The tax office wants to know how we are financing our construction project

Didn't know the questionnaire either.... Haven't had many clients building yet: Off the top of my head:

Gifts that must be declared
Private loans, whose interest is taxable
Foreign accounts, which are currently often being closed and depleted
Received black money from self-employed / commercial especially part-time activity

Theoretically all correct, but if you believe the information given by the OP (which I do), then we're talking about 15% equity on an estimated construction sum including land of €400K, i.e. €60K equity. This is with two people in their mid-30s who have been employed by the same employer for 10 years.

The letter is therefore only to be considered absurd in view of the individual case or is either a standard letter that everyone receives or due to ignorance or overzealousness of a newcomer at the tax office.

Best regards
Dirk Grafe

Theoretically everything is correct, but if you believe the information given by the OP (which I do), then we are talking here about 15% equity in a total estimated construction sum including land of €400,000, therefore €60,000 equity. All this with two people in their mid-30s who have been employed by the same employer for 10 years.

The letter can therefore only be considered absurd with regard to the individual case, or it is either a standard letter that everyone receives or the result of ignorance or over-eagerness of a rookie at the tax office.

Best regards
Dirk Grafe

If I have not overlooked anything, the caseworker (CW) at the office only sees the purchase contract. He knows nothing about financing and nothing about equity. Especially if no capital income has been declared so far and no saver’s allowance has been applied for, the CW’s inquiry is only a sign of careful processing of the case.

Is this always being checked? I don't remember something like that, but it could be that I have forgotten it ...

Best regards
Dirk Grafe

Is that always asked? I don't remember something like that, but it could be that I forgot ...

Best regards
Dirk Grafe

Actually, this should always be done when the presented facts are not conclusive...

For example, no capital income may have been declared so far and the caseworker had wondered how someone could buy and develop a property without equity with relatively low income.

Actually, this should always be done when the presented facts are not conclusive...
.

Hello merlin

I wonder whether the buyer even has to/should respond at all to such a question. He is buying a property. The financing is secured. Why is the tax office asking questions about the financing? Obviously, there are no reliable indications of any irregularities.
After I bought the property, I also received a strange letter from the tax office. They asked me what I planned to do with the property. When I asked on what legal basis the question was based, I was told that if I did not answer, a decision would be made "based on the files." Of course, I did not answer the question. I never heard anything more about it. The people at the tax office seem pretty eager. Without any evidence.

Steven

I find it a bit surprising that this already "stands out" when buying the property. If someone buys a new house out of the blue, okay, then you might ask where the money suddenly comes from. But account movements or money laundering are also monitored – you can't just go to a general contractor and lay €250,000 in cash on the table without someone getting suspicious.

With today's mini interest rates, for example on building savings contracts, there is hardly any capital gains tax to be made. Moreover, it is not uncommon to receive subsidies from parents, and there are also people who simply hoard cash and/or buy gold or other tangible assets.

On the other hand, in the present case, it's harmless, the money or financing is obviously completely legal. So fill it out and let it rest again.

Best regards
Dirk Grafe