Paying real estate transfer tax
Source: Zuständigkeitsfinder Schleswig-Holstein (Linie6Plus)
Service Description
If you carry out a legal transaction relating to a domestic property, this is subject to real estate transfer tax.
If you carry out a legal transaction relating to a domestic property, this is subject to real estate transfer tax.
If, for example, you acquire a plot of land by purchasing it, you will be subject to real estate transfer tax unless the transaction is exempt from real estate transfer tax.
However, it is not only the purchase of land that triggers real estate transfer tax. An exchange of land, the highest bid, the assignment of rights of a transfer claim, the acquisition of the power of sale, the at least 95% change in the marital status of a company as well as the unification of shares and the transfer or sale of already unified shares in a company, etc. are also transactions subject to real estate transfer tax.
Under certain conditions, acquisition transactions are exempt from real estate transfer tax. For example, if you acquire a property from your spouse or partner or from someone to whom you are related in a direct line, this acquisition is exempt from real estate transfer tax. The acquisition of a property belonging to the estate by co-heirs to divide the estate or the acquisition of a low-value property (purchase price less than €2,500) is also exempt from real estate transfer tax.
The assessment basis for the real estate transfer tax is the value of the consideration. In the case of a purchase, this is the purchase price. In addition, there may be, for example, the assumption of encumbrances or the granting of residential/usage rights.
If you acquire an undeveloped plot of land and, in addition to the purchase contract, conclude a construction contract for the erection of a building on the acquired plot of land with the seller or a third party associated with the seller personally, economically or through agreements, established case law regularly defines this as a so-called uniform contract for the purposes of real estate transfer tax. In this case, the real estate transfer tax is then calculated not only on the purchase price for the property itself, but also on the construction costs.
Each country determines the tax rate itself. The tax rates currently range between 3.5% and 6.5% in the individual federal states.
Real estate transfer tax is regularly owed by the parties involved in a purchase transaction. In the case of a purchase contract, you are liable for the property tax, regardless of whether you are the buyer (purchaser) or the seller (vendor) of the property. In many contracts, however, it is agreed that the purchaser must pay the land transfer tax. In these cases, the tax office will send the tax assessment to the purchaser first. However, if the purchaser does not pay the tax, the tax office can also demand the tax from the seller.
Teaser
If you carry out a legal transaction relating to a domestic property, this is subject to real estate transfer tax.
Process flow
If you have acquired the property by notarial, court or official deed, the notary, court or authority will notify the tax office of this property transfer, enclosing a certified copy of the deed. In all other cases, you and your contractual partner are obliged to report the contracts or agreements to the tax office.
The tax office will then assess the real estate transfer tax against you or your contractual partner by means of a tax assessment notice or will determine the tax exemption.
Once the land transfer tax has been paid in full, the tax office will send the certificate of non-objection to the notary (in the case of tax exemption, the certificate of non-objection will be sent immediately).
As part of his notarial obligations, the notary will apply for your entry as owner in the land register.
Who should I contact?
Competent authority
The tax office responsible for your purchase transaction is usually the tax office in whose district the property in question is located.
In many countries, however, the real estate transfer tax offices are centralized in certain tax offices.
Requirements
If you have realized a legally effective acquisition transaction for a property, this is subject to taxation.
Which documents are required?
If you are obliged to notify the tax office (e.g. when purchasing buildings on third-party land), please submit the private contracts or agreements to the tax office.
In all other cases, the tax office may ask you to submit further documents (e.g. concluded building or general contractor agreements, proof of the value of land charges entered in the land register).
What are the fees?
- none;
- it is a tax payment; further costs only arise in the event of late notification (see: § 19 GrEStG - late payment surcharge) or late payment or non-payment (e.g. late payment surcharges).
Please contact your tax office for permissible payment methods.
What deadlines do I have to pay attention to?
- Deadline for fulfillment of the notification obligation of the parties involved: 2 weeks after knowledge of the notifiable transaction
- Deadline for payment of the real estate transfer tax: one month after notification of the tax assessment notice
Legal basis
§§ 1,3, 9, 11, 14, 15, 17 to 22 Real Estate Transfer Tax Act (GrEStG)
Applications / forms
Forms: none
Online procedure possible: no
Written form required: yes
Personal appearance required: no
If you have purchased a property, a real estate transfer tax will be payable unless there is a tax exemption.
Author
The text was automatically translated based on the German content.
