actual purchase price higher
March 9, 2011 | 20,00 EUR | answered by StB Kiehne Katja Kiehne
I am buying a house (for personal use) for 170,000 euros. In the sales contract, 130,000 euros are specified (40,000 euros to be paid after the notary appointment). So, I am saving some real estate transfer tax. I am in tax class 1 and have an annual gross income of 60,000 euros. Is it worth it?
Dear inquirer,
In the context of an initial consultation and considering your fee commitment, I will answer your question as follows:
If you carry out the transaction as described, you are evading real estate transfer taxes. Because you are intentionally keeping the tax office unaware of the actual purchase price in order to evade taxes. Tax evasion according to § 370 of the Tax Code is a tax offense. Assuming a real estate transfer tax rate of 3.5% (varies by state), you would be evading taxes in the amount of €1,400 (3.5% of €40,000).
Best regards,
Katja Kiehne
Tax advisor
Master of Business Consulting (M.BC.)
Dipl.-Finanzwirtin (FH)
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