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German government to abolish tax advantages on share deals REFIRE Comment
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- Investering
In response to a request on the part of Germany’s Alliance ’90 and Green Party, the German government has said that proposed solutions will be presented at the Finance Ministry’s conference on 19 October this year.
The property transfer tax has been the subject of heated debate in Germany, because while private individuals have no choice but to pay it when they buy a home, many companies dodge it by availing themselves of share deal exemptions when they buy properties. It is estimated by the German government that of all the residential portfolios comprising more than 800 units transacted between 1999 and 2016 in Germany, share deals were used in 71% of cases. In 35% of deals, buyers acquired less than 95% of shares but in 36% of deals, they actually acquired more than 95% of shares, according to the German government.
In response to a request on the part of Germany’s Alliance ’90 and Green Party, the German government has said that proposed solutions will be presented at the Finance Ministry’s conference on 19 October this year.
The property transfer tax has been the subject of heated debate in Germany, because while private individuals have no choice but to pay it when they buy a home, many companies dodge it by availing themselves of share deal exemptions when they buy properties. It is estimated by the German government that of all the residential portfolios comprising more than 800 units transacted between 1999 and 2016 in Germany, share deals were used in 71% of cases. In 35% of deals, buyers acquired less than 95% of shares but in 36% of deals, they actually acquired more than 95% of shares, according to the German government.
4 min