Profits from the sale of private land and buildings are generally tax-free if the period between acquisition and sale is more than ten years (Section 23 I No. 1 EStG). Before December 31, 1998, there was a period of two years.
Commercial property trading, on the other hand, is subject to income and trade tax if more than three properties (three-property limit) are sold within five years. The jurisprudence of the tax courts has recently no longer applied this limit completely rigidly. Commercial real estate trading was also assumed in cases in which fewer than three properties were sold. On the other hand, individual cases with more objects sold have not led to commercial activity. It therefore increasingly depends on the individual case.