The Limited Times

Now you can see non-English news...

Share Deals: Coalition wants to regulate real estate acquisition more strictly

2021-04-02T12:01:51.686Z


So far, real estate entrepreneurs have been able to save the real estate transfer tax via the detour of a company purchase. After years of dispute, the grand coalition now wants to at least narrow this tax loophole.


Enlarge image

Rows of houses in Munich

Photo: Nicolas Armer / picture alliance / dpa

Until now, anyone who buys shares in a company that owns land or buildings has not had to pay real estate transfer tax.

Large property buyers in particular use the so-called share deals to avoid taxes.

This loophole is now to be made at least narrower, reports the »Handelsblatt«.

Accordingly, the grand coalition has agreed to curb equity transactions and regulate real estate acquisition more strictly.

So far, the following applies: If the buyer does not acquire a property or building directly, but shares in a company that owns this, he does not have to pay real estate transfer tax as long as he takes over less than 95 percent of this company.

He can then also take over the remaining five percent after five years without the tax being due.

As a result, the state lost billions in income.

The property tax is different in the federal states and accounts for up to 6.5 percent of the purchase price.

The new regulation is to apply from July 1st

The participation threshold is now to be lowered, and taxes are to be due if more than 90 percent of the shares in a real estate company change hands within ten years.

The SPD financial politician Cansel Kiziltepe of the Reuters news agency confirmed this on Friday: "With this law we are taking an important step forward in our fight against harmful tax structuring through share deals."

A bill by the Federal Ministry of Finance should therefore be passed by the Bundestag at the end of April and come into force on July 1.

After years of dispute, the SPD recently called for a reduction to 75 percent.

The Union was reluctant to do this, among other things because of constitutional concerns.

The SPD therefore accused its coalition partner of blocking.

In the end, according to the "Handelsblatt" newspaper, the SPD agreed to the 90 percent threshold as part of a package solution.

This included further tax regulations, such as a reform of external tax law.

"In view of the revelations of recent weeks, the Union has found it increasingly difficult to justify its resistance," said Kiziltepe.

“The excessive dedication to the property lobby has also become disreputable in the Union.

We'll see if the breakthrough is achieved when the law is finally passed. "

The coalition partners had already agreed on other detailed issues in the summer of last year.

For example, the sale of shares in corporations with real estate ownership on the stock exchange should not trigger any real estate transfer tax.

Löw / Reuters

Source: spiegel

All news articles on 2021-04-02

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.