Germany’s Upper House Backs Tighter Rules on Real Estate Tax

May 7, 2021, 5:47 PM

The Bundesrat, the upper house of the German Parliament, on Friday approved a law curbing real estate arrangements that allow investors to avoid taxes.

The measure would reduce from 95% to 90% of the property value that is allowed to be transferred into shares. The new law also extends the holding period to 10 years from five.

  • The transfer tax, normally levied when a property is sold, is avoided when the property value is converted into shares.
  • The Bundesrat said in a release that such practices resulted in considerable tax losses for the German states. Real estate transfer tax rates ...

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