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Real estate transfer tax – challenges in signing/closing cases

Real estate transfer tax – challenges in signing/closing cases
  • 03/28/2025
  • Reading time 2 Minutes
Tax

Real estate transfer tax law is one of the most complex areas of German tax law. In particular, considerable uncertainties can arise in the taxation of substitute realizations (Art. 1 (2a-3a) GrEStG).

Tax authorities, case law and specialist literature sometimes take different approaches. This complicates the tax treatment and entails risks for companies and consultants.

A central problem is the legal regulation on the tax authorities’ responsibility, which is subject to interpretation, particularly in the case of multi-level participation structures. In addition, there are short notification periods of just two weeks after signing and closing, non-compliance with which has serious tax consequences – up to and including the refusal to reverse any double real estate transfer tax burden. The lack of clarity and increasing complexity of the regulations pose major challenges for taxpayers.

In the current specialist article in the weekly journal “Deutsches Steuerrecht” (DStR), Mario Hesse and Eric Werner analyze important problem areas in this regard and make practical recommendations.

They take up considerations on a possible legal clarification, simplification of the notification obligations and an adjustment of the deadlines – as a potential contribution to improving practical manageability and legal certainty.

You can find the full article in the current issue of DStR (issue 12/2025).