Land register entry - as a couple or as a GbR for tax avoidance

Hello everyone,

I have a question, primarily for the lawyers among us, but of course the opinion of everyone else is also welcome. Maybe there are some among us who have faced the same issue.

Briefly, the underlying facts:

My girlfriend (26), a student of teaching studies shortly before her internship, and I (27), a civil servant in the upper service, will buy a plot of land in my hometown for about €100,000, which is not planned to be built on for about 4-5 years. The financing and purchase contract are settled, it is now only about how we register the land in the land register.

According to the notary, there are basically only 2 options for us:

1. I initially register myself alone in the land register. Before we build, we get married (which we intend to do anyway) and after the marriage I have my wife registered in the land register with equal shares (this way we do not have to pay GES anymore, which we would have to pay if we were not yet married)

If I understood correctly, this offers the advantage that it is currently the simplest solution, as there is no need to worry about a partnership agreement and a possible division in case of separation. We both agree anyway that I can keep the land in case of separation, since I come from the town.

Disadvantage, for the later change in the land register additional costs will be incurred at the notary and land registry office (however, no GES since married)

One question about this: What is then the basis for assessing these costs? Only the current purchase price (we buy from a private party and have a separate development contract, so the GES and other ancillary costs only apply to the actual purchase price)?

Or is the current equivalent value (i.e. purchase price + development costs + possible appreciation of the land) the basis for assessment?

Furthermore, it would also have to be regulated in a will that the land passes to my girlfriend in the event of my death. Does this cause possible additional notary costs or can a will between non-married partners also be valid without notarization?

2. My girlfriend and I form a GbR in which we are both registered as partners with equal shares. This GbR is then entered in the land register. Then we would have to arrange everything already now as to what happens in the event of death or separation.

Advantage, according to the notary, all these arrangements can be made without notarization and you are quite flexible. Also, forming such a GbR is no problem.

Costs would then arise only in the event of separation, if one of us registers the land alone in their name.

Psychologically, I also find this option nicer, because then the land belongs to both of us equally right from the start and not only to me. After all, it is a joint project.

I hope I have explained the matter reasonably clearly. We would appreciate answers to the questions already posed above as well as the following questions,

1. Which option do you think is the most sensible?

2. Is it difficult to formulate such things yourself?
The notary honestly told us that he could draw up a GbR and also a partnership agreement combined with a will, but that would all cost money again.
Especially for such a simple regulatory need, there are plenty of standard contracts on the internet that can be optimized according to one’s own requirements if necessary.

Many thanks and best regards

Why don't you simply buy the property together? The land register and the community property of accrued gains rule initially have little to do with each other.

that's how it is :)

and regarding the will: as long as the property is heavily in debt, no one wants to inherit it anyway. without a marriage, the partner is considered a stranger and is treated very badly in terms of inheritance. if one inherits half of the other, horror inheritance taxes apply.

a wedding is really a good idea. financially, you are already married with a house anyway.

Complicated things cost money ;)

Just a question: where does the 100000 for the property come from? The land register entry should depend on that.

Regards, Yvonne

Buy together and register. If the 100k is taken as a loan and only runs in your name, the actual purchase is not a problem. Many [too complex with GBr and co]

First of all, thank you very much for the answers

Why don’t you just buy the property together? Land register and gain sharing rules initially have little to do with each other.

Buy together and register. If the 100k is taken as a loan and only runs in your name, the actual purchase is no problem. Many make it too complicated with GBr and co

One question: where do the 100,000 for the property come from? The land register entry should depend on that.

A little equity comes from me, the rest will be financed.

And that was exactly the problem so far. From a tax perspective, we are strangers. If I am the sole borrower now and register my girlfriend in the land register, it is as if I am giving her half of the property as a gift (€50,000). Everything that exceeds the allowance of €20,000 per 10 years must be taxed (gift tax would be a considerable four-digit amount).

But after consulting with the banks, the terms do not change if my girlfriend becomes an additional borrower.

So it will probably come down to this: Both in the land register, both borrowers, and then security through a notarized partnership agreement in combination with a will.