The residential nonprofit abolished in 1990 is to be reintroduced into German tax law with the Annual Tax Act 2024 (JStG 2024). Specifically, the Federal Government is planning an adjustment of § 52 AO. According to the amendment, certain companies constructing and/or renting apartments will be exempt from taxation. A prerequisite for this, however, is that they are non-profit-making in the sense of the tax code. What this means in concrete terms, we show here!
1. The “old” residential charity – this applied until 1990
Already in 1847 the first non-profit housing companies were founded in Germany. Even then, the focus of the business was to award housing particularly cheaply to socially needy people. With the further development of the Housing Non-profit Act (WGG), the legislature has laid down further conditions and provisions until the provisional abolition in 1990:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.