Germany Fiscal Court Clarifies Treatment of Real Estate Transfer Tax Regarding Partnership Interest Transfers

The German Federal Fiscal Court April 2 posted online Decision No. II R 9/23, clarifying the treatment of real estate transfer tax (RETT) regarding partnership interest transfers, transferred from trustees to settlors upon a trust’s dissolution. The taxpayer, a real estate-owning general partnership, was established by a trust agreement, which specified that the trustees would hold the partnership shares in the trust for the settlors. The taxpayer sought confirmation that the transfer of partnership shares upon the trust’s dissolution was exempt from RETT. On appeal, the Federal Fiscal Court found that: 1) the transfer of partnership interests from trustees to ...