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Germany Advances Proposal to Curb Property Tax Avoidance

April 15, 2021, 2:59 PM

The German Parliament’s Finance Committee has moved to curb property tax avoidance that employs indirect transfers.

In a measure approved by the committee Wednesday, lawmakers agreed to reduce to 90% the property value transferred in share deals that triggers the tax over 10 years.

The proposal will now go to Parliament for a vote.

  • The transfer tax is applied on any transfer of a property to a new owner. Some buyers and sellers avoid part of the levy by only exchanging shares in a company that holds the property assets.
  • The rules currently allow taxpayers to avoid transfer tax ...

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