Property acquisition tax in a linked shell construction contract

Hello everyone!

If the land purchase and house construction are contractually linked in any way, the real estate transfer tax is levied not only on the land value but also on the house construction contract.

That quickly adds up to €15,000 in additional costs that bring no equivalent value.

What happens if a house construction contract for a shell construction is linked to the land purchase and the further trades are freely selected only after the land purchase?

Is the real estate transfer tax then due only on the land purchase and shell construction or on the land price plus the entire house construction costs?

Thanks in advance for the answers and best regards

jx7

It depends on from whom you buy what.

Please describe your situation, then it might be possible to narrow it down a bit.

There are situations where only the property counts, and there are situations where everything counts completely.

Please provide more details of your project who when with whom what...

The seller of the property is a GmbH, which formally has nothing to do with the shell construction company.

A construction company, from which the GmbH surely receives a commission, would already be arranged by the GmbH. This construction company either offers the shell construction or the turnkey house construction in the form of a general contractor/contractor (GU/GÜ).

The GmbH's requirement is that only mirror-symmetrical twins should be built for the semi-detached houses. Upon purchase of the property, a corresponding contract is to be concluded that defines the mirror symmetry. However, we do not yet know the exact form of this contract.

Now we fear that, contrary to previous expectations, the real estate transfer tax will apply not only to the land but also to the house construction. We originally wanted to build turnkey, but if we can reduce the real estate transfer tax by initially commissioning only the shell construction, that would also be an option.

Purely formal? And how is it in practice? Aren't they connected or do they just collude with each other?

Google "versteckter oder verdeckter Bauträger"... as a basis.

If you were to buy land from a third party, then the property transfer tax only applies to that. But as soon as the future house is sold along with it, the tax is also due on that price. If you then award trades to craftsmen yourself, in my opinion that no longer counts as the tax base. Invest 100-150 euros in a tax advisor who should look at it in detail if it actually gets serious.

"Hidden client model" is the keyword to google, in case anyone else is interested (See also the new topic I started.)
If there are any further opinions on the above question (real estate transfer tax only on the contracts for land purchase and shell construction concluded at the time of property sale, later self-selected and commissioned trades without real estate transfer tax), I would be happy!

Good morning,

Father State and thus his children (us) need your money ....

Actually, we wanted to build turnkey, but if we can reduce the real estate transfer tax by initially only commissioning the shell construction, that would also be an option.

That answers your question!

You initially buy only the land and the shell construction; once the shell is standing or, for example, after you have "supposedly" outsmarted the tax office, you move in. Do you really think your responsible tax office is that stupid ... ?

Rhineland regards