CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Germany To Close Tax Loophole For Enveloped Dwellings

Germany To Close Tax Loophole For Enveloped Dwellings

by Ulrika Lomas, Tax-News.com, Brussels

08 August 2019


The German Government has announced proposals that would curb land transfer tax avoidance involving the purchase of properties held by companies.

According to the Government's announcement, property buyers have been able to avoid transfer tax by acquiring shares in a company which owns property, rather than buying the property directly.

Under current law, such arrangements are exempt from transfer tax as long as the investors acquire no more than 95 percent of the shares in the company. However, the Government said that associated investors can buy the remaining shares which can then be combined with the majority shareholding after a five-year holding period without incurring transfer tax.

The Government said that these arrangements have been used to avoid transfer tax on high-value real estate in particular.

Under the proposed amendment to the Land Transfer Tax Act, the maximum shareholding threshold will be reduced to 90 percent, and the holding period increased to 10 years. In addition, the new rules will apply to stock corporations as well as property holding partnerships.

TAGS: tax | property tax | tax avoidance | law | real-estate | legislation | Germany | Tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »