{"id":8304,"date":"2023-03-31T14:00:00","date_gmt":"2023-03-31T12:00:00","guid":{"rendered":"https:\/\/honert.de\/?p=8304"},"modified":"2023-03-31T15:40:17","modified_gmt":"2023-03-31T13:40:17","slug":"new-real-estate-transfer-tax-pitfalls-in-share-deal-transactions","status":"publish","type":"post","link":"https:\/\/honert.de\/en\/new-real-estate-transfer-tax-pitfalls-in-share-deal-transactions\/","title":{"rendered":"NEW REAL ESTATE TRANSFER TAX PITFALLS IN SHARE DEAL TRANSACTIONS"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-hy2phv-0fb3ef1940c275c151447f2e0e43d397\">\n.avia-section.av-hy2phv-0fb3ef1940c275c151447f2e0e43d397{\nbackground-repeat:no-repeat;\nbackground-image:url(https:\/\/honert.de\/wp-content\/uploads\/3629.jpg);\nbackground-position:0% 0%;\nbackground-attachment:scroll;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-hy2phv-0fb3ef1940c275c151447f2e0e43d397 main_color avia-section-default avia-no-shadow  avia-builder-el-0  el_before_av_section  avia-builder-el-first  hide_on_print avia-full-stretch avia-bg-style-scroll av-minimum-height av-minimum-height-40 av-height-40  container_wrap sidebar_right'  data-section-bg-repeat='stretch' data-av_minimum_height_pc='40' data-av_min_height_opt='40'><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-8304'><div class='entry-content-wrapper clearfix'>\n<\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='av_section_2'  class='avia-section av-f7m1gz-9bf2ba1967acc2309a73eb39b13a84e9 main_color avia-section-default avia-no-shadow  avia-builder-el-1  el_after_av_section  avia-builder-el-last  avia-bg-style-scroll container_wrap sidebar_right'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-8304'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-dn8ahf-04053d12de1bfb8461749d5949051436\">\n.flex_column.av-dn8ahf-04053d12de1bfb8461749d5949051436{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-dn8ahf-04053d12de1bfb8461749d5949051436 av_two_third  avia-builder-el-2  el_before_av_two_third  avia-builder-el-first  first flex_column_div av-zero-column-padding  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lfwkjmng-529b33dea6aa469d38dea182a10c2c47\">\n#top .av-special-heading.av-lfwkjmng-529b33dea6aa469d38dea182a10c2c47{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-lfwkjmng-529b33dea6aa469d38dea182a10c2c47 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-lfwkjmng-529b33dea6aa469d38dea182a10c2c47 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-lfwkjmng-529b33dea6aa469d38dea182a10c2c47 av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  avia-builder-el-no-sibling '><div class='av-subheading av-subheading_above'>31. March 2023\n<\/div><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >NEW REAL ESTATE TRANSFER TAX PITFALLS IN SHARE DEAL TRANSACTIONS<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-cmcwzn-d19e926c93cbb17172a87181ee1781de\">\n.flex_column.av-cmcwzn-d19e926c93cbb17172a87181ee1781de{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-cmcwzn-d19e926c93cbb17172a87181ee1781de av_two_third  avia-builder-el-4  el_after_av_two_third  el_before_av_two_third  first flex_column_div av-zero-column-padding  column-top-margin'     ><section  class='av_textblock_section av-lfwkk85o-206b7d216aa72dcc3adf742ab15e5d5d '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>If the signing and the closing of the share deal occur at different times, the tax authorities consider that there are two transactions that are each subject to real estate transfer tax. As a result, real estate transfer tax may be assessed more than once for one and the same transaction. According to a new procedural norm, the risk of double taxation can be avoided, if a notification has been made in due time and complete in all parts both at the signing and at the closing.<\/strong><!--more--><\/p>\n<\/div><\/section><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-a378k3-97935fd0556f04a17402b2614fc5abd9\">\n.flex_column.av-a378k3-97935fd0556f04a17402b2614fc5abd9{\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-a378k3-97935fd0556f04a17402b2614fc5abd9 av_two_third  avia-builder-el-6  el_after_av_two_third  el_before_av_one_third  first flex_column_div av-zero-column-padding  column-top-margin'     ><section  class='av_textblock_section av-lfwkmaa4-02dbfe404be6d25cad41b9175c842997 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><h2>I. Real estate transfer tax in share deal transactions<\/h2>\n<p>In the case of share deals in companies with real estate, the effects on real estate transfer tax must be examined in advance. Of central importance are the provisions of section 1 para. 2a and section 1 para. 2b German Real Estate Transfer Tax Act (<em>Grunderwerbsteuergesetz <\/em>&#8211; GrEStG). These two provisions affects the change in the shareholder structure of a company if certain threshold values are exceeded. The transfer of at least 90% of the shares in the real estate-owning partnership or corporation to new shareholders is deemed to trigger real estate transfer tax (see newsletter article from July 2021). In addition, the (economic) unification of shares in real estate companies can trigger real estate transfer tax (section 1 para. 3 or para. 3a GrEStG). Since the introduction of section 1 para. 2b GrEStG in 2021, it has been discussed whether even both standards are relevant in the case of an acquisition of shares and whether, as a consequence, real estate transfer tax can be incurred twice.<\/p>\n<h2>II. &#8220;Signing-closing&#8221; opinion of the tax administration<\/h2>\n<p>The beginning of the long-standing discussions about a potential double taxation is the controversial &#8220;signing-closing&#8221; opinion of the tax administration. According to this opinion, there are two separate transactions that are each subject to Real Estate Transfer Tax two if the signing and transfer of the shares (closing) occur at different times. Whereas at the time of signing the conditions for the unification of shares pursuant to section 1 para. 3 and para. 3a GrEStG are fulfilled, the transfer of shares at the time of closing is a second taxable event. The latter is based on section 1 para. 2a and para. 2b GrEStG, which taxes the change in the shareholder structure of a company holding real estate. Accordingly, there is an increased risk of double taxation if the signing and the closing occur at different times.<br \/>\nAaccording to the wording of the regulation, the (economic) unification of shares pursuant to section 1 para. 3 no. 2 and no. 4 or para. 3a GrEStG is expressly applicable in a subsidiary manner. As a result, the taxation must be based solely on section 1 para. 2b GrEStG. Nevertheless, the tax authorities \u2013 in contrast to all experts&#8217; opinions &#8211; assume that there are two taxable transactions. The procedural process is correspondingly complex. In the opinion of the tax authorities, a tax assessment notice is to be issued and real estate transfer tax is to be assessed at the time of signing, unless the closing is expected within one year of signing. In the case of protracted share deal transactions, several real estate transfer tax assessment notices will be issued.<br \/>\nIn the opinion of the tax authorities, it is also consequent that double taxation within the same transaction would not be justified. For this reason, the real estate transfer tax assessment notice korrigierissued at the time of the signing must be rescinded or amended. However, the legal basis on which this correction is to be made has so far remained open. Within the framework of the Annual Tax Act 2022, the legislator finally reacted to this legal uncertainty and introduced a specific procedural norm. Therefore, procedural pitfalls have to be taken into account.<\/p>\n<h2>III. New procedural pitfalls<\/h2>\n<p>In simplified terms, the newly introduced section 16 para. 4a GrEStG provides that the real estate transfer tax determined at the time of signing is to be rescinded or amended in any case if the preconditions of section 1 para. 2a or para. 2b GrEStG are fulfilled at the time of closing. It should be noted that the avoidance of double taxation is thus linked to two prerequisites:<br \/>\nNotification obligation<br \/>\nThe new procedural norm does not apply if even one of the acquisition transactions was not reported in due time and completely in all parts (section 16 para. 5 GrESG). In the event of incomplete or late notification, double taxation may therefore occur. As part of a share deal, a notification is required at the time of signing as well as at the time of closing.<br \/>\nApplication obligation<br \/>\nIn order to avoid a double taxation, an application must also be submitted. At this time, however, it is still unclear what formal requirements will be imposed on that application (form, deadline, applicant, etc.). In practice, the application should be submitted in parallel with the notification of the closing. And in some cases the applicants could be different.<\/p>\n<h2>IV. Consequences for the practice<\/h2>\n<p>In the context of share deal transactions, new procedural pitfalls must be taken into account from a real estate transfer tax perspective. In order to avoid double taxation and liability risks, it is essential to ensure that a notification has been made in due time and complete in all parts both at the signing and at the closing. In the case of cross-border transactions, particular caution is required in this regard as the applicants may have changed. In the absence of transitional provisions, the newly introduced procedural norm of section 16 para. 4a GrEStG also applies retroactively to cases that have not yet been completed.<\/p>\n<\/div><\/section><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8z8mfn-f88e2b5124f3469e3430d462687e4c49\">\n.flex_column.av-8z8mfn-f88e2b5124f3469e3430d462687e4c49{\nborder-radius:0px 0px 0px 0px;\npadding:7px 0px 0px 0px;\n}\n<\/style>\n<div  class='flex_column av-8z8mfn-f88e2b5124f3469e3430d462687e4c49 av_one_third  avia-builder-el-8  el_after_av_two_third  avia-builder-el-last  sy-only-desktop hide_on_print flex_column_div  column-top-margin'     ><p><div  class='avia-builder-widget-area clearfix  avia-builder-el-9  el_before_av_textblock  avia-builder-el-first '><section id=\"categories-3\" class=\"widget clearfix widget_categories\"><h3 class=\"widgettitle\">Newsletter issues<\/h3>\n\t\t\t<ul>\n\t\t\t\t\t<li class=\"cat-item cat-item-272\"><a href=\"https:\/\/honert.de\/en\/category\/2026-q1\/\">2026 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-267\"><a href=\"https:\/\/honert.de\/en\/category\/2025-q4-en\/\">2025 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-265\"><a href=\"https:\/\/honert.de\/en\/category\/2025-q3-en\/\">2025 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-263\"><a href=\"https:\/\/honert.de\/en\/category\/2025-q2-en\/\">2025 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-261\"><a href=\"https:\/\/honert.de\/en\/category\/2025-q1-en\/\">2025 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-254\"><a href=\"https:\/\/honert.de\/en\/category\/2024-q4-en\/\">2024 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-250\"><a href=\"https:\/\/honert.de\/en\/category\/2024-q3-en\/\">2024 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-242\"><a href=\"https:\/\/honert.de\/en\/category\/2024-q2-en\/\">2024 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-238\"><a href=\"https:\/\/honert.de\/en\/category\/2024-q1-en\/\">2024 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-227\"><a href=\"https:\/\/honert.de\/en\/category\/2023-q4-en\/\">2023 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-208\"><a href=\"https:\/\/honert.de\/en\/category\/2023-q2-en\/\">2023 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-206\"><a href=\"https:\/\/honert.de\/en\/category\/2023-q1-en\/\">2023 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-193\"><a href=\"https:\/\/honert.de\/en\/category\/2022-q4-en\/\">2022 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-184\"><a href=\"https:\/\/honert.de\/en\/category\/2022-q3-en\/\">2022 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-182\"><a href=\"https:\/\/honert.de\/en\/category\/2022-q2-en\/\">2022 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-177\"><a href=\"https:\/\/honert.de\/en\/category\/2022-q1-en\/\">2022 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-175\"><a href=\"https:\/\/honert.de\/en\/category\/2021-q4-en\/\">2021 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-173\"><a href=\"https:\/\/honert.de\/en\/category\/2021-q3-en\/\">2021 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-171\"><a href=\"https:\/\/honert.de\/en\/category\/2021-q2-en\/\">2021 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-169\"><a href=\"https:\/\/honert.de\/en\/category\/2021-q1-en\/\">2021 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-167\"><a href=\"https:\/\/honert.de\/en\/category\/2020-q4-en\/\">2020 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-162\"><a href=\"https:\/\/honert.de\/en\/category\/2020-q3-en\/\">2020 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-160\"><a href=\"https:\/\/honert.de\/en\/category\/2020-q2-en\/\">2020 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-158\"><a href=\"https:\/\/honert.de\/en\/category\/2020-q1-en\/\">2020 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-156\"><a href=\"https:\/\/honert.de\/en\/category\/2019-q4-en\/\">2019 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-150\"><a href=\"https:\/\/honert.de\/en\/category\/2019-q3-en\/\">2019 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-138\"><a href=\"https:\/\/honert.de\/en\/category\/2019-q2-en\/\">2019 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-140\"><a href=\"https:\/\/honert.de\/en\/category\/2019-q1-en\/\">2019 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-144\"><a href=\"https:\/\/honert.de\/en\/category\/2018-q4-en\/\">2018 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-146\"><a href=\"https:\/\/honert.de\/en\/category\/2018-q3-en\/\">2018 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-136\"><a href=\"https:\/\/honert.de\/en\/category\/2018-q2-en\/\">2018 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-128\"><a href=\"https:\/\/honert.de\/en\/category\/2018-q1-en\/\">2018 Q1<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-126\"><a href=\"https:\/\/honert.de\/en\/category\/2017-q4-en\/\">2017 Q4<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-116\"><a href=\"https:\/\/honert.de\/en\/category\/2017-q3-en\/\">2017 Q3<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-114\"><a href=\"https:\/\/honert.de\/en\/category\/2017-q2-en\/\">2017 Q2<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-142\"><a href=\"https:\/\/honert.de\/en\/category\/deals-en\/\">Deal Announcements<\/a>\n<\/li>\n\t<li class=\"cat-item cat-item-58\"><a href=\"https:\/\/honert.de\/en\/category\/uncategorized\/\">Uncategorized<\/a>\n<\/li>\n\t\t\t<\/ul>\n\n\t\t\t<span class=\"seperator extralight-border\"><\/span><\/section><\/div><br \/>\n<section  class='av_textblock_section av-5j3bdf-e14a7a5fc2e61d3231b8dbab5bd03858 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><h2>More information on this topic<\/h2>\n<ul class=\"sy-list-margin\">\n<li><a href=\"http:\/\/9zh.f5b.myftpupload.com\/en\/taetigkeitsgebiete\/mergers-acquisitions\/\">Mergers &#038; Acquisitions (M&#038;A)<\/a><\/li>\n<li><a href=\"http:\/\/9zh.f5b.myftpupload.com\/en\/taetigkeitsgebiete\/corporate-law\/\">Corporate Law<\/a><\/li>\n<\/ul>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-4uz1nn-0d4b4261f44fc86f2bd1036a7d41f246\">\n#top .hr.hr-invisible.av-4uz1nn-0d4b4261f44fc86f2bd1036a7d41f246{\nheight:8px;\n}\n<\/style>\n<div  class='hr av-4uz1nn-0d4b4261f44fc86f2bd1036a7d41f246 hr-invisible  avia-builder-el-11  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><br \/>\n<section  class='av_textblock_section av-2rdf9f-9274bfdd894e7334ecca4bbfff7ab8cc '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock hide_on_print'  itemprop=\"text\" ><h2>Downloads<\/h2>\n<p><a href=\"#\" onclick=\"window.print();return false\">Print<\/a><br \/>\n\n\n\n\t<div class=\"dkpdf-button-container\" style=\" text-align:left \">\n\n\t\t<a class=\"dkpdf-button\" href=\"\/en\/wp-json\/wp\/v2\/posts\/8304?pdf=8304\" target=\"_blank\"><span class=\"dkpdf-button-icon\"><i class=\"fa fa-file-pdf-o\"><\/i><\/span> Download (PDF)<\/a>\n\n\t<\/div>\n\n\n\n\n\n<\/p>\n<\/div><\/section><\/p><\/div><\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='after_section_2'  class='main_color av_default_container_wrap container_wrap sidebar_right'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-small alpha units'><div class='post-entry post-entry-type-page post-entry-8304'><div class='entry-content-wrapper clearfix'>\n","protected":false},"excerpt":{"rendered":"<p>If the signing and the closing of the share deal occur at different times, the tax authorities consider that there are two transactions that are each subject to real estate transfer tax. As a result, real estate transfer tax may be assessed more than once for one and the same transaction. According to a new procedural norm, the risk of double taxation can be avoided, if a notification has been made in due time and complete in all parts both at the signing and at the closing.<\/p>\n","protected":false},"author":26,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mc4wp_mailchimp_campaign":[],"footnotes":""},"categories":[206],"tags":[],"class_list":["post-8304","post","type-post","status-publish","format-standard","hentry","category-2023-q1-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/8304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/comments?post=8304"}],"version-history":[{"count":7,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/8304\/revisions"}],"predecessor-version":[{"id":8311,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/posts\/8304\/revisions\/8311"}],"wp:attachment":[{"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/media?parent=8304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/categories?post=8304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/honert.de\/en\/wp-json\/wp\/v2\/tags?post=8304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}