Land purchase with planning contract

A developer would actually sell the house and land in one (purchase) contract. He (the developer) then acts as the builder (he can delegate this to a subcontractor). The buyer takes over the house and above all the rights and obligations only upon acceptance (transfer of risk). Real estate transfer tax and notary fees are calculated on the total price. The purchase is not subject to VAT.

Here the "developer" tries to shift the builder role to the buyer. He forcibly sells the land in connection with a contract for work on building a house. In this case, the buyer is then in the role of the builder. The tax office and notary recognize this and calculate their taxes and fees (nowadays) on the entire amount. The construction service is subject to VAT.

Notaries warn against the second variant. It apparently used to work to save real estate transfer tax, but as far as I know, this is hardly the case today.

IMHO(!) the second variant combines the disadvantages of buying from a developer (developer drawbacks) with those of a custom-built house (no price guarantee, having to bear various builder responsibilities and risks). Ideally, one can build freely on their own land (developer-free). If using a developer, then properly.

(Since real developers purchase a lot from suppliers and pass on the VAT incurred to the buyer, the VAT issue practically makes no difference. The end customer always pays.)

Bieber, you are right. Just to speak with Bert Brecht, the conditions, they are not like that. At least not at the moment. Few, far too few bigger cities designate building land. If something is on the market, bam, the company Wohnglück buys it and from then on it can only be developed through Wohnglück. The Wohnglück GmbHs go even further. Mr. Mayor, we could acquire the field there, what do you think, we develop everything, make you the zoning plan, it costs you nothing, and then your town has 50 plots again. We build those bam bam, you will see, every town wants young families, oh Mr. Mayor, may we invite you and your wife to our Wohnglück seminar on Renaissance architecture in Florence? The fact is, our zoning plan, where we build, was created by the Volksbank and pushed through the city council, the plots go exclusively through the Volksbank, guess who finances 90%?, and about half of the plots have been secured bam bam immediately by the Wohnglücks of this earth, the nicest spots were already gone before the development was finished. Karsten

Regarding VAT: it matters for the mentioned amounts in the sampling. Our €50 per sqm tiles that were included were precisely the net prices and not the gross prices.

The Wohnglücks GMBHs go even further. Mr. Mayor, we could acquire the field there

They are allowed to. But as said, then please do it properly; that means also acting as a developer and not pulling a fast one and putting the buyer in an even worse situation (i.e. "linking" the plot with a planning contract).

Just try googling "Hands off hidden developer models!"

Just try googling "hands off hidden building owner models!"

If only I had informed myself a bit better beforehand :(

Actually, all the alarm bells should have gone off when the house seller suddenly appeared as a private individual during the sale of the land ...

Our €50 per sqm tiles that were included were the net prices and not the gross prices.

Yes, well, that must be precisely regulated in the construction service description. In our construction service description, it says for the tiles "€25/m² incl. VAT." Then it is clear.