Tax optimization when buying real estate
Hello,
I intend to buy a condominium as a capital investment (purchase price 90,000 euros, purchase costs approximately 5,000 euros).
The seller wants to continue renting out the condominium for the next 2 (up to a maximum of 4) years; we have already agreed on a rent (net cold rent approximately 480 euros per month = 5,760 euros per year).
My question is whether the following train of thought is tax-efficient (realization of a larger annual loss for tax optimization) and, above all, legally allowed:
Question 1.
Could the seller and I reduce the purchase price from, for example, 90,000 euros to 88,800 euros, if at the same time I as the future tenant simply agree with the seller to a lower net cold rent (25% below the local average is allowed) of, for example, 430 euros for the next two years?
In the end, it would be a zero-sum game for both of us, because the lower net cold rent would correspond exactly to the reduction in purchase price (24 months x 50 euros = 1,200 euros)
From a tax perspective, it would be particularly advantageous for me, as the two sample calculations in the attachment show.
Is my consideration tax legally allowed (and if so, how low could I go with the reduced net cold rent?) or could this lead to the nullification of the purchase contract, as I would also save on real estate transfer tax through this trick, which could be criticized by the tax office as "manipulation"?
Note: Even 430 euros NCM (instead of 480 euros) would not be uncommon for the location - only if I demand a significantly higher rent from a new tenant after two years, the tax office may wonder why I asked for relatively little before.
Question 2:
At which point in time do the purchase costs become tax effective? Completely in the year of purchase or spread over several years?
Question 3:
Do you have any other legal ideas from a tax perspective to reduce my profit from renting out the apartment?
Thank you for answering the questions - especially question 1 is important to me.
