Buy and use undeveloped land

Hello dear community,

I was offered by my former seller of our current plot (we are currently building) the sale of his last remaining plot in inventory.

We are talking about 2000 sqm in a new development area (proven to be declared as such by the city and designated in the development plan).

Now I am at least roughly considering possibly taking advantage of this.

It’s really just about weighing the pros and cons, getting your tips/ideas. Maybe some of you have already had experience with this.

In my opinion, the plot is already divided into 4 subplots with a development of semi-detached houses planned (I need to check this again).

Would you take such an offer? Would you buy it and then possibly develop it with semi-detached houses and rent them out? Does the speculation tax rule also apply if I buy an undeveloped plot, build on it, and then sell the houses, or does the 10-year period also apply here?

For financing, I would first have to convince the bank of this idea (to develop and rent out). Because the plot would be in first lien and then the loan for house construction.

I look forward to your comments/tips/ideas.

Thank you.

As far as I know, the 10-year period only applies to rental. So if you build and sell, no speculation tax should be due. However, after a certain number of real estate sales (3 in 5 years?), it is assumed to be commercial trading.

seller at that time

Commercial or private seller?

Commercial or private seller?

private seller

So if you build and sell, no speculation tax should be due.

Yeesss... exactly. You are speculating with a profit after all

As far as I know, the 10-year period only applies to rental. So if you build and sell, no speculation tax should be due. However, from a certain number of real estate sales (3 in 5 years?), commercial trading is assumed.

You are misinformed. It has nothing to do with rental. Buying and selling within ten years always leads to taxable income; the exception is owner-occupancy.