With the law for the change of the GrEStG of 12.05.2021 abusive tax arrangements are to be prevented by different individual measures. As a reminder, if a company owns real estate and only the company shares are sold, no real estate transfer tax was previously due if no more than 94.9% of the shares in a real estate-owning company changed hands. This is called the participation threshold. As a result of the amendment, this participation threshold has been lowered from 95% to 90% in Sec. 1 (2a), (3) and (3a) GrEStG. Furthermore, all acquisitions within a period of ten years (instead of 5 years previously) are included in the determination of the shares transferred. The new regulations will generally apply to acquisitions and transfers that take place after June 30, 2021. However, share transfers or even share movements in the last 10 years prior to the change in the law will be counted.

If you have any further questions about this, especially about a possible tax exemption when transferring from an owner to a partnership, please call us. We will be happy to advise you.

Claudia Frank

Specialist in tax law