Is it possible to avoid a tax on the purchase of real estate in Germany?

Is it possible to avoid a tax on the purchase of real estate in Germany?

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.
  • 20 March 2018
Ask a question

How to sell real estate in Germany to a foreigner?
1 day ago

How to sell real estate in Germany to a foreigner?

How to sell real estate in Germany to a foreigner?
Urgent! To property owners in Germany
2 months ago

Urgent! To property owners in Germany

New law on freezing of rents in Berlin!
How much is an apartment in Berlin
3 months ago

How much is an apartment in Berlin

How much does an apartment in Berlin cost? Forecast 2020
Coronavirus in Germany - quarantine
4 months ago

Coronavirus in Germany - quarantine

Coronavirus in Germany - Quarantine until 17 April
Weekend trip to Riga
6 months ago

Weekend trip to Riga

This is the way team Dominart Real Estate spends their time on a weekend trip in Riga.

 

View all