Is it possible to avoid a tax on the purchase of real estate in Germany?
Basically, the buyer must pay property tax after the purchase of the property. How could you avoid this?
One of the legal and most effective options is a share deal. The main advantage in favor of a share deal: transactions in equities (rather than asset deals: asset transactions) is a potential tax saving option when buying a property.
The tax won't be charged if the buyer does not acquire more than 94.5% of the shares of the company and the seller has a reserve of more than 5.5% of the shares of the company for a specified period. This time period should last 5 years. During the sixth year, the remaining 5.5% can be assigned to the buyer. This 5.5% must belong to either the seller or an external third party.
If you are interested and would like to know more details about this topic, we would be pleased to advise you and create an action plan.
When buying or selling real estate or shares in the company, there are different characteristics in the calculation of sales tax, for which we would like to advise you personally.