Sooner or later, real estate that a family holds in common or separate assets will be transferred to the next generation. Alternatively, it is often considered to sell the objects to third parties and to realize increases in value (silent reserves) in this way. However, it is particularly important to transfer the real estate as tax-free as possible. German law provides for numerous options for this.
1. Why Real Estate Should Be Transferred Tax-Free
The German tax laws provide in particular for private and commercial landlords various possibilities to transfer their real estate tax-free. However, the individual legal norms each have independent requirements, which differ in some cases considerably from the regulations in other laws. If the necessary planning in advance of the transfer is not carried out with the necessary care and/or advance, a tax-free transfer of real estate assets may not be considered.
Basically, there is a possibility in several laws to transfer real estate tax-free. These include, in particular:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.