Real estate transfer tax

Hello!

My girlfriend and I are currently in negotiations with a real estate company.

We would conclude a contract for work and services with this company, which is tied to the acquisition of a specific plot of land.

However, the plot of land itself is not owned by this company but will be purchased by us separately. However, a broker's commission is payable to the real estate company.

The land purchase will be carried out after the contract for work and services has been concluded.

The real estate company is not a traditional property developer. The company provides an architect and tenders the individual trades as well as the site manager. Throughout the entire construction project, we remain the clients. We also decide which of the craftsmen participating in the tender will be awarded the contract. It would also be possible for us to name our own companies.

We have already researched online when we have to pay the property transfer tax in this case but have come to contradictory results. The real estate company told us that the tax would only apply to the land in this case...

Can you give us an answer on this?

Thank you very much in advance!

Best regards,
Marcel

With such offers, it can quickly happen that you pay the 5% tax on the total price... so be careful what is stated in the contract.... if necessary, have it reviewed by a lawyer.

Hello Marcel,

My girlfriend and I are currently in negotiations with a real estate company. We would conclude a contract for work and services with this company, which is tied to the acquisition of a specific plot of land.

However, the plot of land itself is not owned by this company but will be purchased separately by us. Nevertheless, a brokerage fee is due to the real estate company.

This clearly establishes that there is an economic connection and taxes on the house and land are due!

@ Britta78

I will leave your "assistance" uncommented, but I want to point out that the tax offices also research on the internet and they will find more than just tax-related matters in your response!

Best regards

First of all, thank you very much for the answers so far!

@Bauexperte: Unfortunately, your assessment also corresponds to my expectations / fears. Annoying, as the aforementioned real estate company assured us that the tax only applies to the land. I am very curious to hear what the gentlemen have to say about this.

In another thread, a user wrote that the real estate transfer tax would only apply to the land because you remain the builder yourself. Could that still make a difference? To me, this comment doesn't make sense at first...

Regards,
Marcel

Good plots of land are scarce here, and therefore many plots are only available in conjunction with a house contract. I find this unacceptable and wish the legislator would intervene. Almost all of the companies contacted also gave me a very shady impression. We were also told that property tax applies only to the land, but it can definitely be different, as you can often read on the internet. It does make a difference whether I pay 5% on 110,000 or on 360,000.

Hello Marcel,

In another thread, a user wrote that the real estate transfer tax would apply exclusively to the land because you remain the builder yourself. Could that still make a difference? To me, this comment doesn't make sense at first...

Unfortunately, this is – as so often – dangerous half-knowledge :rolleyes:

You only have to pay RETT if there is no economic connection between the land seller and the contractor. If you didn’t have to pay a broker’s commission, the situation would look quite different.

Annoying, since the aforementioned real estate company assured us that the tax only applies to the land. I’m very curious to hear what the gentlemen have to say about that

If they are so sure, they will probably give you this statement in writing or reimburse you in the worst case?

Best regards