Real estate transfer tax - Co-owners
December 6, 2012 | 25,00 EUR | answered by StB Steffen Becker
I have acquired a plot of land in an online auction. It is intended to transfer this to my brother later. My actions were necessary for credit reasons.
The auction house offers a co-buyer as a GbR or as an acquisition in equal ideational shares.
I would like to avoid the full real estate transfer tax being incurred again when transferring full ownership to my brother later.
Which option is recommended from a tax perspective?
Thank you and
Greetings
Dear inquirer,
Thank you for your inquiry. I will answer based on the information provided by you. Missing or incorrect information can affect the legal outcome.
If the property is acquired by you and your brother as a joint venture (e.g. GbR), then real estate transfer tax (GrESt) would initially be payable by the joint venture. If you later sell your share to your brother, according to § 6 para. 2 GrEStG, no tax will be charged for the part in which your brother is already involved through participation in the joint venture.
Another option could be, without knowing the specific circumstances, that the property is acquired by your father and later sold to your brother by him. In this case, no real estate transfer tax is payable upon sale to your brother, as transfers between direct relatives are exempt from GrESt according to § 3 No. 6 GrEStG.
If this is not possible because you are the only bidder, it could be considered, if, as you describe, the acquisition by e.g. a joint venture from the auction house is approved, a joint venture consisting of you and possibly your father acquires the property; upon later selling your share to your father and then your father selling to your brother, no GrESt would be payable for the reasons mentioned above.
I hope this helps and remain
Sincerely,
Steffen Becker
-Tax Advisor-
