BFH allows tax-free sale of second homes

Germany's Federal Fiscal Court (BFH) ruled that profits from selling a second home can be tax-free if the property was used exclusively for personal purposes in the year of sale and the two preceding years. The status as primary residence is irrelevant; actual owner-occupancy without rental is decisive. The court also changed its stance on interest-free installments: if the contract clearly states each payment goes entirely toward the purchase price, no taxable capital gains arise.