Real estate transfer tax

Hello Der Da,

Good plots of land are scarce with us, and therefore many plots can only be obtained in conjunction with a house contract. I find this unacceptable and wish the legislator would intervene here.

He already has to some extent – why do you think many municipalities require builders to wait half a year between purchasing the land and starting construction? Besides, there is usually the option to buy a plot through the municipality or a real estate agent; then no GEW applies.

Because almost all the companies contacted also gave me a very shady impression. They also told us that property tax applies only to the land, but it is often read on the internet that this can be different. It makes a difference whether I pay 5% on 110,000 or on 360,000.

Again – GEW only becomes due if there is an economic connection between the land seller and the building contractor.

I currently have an option on a plot from a private person in D´dorf; in other words, I alone can offer it for the purpose of development. BUT – I do not demand any broker commission and there is no other economic connection between the seller and me! We are only temporarily "linked," if you will, and therefore GEW applies only on the plot itself.

Kind regards

You only have to pay GEW if there is no economic connection between the property seller and the construction company.

Kind regards

Does it make a difference that our real estate company is not a traditional construction company / developer but rather something like a service provider who appoints the architect for us, while the actual craftsmen and the construction manager are tendered? Which craftsman is ultimately entrusted with which trade is then our decision. We could even suggest our own craftsmen who have not participated in the tender.

Thank you!!

Hello,

Does the fact that our real estate company is not a traditional construction company / developer but rather something like a service provider who provides us with the architect, while the actual craftsmen and the site manager are tendered? Which craftsman is ultimately entrusted with which trade is then our decision. We could even suggest our own craftsmen who did not participate in the tender.

No.

You buy the land through the real estate company, pay the broker's commission, and use the services of their architects for your construction project.

"The ECJ ruling confirms the increasing tendency to subject the entire object to real estate transfer tax. Based on the tightened case law by the BFH (e.g. ruling of 23.8.2006, II R 42/04, BFH/NV 2007 p. 760 and decision of 2.4.2009, II B 157/08, BFH/NV 2009 p. 1146), tax offices increasingly include the value of the consideration according to § 9 para. 1 no. 1 Real Estate Transfer Tax Act of land plus the subsequently constructed building, so there is an increasing taxation of the turnkey work.

A separate treatment and thus tax only on the land is _only_ considered if the new owner looks for a suitable construction company themselves and there is no connection to the seller of the land.​"


Kind regards

Honestly, stay away from this company. Just think about it, if you had a property, would you first have to sell the property to the company? I have never heard of something like that.

But the property tax is always due on everything. Since the house is connected to the property, it is on the total amount.
Regards Heiner

The Lower Saxony Fiscal Court has apparently decided in favor of the builders for the second time (see second link below).

Then the matter was referred to the Federal Fiscal Court:

BFH Pending case, II R 7/12 (entered into the database on 20.4.2012)

Assessment basis of real estate transfer tax - unified contractual framework:

1) Are the building construction costs to be included in the assessment basis for determining the real estate transfer tax in addition to the purchase price for land (unified contractual framework)?
2) Is a constitutional violation to be seen in the unequal treatment that future building construction costs subject to value-added tax are additionally subject to real estate transfer tax?

-- Admission by FG --

Appellant: Administration

Real Estate Transfer Tax Act § 1 para 1 no. 1; Real Estate Transfer Tax Act § 8 para 2 sentence 2; Real Estate Transfer Tax Act § 9 para 1 no. 1; VAT Act § 4 no. 9a; Basic Law Art 3 para 1

Prior: Lower Saxony Fiscal Court, decision of 26.8.2011 (7 K 192/09, 7 K 193/09)

Regards Sascha