Duplex: Share the property or remain the owner

Good day everyone, I am new here and would like to briefly introduce myself: I am 29 years old, come from Bavaria, and plan to build a house soon. On the topic: Last year I bought a plot of land with 730sqm in a new development area. Now my father and I have come up with the idea that we could build a semi-detached house there. He would cover the costs of one half and I the other. He will rent out his half later, I will live in mine for at least some time. Now my question: Should we divide the plot beforehand or is it okay if I am the owner of the plot? What are the tax advantages or disadvantages? Thank you very much

We have just dealt with this topic in detail here: The house always belongs to the person on whose property it stands. No matter who paid for it. So you need to discuss from various perspectives what risks and side effects there are if you realize this project in the intended form. For example, with regard to the later inheritance tax, the possible need for care of the father, and so on. External tax and legal advice is certainly advisable here as well. And fundamentally, you should of course ask yourself whether it is wise and prudent to live wall-to-wall or terrace-to-terrace with strangers that your father has chosen as tenants for his half of the house, whether with shared or separate property.

If in the end you really want to tackle the matter of the semi-detached house, it might perhaps also be an idea that your father leaves you the money for his half as an advance inheritance. Every ten years, there is a new tax exemption amount of EUR 400,000 available. It could be stipulated that the rental income attributable to his half belongs to him if it is important to him to have regular income. It’s all a question of the exact arrangement.

Personally, I would not build a semi-detached house, but that’s just by the way. If two full floors are possible there, I would rather arrange the residential units one above the other. I shudder at houses where at some point the two halves of the facade or the roof are in completely different conditions because one takes care of it and the other does not.

What does the development plan say? Two residential units permissible? Floor area ratio/plot ratio sufficient? Division either real or according to [WEG] in any case sensible. What benefit does this have for you at all?

First of all, thank you very much for the answers. Thank you for the tip about the inheritance tax. We will have to consult a tax advisor, that's true. The development plan states a maximum of 2 residential units per plot. According to the municipality, I already have the approval to build a semi-detached house with a maximum of 2 full floors. Currently, we are looking for a construction partner or construction company that offers semi-detached houses in solid construction in the Bavaria area. At the same time, the question of which heating system will be installed is currently arising. We are currently leaning towards gas or heat pump.

I suspect that for quite a few readers the willingness to respond died exactly the moment you suddenly brought up the heating question alongside the basic land division question. Your original question was perfectly fine, and it’s a great topic to discuss, but if you really think you can casually introduce a completely different topic that has its own category here with hundreds of discussions, it actually shows me that you’re not mentally organized enough yet to start a house-building project at all. It seems others feel the same way when I compare the silence here with the usual frequency of responses...

The development plan states a maximum of 2 residential units per plot. According to the municipality, I already have the okay to build a semi-detached house with a maximum of 2 full stories.

This does not necessarily mean that the plot can definitely be divided. Normally, in new development areas, the plots are in their final size. Especially with 730 sqm, which is not generous (in our district, independent plots must be at least 650 sqm. Anything else is handled as an ideal division). It also occurs to me that renting out, i.e. investment properties, are not necessarily allowed to be built.