Real estate investments
Tax aspects play a decisive role in the planning of real estate investments. We advise institutional investors and fund administrators as well as private individuals on all topics of real estate structuring, from the tax deductibility of financing costs over real estate transfer tax up to the documentation for changes of use according to Sec. 15a UStG (German VAT act).
Institutional investors and fund companies
We advise you on the design and implementation of the optimal acquisition structure for asset and share deals, on ongoing compliance requirements up to the tax-optimised sale and have particular experience in the interaction between domestic and foreign companies and shareholders.
Value added tax and Sec.15a VAT documentation
Depending on the previous and planned use of the property, it may be advantageous to chose letting the property subject to VAT. In this case, in addition to the ongoing VAT obligations, we take over the calculation of the economic advantage for you as well as any necessary §15aUStG documentation.
Real estate transfer tax and structuring
In particular, the restructuring of companies after the purchase of real estate is associated with high real estate transfer tax risks. We analyse the real estate transfer tax consequences for you and work out solutions with you, also to avoid a double burden of real estate transfer tax.
Inheritance tax and gifts
Tax considerations play a major role in the transfer of real estate by way of anticipated succession. For example, the preparation of certified appraisals can lead to more favourable tax results. Conversely, the transfer of shares in companies with real estate holdings can lead to the unintentional disclosure of hidden reserves and income tax charges. Furthermore, we point out possible tax exemptions and optimise the company structure with you with regard to inheritance tax consequences.
Depreciation and financing
We advise you on the optimisation of your depreciation options, be it through the recognition of incidental acquisition costs, the determination of the land portion or the use of the increased depreciation for listed buildings. Furthermore, we help to avoid pitfalls when recognising financing costs. For example, the financing link must not be broken either in the case of initial financing or in the case of subsequent financing or debt rescheduling. In addition, the limits of the interest barrier must be observed for larger investments.
Trade tax and property tax
We clarify for you whether your activity is considered as asset management only or subject to trade tax and whether, in this case, the trade tax reduction can be claimed. Further, we help you to determine the new values required for all real estate in Germany for purposes of property tax as of 1 January 2022. The necessary information must be compiled from land register excerpts, land registry offices and purchase contracts. We support you in obtaining this information as well as in preparing the declarations.