German Real Estate Tax Law

Advice on the acquisition, management and sale of real estate

Real estate, such as houses, apartments or commercial properties, remains one of the most important forms of investment in Germany in view of the ongoing phase of low interest rates. Compared to other classic investment forms, they promise higher yield prospects.

The yield success of real estate is largely dependent on the underlying tax conditions. At each stage of the "life cycle" of a real estate investment, tax issues arise that should be considered in the investment decision in advance. The subject of real estate and tax law is varied, complex and usually involves different types of taxes.

Possible tax types connected to real estate in Germany

Depending on your specific real estate project, different German taxes might apply, for example:

Value Added Tax
(Corporate) Income Tax
Construction Deduction Tax
Property Tax
Transfer Tax
Inheritance/Gift Tax

An experienced real estate tax lawyer can guide you through all the applicable laws and regulations and make sure that your project is optimized with regard to taxes.

Our clients in German real estate tax law

Our clients include

institutional investors,
real estate developers and
wealthy private individuals.

We would be happy to advise you in all aspects of German real estate tax law during the entire life cycle of your property: investment or development, holding or management and finally sale.

Our consulting services in real estate tax law:

Phase 1: Investment/Acquisition/Development

Assessment and implementation of the optimal investment structure, in particular with regard to
- the real estate transfer tax and optimization possibilities with so-called share deals,
- the value added tax obligation and any input tax corrections in accordance with Section 15a of the German Value Added Tax Act (UStG) in the event of acquisition as part of the sale of an entire company,
- avoiding trade tax on subsequent holding and management
Drafting and negotiation of tax clauses in the sales contract to reduce possible liability risks
Advice for real estate developers and general contractors on construction tax deduction according to Section 48 EStG (Bauabzugsteuer)

Phase 2: Holding/Managing

Advice on accounting and current taxation issues regarding
- Income and corporate income tax
- Value added tax
- Property tax according to the recent property tax reform
Trade tax optimization through the use of foreign SPVs (Special Purpose Vehicles), e.g. by means of the so-called extended trade tax reduction

Phase 3: Exit/Sale

Advice on the tax-optimized exit from the real estate investment
Optimization of the taxation of the capital gain in terms of income tax, corporate tax and trade tax
Examination of the limited tax liability on the sale of shares in corporations with German real estate ownership (so-called property-rich or real-estate-rich corporations) according to Section 49 (1) No. 2 (b) cc Income Tax Act
Real estate transfer tax optimization
Consulting on value added tax, in particular on the so-called sale of the company as a whole
Drafting and negotiation of tax clauses in the sales contract to delimit the liability for tax debts
Consulting on inheritance/gift tax in the case of property succession

Your attorney for German real estate tax law

Do you have questions about the taxation of your property in Germany? Would you like to make your investment structure as tax-efficient as possible? Your contacts are

We offer the necessary expertise for all possible structuring options. Do not hesitate to contact us with your questions. The easiest way to reach us is to call (+49 69 76 75 77 80) or send us an e-mail (info@winheller.com).