Structuring of Real Estate Investments

Germany

We maximise the tax efficiency of your real estate investment

Property transfer tax is an important topic when investing in real estate, as is VAT in many cases. Specifics relating to income tax naturally also need to be considered.

Significant tax aspects of real estate transactions

Real property transfer tax and VAT are not only relevant when buying real estate, they also apply to other real estate matters, for example:

  • Real property transfer tax on the consolidation of shares in a share deal
  • Possible real property transfer tax liability as a result of a change of partners in a partnership
  • Real property transfer tax triggered by reorganisation activity
  • VAT treatment of the transfer of a business as a going concern
  • VAT options on the sale and letting of property

Avoiding expensive mistakes

Failure to take proper care means a bigger bill – such as paying real property transfer tax multiple times on complex transactions. This is especially undesirable given the significantly increased tax rates. A forward-looking tax strategy allows us to ensure that even subsequent sales and restructuring activity do not generate any unnecessary tax liability.

To do this, we answer the following questions:

  • Which legal form is appropriate for your property investment?
  • How can you avoid real property transfer tax on the consolidation of shares?
  • Have all tax issues associated with the abuse of legal forms and prohibition periods been considered?
  • Is the VAT option worth it?
  • What needs to be considered from a tax viewpoint in a land purchase agreement?
  • How can trade tax be avoided despite letting by a commercial enterprise?
  • How can taxes be avoided despite disclosing hidden reserves?

We advise with an eye to the future

If an acquisition structure is incorrectly set up, it is almost impossible to avoid an unnecessary and high tax burden. You may be locked into a complicated corporate structure which cannot be modified without expensive tax implications.

Right from the start, our advice is based on a long-term view and identifies the most advantageous tax structuring options. During the acquisition, we set up the appropriate acquisition structure and assist you with all property-related tax issues.

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