You wish to carefully plan the transfer of your real estate assets to the next generation
Real Estate Tax Law
Diverse and Complex
Whether commercial properties, apartments, or houses – owner-occupied or investment properties, new constructions or existing buildings – the tax framework varies but is always relevant.
And that’s not all: Is it about construction or acquisition, ongoing taxation, or the sale of a property? Are we dealing with private individuals with real estate assets or companies managing or participating in real estate? Additionally, real estate tax law encompasses various types of taxes.
What brings you to us?
Various situations related to your property have tax implications. Perhaps you are currently facing one of these scenarios - or something entirely different?
You want to ensure that you have chosen the correct structure or legal form for the taxation of your real estate portfolio.
You aim to proceed with the sale of a property in the most tax-optimized manner possible.
Our Services at a Glance
- VAT-exempt or VAT-taxable rentals
- Comprehensive advice on the acquisition, sale, or investment in real estate
- Tax optimization of your real estate portfolio
- Real estate transfer tax consulting
- Optimization of trade tax payments upon property sale
- Gifting or inheritance of real estate assets
Our Clients Ask Us...
What is the difference between an Asset Deal and a Share Deal?
In a Share Deal, shares of a company are acquired, whereas in an Asset Deal, individual assets (and possibly liabilities) are acquired from a company.
In the real estate sector, tax consequences play a crucial role.
In a Share Deal, the company owning the property is acquired. Typically, this involves a corporation. If the seller is also a corporation, the sale is often nearly tax-exempt. The acquisition of shares is recorded as acquisition costs by the buyer. However, the book value of the property in the acquired company’s balance sheet remains unchanged, so that in a subsequent sale of the property as an Asset Deal, the buyer also bears the seller’s tax burden.
In contrast, an Asset Deal does not allow for a tax-exempt sale. The seller must tax the capital gain, and the buyer records the property at the purchase price.
How can I verify if my notice regarding the new property tax value is correct?
The notice initially contains information about the property’s standard land value, which can be easily checked online (via BORIS).
All other details and the calculation of the respective value can be found in §§ 220 ff. of the Valuation Act (BewG) and the annexes to the BewG.
I want to lease commercial spaces; do I need to charge VAT?
For VAT purposes, the long-term leasing of properties is generally tax-exempt according to §4 No. 12a UStG. This also applies to commercial lease agreements.
However, the landlord can opt for VAT-taxable leasing if the tenant uses the premises for business activities and generates revenues that allow for input tax deduction (option under § 9 UStG). If the tenant provides exclusively VAT-exempt services, such as an insurer or doctor, the landlord cannot opt for VAT taxation.
Conversely, if the tenant is, for example, a tax advisor who charges fees plus VAT, the option can be exercised.
The advantage of opting for VAT taxation for the landlord is the ability to deduct input VAT from expenses, such as maintenance costs. The VAT from the leasing must be paid to the tax office, and the input VAT from incoming invoices can be deducted.
A prerequisite for this is a proper invoice from the landlord to the tenant (§ 14 UStG), in the case of long-term leasing, a rental invoice.
