Sale of property after gratuitous transfer to children no ab ...

If the taxpayer has arranged for the sale of a property to a third party, there is generally no abuse of tax law (abuse of legal forms) if the property was initially transferred to the children free of charge and subsequently sold by the children to the ultimate buyer. According to the decision of the Supreme Tax Court the capital gain is subject to income tax in the hands of the children based on their individual income tax situation.

VAT: No permanent establishment in case of property rental

The European Court of Justice (ECJ) ruled that the reverse charge is applicable to the leasing of real property located in Austria because the Jersey based lessor, in lieu of own local staff to perform services relating to the letting, does not have a permanent establishment (fixed place of business) in Austria.

ECJ referral on 10% inheritance tax exemption for real prope ...

In a 2021 ruling, the Regional Tax Court of Cologne asked the European Court of Justice (ECJ) for a preliminary decision on the inheritance tax valuation of a developed private property located in Canada. The reason for this is the different treatment of similar property either located in Germany, or in an EU Member State or in a state of the European Economic Area (EEA).

Failure to relieve loss on sale of property abroad does not ...

The ECJ has held that the denial of relief in a member state of residence for a loss made on the sale of property in another member state is not an unjustified restriction on the free movement of capital.

Houseboat at a permanent mooring can be immovable property

The ECJ has held that a permanently moored houseboat used as a restaurant can be let free of VAT as immovable property.

Interest of British property LLP taxed in Germany as interes ...

The Supreme Tax Court has held that the interest income of a German-owned limited partnership in England is taxable in Germany as interest, and not exempt as trading income. The capital gain on the sale of the property is not exempt as taxable in the UK, merely because of the capital allowance claw-back.

Waiver of VAT exemption on property rentals can be by room

The Supreme Tax Court has held that the VAT exemption waiver on property rentals presupposes that the tenant can clearly separate the area used for taxable turnover from that used for tax-free activity, but the separation does not have to be documented by separate contract.

Non-resident entitled to deduct annuity from related income

The ECJ has held that a non-resident with German property income must be entitled to deduct the cost of an annuity if the annuity would not have been paid without the acquisition of the property.

Capital gain holding period runs to date of binding agreemen ...

The Supreme Tax Court has held that the ten-year holding period for exempting a gain on sale of privately held property runs to the date the agreement to sell the property is binding on both parties regardless of any as yet unfulfilled condition subsequent.

Permanently moored houseboat to be let as property

The finance ministry has amended its VAT Implementation Decree to follow an ECJ ruling that a permanently moored houseboat is to be let as a property.

No input tax deduction if taxable output not anticipated

A property developer acted free of charge for the local authority in an effort to increase the sales value of his property. His input tax was not deductible, even in the light of his expectation of ultimate benefit.

Rental income of foreign residents

The finance ministry has issued an explanatory decree for foreign businesses following a change in the law reclassifying their income from German property from rental to trading income.

不動産税（Grundsteuer / Property (Real estate) tax）の改正

German Constitutional Court ruling on property valuations fo ...

On 10 April 2018, the German Constitutional Court pronounced as unconstitutional the provisions on the valuation of property for the purposes of real estate tax and demanded new regulations

No trade tax double dip within Organschaft

The Supreme Tax Court has refused an Organschaft subsidiary the trade tax property company exemption because it only let within the Organschaft.

Real estate transfer tax on share accumulation is an immedia ...

The Supreme Tax Court has settled a long-standing dispute within the profession on the capitalisation or immediate write off of the real estate transfer tax payable when at least 95% of the share capital of a property-owning company is accumulated in one hand.

Option for VAT on sale of real estate

The finance ministry has accepted an option for VAT on the sale of a business property expressly agreed only for the event that the view of the parties of the transaction as a (VAT-free) sale of an entire business should prove to be unfounded.

No VAT exemption for heat supplies provided by homeowners' a ...

The European Court of Justice (ECJ) held that the supply of heat by a homeowners' association to its members, the residential property owners, is subject to VAT. Accordingly, the proportionate input VAT allocable to the acquisition and operation costs of the heat generating power plant will be deductible. The case was referred to the ECJ by the Lower Tax Court of Baden-Wuerttemberg.

Purchase of land by trustee and transfer of exploitation rig ...

The Supreme Tax Court, in a most recent decision, has again stated that in the case of the purchase of a property from a third party, which is held by a trustee for the trustor as the subsequent acquirer of the site, real estate transfer tax will arise twofold.

Capital transfer tax not precluded by Sixth Directive

The ECJ has held that a Spanish transfer tax on the purchase of shares in a property-owning company is not similar to VAT and is therefore not precluded by the tax duplication prohibition of the Sixth Directive.