Paying real estate transfer tax as a corporation or partnership

Real estate transfer tax generally arises when the effective legal transaction is concluded, for example the notarised purchase agreement.

In the event of a change in the shareholder structure of a partnership or corporation, the tax arises when the shares are transferred (transfer in rem according to the contract). In the case of conversions, the real estate transfer tax arises upon entry in the commercial register.

Notaries, courts and authorities or the respective contracting parties must inform the relevant tax office of the share purchase or other legal transactions subject to real estate transfer tax.

The tax debtor pursuant to Section 13 GrEStG also has notification obligations pursuant to Section 19 GrEStG for corporate transactions subject to real estate transfer tax.

The competent authority then checks whether a real estate transfer taxable event has been realised.

The tax office responsible for the valuation of the property will ask you to submit a declaration of assessment to determine the value of the business property. It will inform the competent office of the result of the assessment, the land value.

You will then receive a real estate transfer tax assessment from this office.