Providing good and practical tax advice concerning real estate requires experience and special knowledge in many tax-related legal areas. The more holistic the application of these individual legal areas, the more sustainable the tax savings.
Our experienced property tax law specialists will guide you safely through your property projects and provide ongoing support. They will react to changed framework conditions in good time and ensure that changes in property tax law are used to your advantage.
We act for you in the property tax law area:
Inheritance tax exemption for housing companies
The legislator intended to exempt housing companies from inheritance tax (gift tax) for company assets. The Federal Fiscal Court is of the view that the legislator has not succeeded in this due to a different wording of the law. The tax officers have now been instructed not to apply the ruling of the Federal Fiscal Court.
We are happy to support you in securing the future applicability of the inheritance tax exemption for housing companies.
How to: property evaluation for tax purposes
Property is valued in accordance with tax regulations both in cases of inheritance and gifts and in certain transactions subject to real estate transfer tax. The amount of the taxable real estate value depends decisively on the valuation method and certain details.
We take into account the most favourable valuation method for you as well as the tax-reducing details and prepare the required tax returns for you.
The land tax reform
The first main assessment (determination of the value of the property by the tax offices) is to take place on 1 January 2022. For this purpose, it is expected that from 2022 onwards, property owners will be requested by the tax offices to submit declarations on the determination of their real estate assets to the tax office The land value model proposed by the legislator (so-called federal model) will be adopted in most federal states. However, some federal states will make use of the federal escape clause and fall back on a different model. All models currently in question are briefly presented below.
The land tax amendment is to come into effect in 2025. Until 31 December 2024 the old property values of 1964 (West Germany) and 1935 (East Germany) will continue to apply.
Land tax relief
The law provides for a partial relief of the land tax, for example if the property is unoccupied for a long period of time. Practically, however, there are often cases where this land tax relief is wrongly rejected.
We will advise you as to whether you have an entitlement, file the necessary application in due time and enforce your claim - even in court.
Avoiding real estate transfer tax
The sale of shares in a company or the restructuring within the group can trigger real estate transfer tax. The applicable tax rules concerning real estate transactions are changing continuously.
We advise you how to avoid real estate transfer tax or how to reduce it to a minimum.
Avoiding trade tax
Renting and selling property can be subject to trade tax, particularly where there are multiple sales (commercial property trade). Stock corporations and commercially-oriented partnerships are generally subject to trade tax even if they only rent out their own property.
We can advise you in advance how to avoid trade tax.
Corporate restructuring: all types of tax at a glance
Corporate restructuring is normally not done for tax reasons. Some of its manifestations are, according to the tax office, not exempt from inheritance tax (capitalist and indirect corporate restructuring).
In terms of capital gains tax, the forced triggering of taxation must be avoided and property transfer tax should be taken into consideration too. Therefore, we advise you taking all relevant types of tax into account.
Sales tax optimisation
If you buy property, build it, rent it or sell it, you need high-quality sales tax advice. Let us take care of an optimal structure of the sales tax for your projects.
Audit in accordance with Section16 para. 1 (MaBV)
All property developers and construction supervisors who carry out activities requiring a permit as defined by the German Industrial Code (GewO) are obliged pursuant to Section 16 para.1 of the German Real Estate Agent and Property Developer Regulation (MaBV) to undergo an annual audit of compliance with the obligations under the MaBV. The audit report must be submitted to the responsible district administration office (Landratsamt) by 31.12. of the following year at the latest. We are happy to conduct this audit for you.