Germany Fiscal Court Clarifies Requirements for Reversing Real Estate Transfer Tax in Joint-Purchaser Transactions

The German Federal Fiscal Court April 2 issued Decision No. II R 24/23, clarifying the requirements for reversing real estate transfer tax (RETT) in joint-purchaser transactions. The taxpayer, an individual, jointly acquired a property with her partner. Following their separation, a notarized agreement released the taxpayer, with the co-purchaser assuming her obligations and completing the acquisition. The Tax Office denied cancellation of the RETT assessment, treating the arrangement as a change of purchaser rather than a reversal of the acquisition. On appeal, the Federal Fiscal Court found that: 1) joint purchasers acquire a single, indivisible civil-law claim to the transfer ...