Tax & Legal

The Supreme Tax Court decided that the transfer of real estate from a community of heirs to a partnership in the context of the division of the estate is exempt from real estate transfer tax up to the share in which a co-heir participates in the acquiring partnership. The tax exemption does not apply if the co-heir's share in the partnership decreases within five years following the transfer.

In a case of the sale of property belonging to the estate of an association of co-heirs the Supreme Tax Court held that the acquisition for consideration of a joint shareholding is not equivalent to the direct pro rata acquisition of the inherited assets themselves. With this most recent judgment the Supreme Tax Court abandons its previous case law on the matter.

An ECJ advocate general has suggested the court extend its earlier rulings against lower personal allowances to heirs in other member states to residents in third countries.