Conversion operations generally trigger the real estate transfer tax if a property is transferred to another legal entity (for example from a partnership to a limited company). However, with the so-called group clause of § 6a GrEStG, taxation can be avoided. However, it should be noted that there are comparatively strict conditions for the application of the clause.
First principle of the group clause: tax liability of conversion operations
§ 1 GrEStG regulates which acquisition transactions are subject to the real estate transfer tax. In addition to purchase contracts for immovable property, these are also conversion and other legal processes in which a property is
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.