Most Germans don’t buy their homes, they rent
So in Germany, the interest on a mortgage is non tax deductible. The article doesn&#x27;t mention it but I understand that property owners are also liable for capital gain tax if they hold the property less than 10 years.<p>I think that makes sense. There is no reason to favor individuals investing into an unproductive investment (property) over productive investments (stocks and bonds, which enable companies to raise money to start new projects, create jobs, etc). Over-borrowing to bid the maximum amount one can to buy a nineteenth century house doesn&#x27;t create any job for anyone, it just transfers wealth to the hands of the seller.