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Real estate transfer tax

December 16, 2009 | 20,00 EUR | answered by Matthias Wander

A Portuguese Lda (A) owns properties located in Germany.
A establishes a GmbH (B) in Germany and is its 100% shareholder.
A contributes the properties to B.
Question: Is real estate transfer tax to be paid?

Matthias Wander

Dear questioner,

Thank you for your inquiry, which I would like to answer based on the information provided in an initial consultation.

The transfer of a property located in Germany to a GmbH is subject to real estate transfer tax, as the ownership of the property is being transferred (§ 1 para. 1 no. 1 GrEStG). The basis of assessment (§ 8 para. 2 no. 2 GrEStG) is the property value determined according to § 138 para. 2-4 BewG.

I hope this gives you a first overview.

Kind regards,
Wander
Tax consultant