austria taxes private real estate gains at a flat 30% Immobilienertragsteuer with credit for US tax paid and no equivalent of the German 10-year exemption. Switzerland generally does not tax a Swiss resident on gains from foreign real estate but the proceeds become part of taxable Vermogen on the next assessment date.

FAQ · ABSENTEE & INTERNATIONAL CONDO SELLERS

German Tax Side of a Miami Condo Sale: Anrechnung, Steuererklärung & Steuerberater

If you live outside the United States and you own a Miami condo you’re planning to sell, there is one US tax rule you cannot ignore: FIRPTA. It is the single biggest source of confusion, cash-flow surprise, and bad advice that lands on absentee sellers’ desks.

This article gives you the straight answer — what FIRPTA is, what it costs, when it applies, how to legally reduce or recover the withholding, and what to put in motion before you list. It is written specifically for foreign owners of Miami condos, with a focus on DACH-region (Germany, Austria, Switzerland) sellers because that is who I work with most as a German-speaking Miami realtor in Miami

Quick answer (the 90-second version)

Germany taxes its tax residents on worldwide income, including the gain on a US real estate sale. The US-Germany double-taxation treaty avoids you paying twice by crediting US tax paid against your German tax liability on the same gain (the Anrechnungsverfahren). For privately-held real estate held longer than 10 years, the gain is normally tax-free in Germany under the Spekulationsfrist — but the US still taxes the sale in full under FIRPTA.

Germany taxes worldwide income — the Miami condo sale must be declared on your Einkommensteuererklarung for the year of closing.
Spekulationsfrist: private real estate held more than 10 years is tax-free on the German side under Section 23 EStG. Held 10 years or less, the full gain is taxed at your personal income-tax rate (up to roughly 45% plus Solidaritatszuschlag).
US tax on the sale is paid first (FIRPTA withholding plus 1040-NR reconciliation). Germany then credits that US tax against any German tax owed on the same gain.
The credit is per-country, per-income-category — you cannot offset US real estate tax against German wage tax.
If the property was held in a German GmbH, the rules are entirely different — corporate tax plus the participation regime, not the Spekulationsfrist.

If you take one thing from this article: the Spekulationsfrist does not save you from US tax. A Munich owner who held a Brickell condo for 15 years pays zero in Germany — but still pays full US federal capital gains tax. That is the most common surprise on the German-speaker desk. Plan around it before you close, not after.

1. Does Germany actually tax a US real estate sale?

Yes — if you are a German tax resident (unbeschraenkt steuerpflichtig) at the time of the sale. Germany taxes worldwide income, and the gain on a sale of real estate located in the United States is part of that worldwide income.

The treaty does not exempt the sale from German taxation outright. Article 13 of the US-Germany Double Taxation Convention assigns the primary taxing right on real property gains to the country where the property is located (the US), but Germany retains the right to include the gain in the German tax base and then credit the US tax paid. This is the Anrechnungsmethode — credit method, not exemption method.

Two narrow exceptions:

If you are no longer a German tax resident at the time of sale — meaning you have given up your German Wohnsitz and gewohnlicher Aufenthalt — Germany generally cannot tax the gain. Moving to Dubai the year before closing does not work without careful structuring; the Wegzugsbesteuerung rules and substance requirements are real.
If the property is held outside the Spekulationsfrist (more than 10 years) and was held privately, Section 23 EStG renders the gain tax-free in Germany regardless of size. The US tax still applies.

Austria has a similar concept (Immobilienertragsteuer) but no 10-year exemption for foreign property — the gain is generally taxed at 30% with credit for US tax paid. Switzerland taxes capital gains on real estate only at the cantonal level and only on Swiss-located property; a Zurich resident selling a Miami condo generally has no Swiss tax to pay on the gain, but must still declare the sale for wealth tax purposes.

2. What is the Spekulationsfrist and does it apply to a Miami condo?

The Spekulationsfrist — “speculation period” — is the 10-year holding window in Section 23 EStG that determines whether a private real estate gain is taxable in Germany.

Held more than 10 years (calculated from notarized purchase contract to notarized sales contract): private gain is tax-free in Germany.
Held 10 years or less: full gain is taxed at your personal marginal income tax rate. For high earners that runs to roughly 45% plus 5.5% Solidaritatszuschlag plus Kirchensteuer if applicable.

The rule applies equally to foreign real estate. A Hamburg owner who bought a Sunny Isles condo in 2012 and sells in 2027 is outside the Spekulationsfrist — zero German tax on the gain. The same owner who bought in 2018 and sells in 2027 pays full German income tax on the gain.

Two important details:

The 10-year clock runs from the date of Kaufvertrag (signed contract), not from the closing date or the date of transfer of beneficial use.
Personal use of the property changes the rules. A property used as your own residence in the year of sale and the two preceding years is exempt regardless of holding period (the Eigennutzungs-Ausnahme). This rarely applies to absentee Miami sellers — most have rented the unit out or kept it as a vacation home, neither of which qualifies under the German interpretation. Confirm with your Steuerberater.

3. How does the US-Germany tax treaty credit (Anrechnungsverfahren) actually work?

The treaty mechanism is straightforward in principle, messy in practice.

You pay US tax on the gain via FIRPTA withholding plus your Form 1040-NR filing (see the FIRPTA FAQ for that side).
You declare the same gain on your German Einkommensteuererklarung (Anlage SO for private sales, Anlage V if there was prior rental).
Germany calculates the German tax that would be owed on the gain at your personal rate.
Germany credits the US tax paid up to the amount of German tax on that same gain (the Anrechnungshochstbetrag).
You pay any difference.

The credit is capped at the German tax on the same gain — you cannot use leftover US tax to reduce German tax on your salary. If the US tax was higher than the German tax (uncommon for a 10-years-or-less private sale by a high-earner, common for a US-LLC structure), the excess is lost.

Practical points where this gets wrong:

Timing mismatch. US tax is technically “paid” when withheld at closing or when the 1040-NR is filed. Germany generally credits tax “imposed” in the same period as the German tax. If you close in November 2027, the US withholding hits 2027 — but your 1040-NR reconciliation lands in mid-2028. Most Steuerberater work this correctly on the 2027 return using the expected US tax; rare mistakes happen.
Currency conversion. Germany uses the Bundesbank middle rate on the date of each transaction. Cost basis in USD is converted to EUR at the purchase date rate; sales price at the closing date rate. A weak dollar between purchase and sale can shrink the German gain meaningfully — or grow it, in the other direction.
Documentation. The Finanzamt expects originals or certified copies of the US closing statement (HUD-1 / ALTA Settlement Statement), Form 8288-A (the FIRPTA withholding receipt), and the 1040-NR with proof of any refund or balance due. Keep everything.

4. Worked example: Munich owner, $800,000 Brickell condo

Munich-resident German citizen, bought a Brickell condo in October 2018, sells in April 2027. Held under 10 years — inside the Spekulationsfrist, so fully taxable in Germany.

Facts:

Purchase price (Oct 2018): USD 450,000 at EUR/USD 1.15 = EUR 391,304
Documented improvements over 9 years: USD 50,000 (converted at transaction dates) = approximately EUR 44,000
Selling costs (commission, closing, FIRPTA prep): USD 60,000 at closing rate EUR/USD 1.08 = EUR 55,556
Sales price (Apr 2027): USD 800,000 at EUR/USD 1.08 = EUR 740,741

US side:

Gain: USD 800,000 – 450,000 – 50,000 – 60,000 = USD 240,000
US federal long-term capital gains tax at 15%: USD 36,000
FIRPTA withheld at closing (15% of gross): USD 120,000
Refund owed after 1040-NR filing: USD 84,000

German side:

Sales proceeds in EUR: EUR 740,741
Cost basis + improvements in EUR: EUR 391,304 + 44,000 = EUR 435,304
Selling costs in EUR: EUR 55,556
German taxable gain: EUR 740,741 – 435,304 – 55,556 = EUR 249,881
Personal marginal tax rate (assumed top bracket): 45% + 5.5% Soli = effective 47.475%
German tax on the gain: approximately EUR 118,608
US tax credit (USD 36,000 at closing rate) = EUR 33,333
Net German tax payable after credit: approximately EUR 85,275

Total tax burden on the gain: USD 36,000 + EUR 85,275 (roughly USD 92,000 at the closing rate) = approximately USD 128,000 on a USD 240,000 gain.

Same owner, same condo, but bought in October 2014 instead — held more than 10 years at sale. Outside the Spekulationsfrist. German tax: zero. US tax: still USD 36,000. Total burden: USD 36,000.

The 10-year line is worth roughly USD 92,000 in this scenario. If you are within 6-18 months of crossing it, the math is worth running before listing.

5. How do I find a Steuerberater who actually handles US-source income?

Most German Steuerberater are excellent at German tax. Most have not touched a US 1040-NR or a treaty credit calculation in their career. You want the narrow subset who handle US-Auslandseinkunfte routinely.

What to screen for:

Direct experience with the Anrechnungsverfahren on US real estate. Ask for the number of US property sales they have handled in the last 24 months. You want a number, not “we can figure it out.”
Working relationship with a US CPA. The German and US returns have to reconcile to the same numbers, in two currencies, across overlapping tax years. A Steuerberater who already has a US CPA they coordinate with saves you weeks of back-and-forth.
Familiarity with FIRPTA documentation. Form 8288-A, Form 1040-NR transcripts, the closing statement — the German Finanzamt will ask for these, and a Steuerberater who has seen them before will not need translation help.
English working ability. The closing docs, CPA correspondence, and IRS forms are all in English. Some senior partners in Germany do not work in English; their associates do. Confirm who actually handles the file.

Where to look: the Bundessteuerberaterkammer directory lets you filter by specialization. Auslandseinkunfte and Internationales Steuerrecht are the right tags. Larger Mittelstand firms in Munich, Frankfurt, Hamburg, and Dusseldorf often have a US-tax desk. Smaller firms can absolutely handle this — they just need the relevant experience.

I keep a short list of Steuerberater I have seen do this work well, and refer when asked. It is not a kickback arrangement and there is no fee involved — it is just easier for everyone when the German and US sides talk to each other early.

6. What if the condo is held in a GmbH or other entity?

A condo owned by a German GmbH (or UG, or KG, or a US LLC owned by a GmbH) is not a private sale and the Spekulationsfrist does not apply. The entity rules apply:

The gain is taxed at the corporate level in the US (FIRPTA still applies, often at a higher entity rate via FIRPTA on dispositions by foreign corporations, and the branch profits tax can apply on top).
The gain is taxed at the GmbH level in Germany at the corporate rate (15% Korperschaftsteuer + Soli + Gewerbesteuer, typically around 30% effective).
Distributing the proceeds out of the GmbH to you personally is a separate taxable event (Kapitalertragsteuer, Teileinkunfteverfahren, etc.).
US LLCs owned by a GmbH have a US classification election that drives whether the LLC is treated as a corporation or a flow-through for both sides — get this right or you end up taxed as a corporation on one side and a partnership on the other.

The short version: if your Miami condo is in any kind of entity, you need both a US CPA and a Steuerberater on the file before you sign a listing agreement. The tax burden on a sale through a poorly-structured entity can be more than double a private sale, and some of the damage cannot be undone after closing.

7. Currency conversion timing — why USD vs EUR can move your tax bill

Germany requires the gain to be calculated in EUR using the daily reference rate from the European Central Bank or Bundesbank on the date of each transaction:

Purchase date rate for the cost basis
Transaction date rates for each documented improvement
Closing date rate for the sales price and selling costs

When the dollar weakens between purchase and sale, your EUR-denominated gain is smaller than your USD gain — and your German tax falls accordingly. When the dollar strengthens, the opposite. This is currency-conversion gain, and Germany taxes it as part of the real estate gain even though no FX trade ever happened.

A condo bought at EUR/USD 1.05 in 2017 and sold at EUR/USD 1.15 in 2027 shows a smaller German gain than the USD numbers suggest. The reverse — bought at 1.20, sold at 1.05 — can create a German taxable gain even when the USD numbers look flat. Run the EUR gain calculation before you commit to a closing date if FX has moved meaningfully.

There is no smart way to time the closing for FX. There is a smart way to model the EUR-denominated outcome before listing so the number is not a surprise.

8. What about Austria and Switzerland?

Austria. Immobilienertragsteuer applies to private sales of real estate at a flat 30% (plus a 4% inflation adjustment for properties held more than 10 years under specific rules). There is no 10-year exemption for foreign real estate equivalent to the German Spekulationsfrist. The US tax paid is credited against Austrian tax under the US-Austria treaty’s Anrechnungsverfahren. Austrian residents selling a Miami condo should expect a real Austrian tax bill on the gain regardless of holding period.

Switzerland. Capital gains tax on real estate is cantonal and applies only to Swiss-situated property. A Zurich-resident selling a Miami condo generally owes no Swiss income or capital gains tax on the gain. However:

The proceeds become part of your taxable wealth (Vermogenssteuer) on the next assessment date.
Some cantons require the sale to be declared even when not taxed.
If you hold the property through a Swiss entity, corporate tax rules apply at the federal and cantonal levels.

For both Austria and Switzerland, the US side (FIRPTA, 1040-NR) is identical to the German side. Only the home-country treatment differs.

9. Common mistakes

Assuming the Spekulationsfrist saves you from US tax. It does not. The US taxes the sale regardless of how long you held it. The 10-year rule is German-only.
Filing the German return without the US 1040-NR reconciled. The Finanzamt accepts an estimated US tax for the credit, but a meaningfully wrong estimate triggers an amended return and interest. Coordinate the timing of both filings with your Steuerberater and CPA.
Converting at the wrong FX rates. Using the year-end average instead of the per-transaction Bundesbank rate is a common shortcut that the Finanzamt does push back on for larger gains.
Holding through an entity without modeling the tax. A condo in a GmbH can carry 60%+ effective combined tax on the sale once both layers and distribution are counted. A private holding by the same person can be a fraction of that.
Moving to a low-tax jurisdiction the year of sale. The Wegzugsbesteuerung and substance rules will not let you escape German taxation by changing residence the month before closing. This requires real planning years in advance — not a hack to deploy at the last minute.
No documentation file. The Finanzamt asks for the original closing statement, Form 8288-A, the 1040-NR, and proof of FX rates. Sellers who lose track of these mid-process trigger audits that drag on for years.

The sequence for DACH sellers, working backward from closing

6-9 months before closing: Confirm holding period and Spekulationsfrist status with your Steuerberater. Engage a US CPA who handles non-residents. If structure is anything other than private individual ownership, get the entity analysis done now.
3-4 months before closing: Once under contract, US CPA prepares Form 8288-B for reduced FIRPTA withholding. Steuerberater begins modeling the German EUR gain at expected closing-date FX.
At closing: Receive stamped Form 8288-A, signed closing statement, wire confirmation. Store originals.
Year of closing: Declare the sale on the German Einkommensteuererklarung (Anlage SO). Apply for the credit at expected US tax level.
Year following closing: File Form 1040-NR in the US. Reconcile credit on the German return if material variance.

How this fits into Tom's Net + Risk Review

The free 30-minute Net + Risk Review I offer absentee sellers covers the US side in detail — pricing, FIRPTA exposure, assessments, milestone status, net at closing. For DACH-region clients, I extend it to include the German-side framing: where the Spekulationsfrist line falls on your holding period, what the EUR-denominated gain looks like at current FX, and a Steuerberater referral if you do not already have one with US-source experience. I do not give German tax advice — I am a Florida real estate broker. But getting both sides on the same page before you list is the cheapest insurance against either tax authority surprising you.

Disclaimer: Nothing in this article is tax or legal advice. Tax law in Germany, Austria, Switzerland, and the United States changes regularly, and individual situations differ. Anyone selling US real estate as a DACH-resident must engage both a US CPA experienced with non-residents and a Steuerberater experienced with US-source income. I will hand off to those specialists at the right point in every deal — which, on the German-speaker desk, is every deal.

Related FAQs

Selling a Miami condo without flying here?

A free 30-minute Net + Risk Review covers the US side for DACH-resident sellers — pricing, FIRPTA exposure, milestone status, special assessments, net at closing. Available in English or Deutsch. Tax questions go to your Steuerberater; everything else is what I do.