Rising costs and interest rates make it difficult for families to buy an apartment or house. That is why the federal and state governments are considering a reform of the real estate transfer tax. Buying a property for self-use could become significantly cheaper as a result.
The finance ministries of the federal and state governments are examining a reform of the real estate transfer tax that would allow the states to make the private purchase of real estate for their own use better – up to and including tax exemption.
High construction costs and interest rates are now making it “almost impossible for families to buy property,” Finance Minister Christian Lindner tweeted. “We should therefore give the federal states the legal opportunity to waive the real estate transfer tax for owner-occupied real estate.”
The “Frankfurter Allgemeine Zeitung” (FAZ) initially reported on the plans, citing a discussion draft from the Ministry of Finance. This therefore provides the federal states with a great deal of leeway when buying a house or condominium privately. The only condition would be that they would be used for their own residential purposes. According to this, the countries could offer, among other things, a reduced tax rate or even a tax waiver.
change of rules real estate companies
At the same time, a change in the rules is planned, with which the evasion of the tax with the help of real estate companies should be prevented, reported the “FAZ”. After that, the draft discussion proposes no longer to go by how many shares in a company are bought and how long they are held, but whether an individual buys all the shares or a group “jointly” buys them. If other purchasers are only involved in the “serving interest”, their shares should be attributed to the others.
The federal states are entitled to the revenue from the real estate transfer tax of currently around 17 billion euros. They can decide for themselves on the tax rate.
In Bavaria it is 3.5 percent, in the other federal states it is between 5.0 and 6.5 percent. The owners’ association Haus & Grund Hessen welcomed Lindner’s initiative. The association has long advocated a reduction or waiver of the tax.