Received mail from the tax office after buying an apartment

Hello everyone,

we recently purchased a condominium. So far, everything was fine. We paid the notice for the due date of the real estate transfer tax. Suddenly, two weeks later, we received a letter from the tax office with the subject "Ermittlung Ihrer steuerlichen Verhältnisse ( §§ 88, 93 der Abgabenordnung -AO)" asking us to fill out a questionnaire. In the questionnaire, it is asked whether we rent out or inhabit the apartment, especially since we do not yet have the apartment and have not even paid the purchase price. Amount of the total price and how the total expenses were financed, etc... Is this letter normal? What is it about?

Best regards!

I once received something similar when I bought the house for my son. I then politely informed the tax office that it was none of their business what I did with it, and that if it had any tax significance, I would of course declare it in the tax return. Nothing ever came of it.

It is an investigation ex officio. You are obliged to provide information. It is a common procedure - just not with everyone (I have never received it in my real estate life either, despite dozens of purchase contracts). Just say what the matter is and that’s it. was straightforward. It may also work with the appropriate tax officer. Others will be more persistent (and are allowed to be).

No, they are not allowed to do that just like that.
Paragraph 93 AO: "The parties involved and other persons must provide the tax authority with the information necessary to determine facts relevant for taxation." If there are no facts relevant for taxation, I am not obliged to provide any further information. The statement that this is the case must suffice. Whether I leave the house empty, live in it myself, or let someone use it free of charge has no significance for the tax office.

I believe we also received the letter back in 2018 after the purchase. I filled out the thing, sent it back, and that was that. Do you really want to take on the [FA] because they want to know a few simple things? If they're being difficult, they'll at worst look at the last ten years of your tax history. I'm sure everyone can be found to have a “rounding error” that could be blown up into a money laundering center :-D At least for me, the potential stress wouldn't be worth it, no matter how much this “snooping” annoys me.

No, they are not allowed to do that just like that.

You can tell that you are not so deeply involved in taxes. The tax authority tries to clarify a tax-related issue through section 88 in conjunction with section 93. What issue is that, that you immediately say "No, they are not allowed to"? When purchasing real estate, this usually relates to the financing topic. Especially if it is not clear, for example from other tax documents, where the high equity comes from. And/or it is investigated randomly. Germany is, after all, a paradise for money launderers in the field of real estate because there are countless possibilities. And quite honestly, when it comes to money laundering, if a suspicion is actually pursued or generally random checks are made, you do not want to mess with the tax office and the subsequent authorities. They then quickly land at your bank – such inquiries are always answered by the legal department in our case. You also do not get any information about what it is about. Annoying? Yes. Legitimate? Yes. To be answered? Yes. In the comments to section 93, the following is also to be read (about the reason): "It is sufficient if, based on concrete moments or on general experiences, a request for information is indicated." And the general experiences are often negative, thus sufficient for the request for information. That’s a little digression.