Construction description from our developer

  • Erstellt am 2019-03-19 14:01:54

ChrischeS

2019-03-19 14:01:54
  • #1
We are about to sign a building contract.

Due to the applicable real estate transfer tax (+ additional costs for land registry, notary, etc.), we have now excluded some services in the building description:
Painting work and floor coverings
Paving work
Drainage/sewerage

and designated them as to be carried out by you as self-performed work. We plan to have these carried out by the developer under a separate contract.

Question: Is this common practice, or are there other options to save taxes?
 

nordanney

2019-03-19 15:40:50
  • #2

Well, this is a classic case of circumvention = tax evasion.
By the way, you are only evading the real estate transfer tax and the notary fees for the purchase contract.
You don’t save anything on the land register and notary fees for the land charge registration. If you get caught, it can be expensive...
Maybe the developer also wants to participate a little in your tax-saving scheme and concludes the subsequent contract under better conditions for themselves?
To save taxes, you can simply buy the land and then look for a general contractor who will build the desired house.
 

halmi

2019-03-19 16:39:18
  • #3
The tax office is not stupid either, especially in such situations they tend to look more closely.
 

HilfeHilfe

2019-03-19 16:57:16
  • #4
Well, and if, besides the mentioned tax evasion by the [GU], there is an architect who wants significantly higher conditions, you're the ones screwed ;) saving a few euros in taxes is such a risk
 

ChrischeS

2019-03-19 19:52:42
  • #5
Well, you have given me something to think about... So something like that is more in the gray area or beyond.

Are there other possibilities? Or just either or?
 

haydee

2019-03-19 20:07:18
  • #6
No longer in the gray area Clearly above Either BU and pay Or property and GU
 

Similar topics
01.12.2014Real estate transfer tax / what is the tax applied to? Which developer MUST?30
17.03.2015Land with construction obligation = + 20% market value!14
17.08.2015Expand property11
22.03.2016Temporarily lease land26
04.07.2016Purchase of property under a work contract12
16.02.2017Transfer property / not married33
10.05.2017Transfer of property from mother-in-law to me and my wife41
21.07.2017Buying a terraced house from a developer - contract content?71
29.11.2017House and property €284,000 financeable?57
29.11.2017Timeline of real estate acquisition tax and house construction contract20
05.09.2017Developer or general contractor! Safety?30
16.02.2018Buying land and paying part in cash normal?54
27.02.2019Plot of land including turnkey house - experiences?46
28.05.2019How is it regarding a gifted plot of land with house construction?11
30.01.2020Tax office questionnaire for the assessment of real estate transfer tax11
06.01.2020House purchase, prefabricated house from the developer with land10
24.06.2020House on parents' property - inheritance problems?161
07.11.2020Notary contract land inspection: should it be done or not?24
18.12.2021Sell house and property to daughter: save real estate transfer tax?16
16.02.20254 years after construction, the office also demands land acquisition tax on the house96

Oben