Real estate transfer tax – Policy advice for companies, associations, and institutions
FinTax policy advice – public affairs agency based in Berlin
Understanding real estate transfer tax.
Classifying reforms.
Protecting interests.
Real estate transfer tax has been at the center of political reform discussions for years—between the fiscal interests of the states, housing policy objectives, and the investment requirements of the economy. Whether tax rates, share deals, allowances, or structural adjustments: the framework conditions are constantly changing and have a significant impact on Germany as a real estate and investment location.
At FinTax policy advice, we support you in identifying political and legal developments relating to real estate transfer tax at an early stage, evaluating them precisely, and addressing them strategically.
- Analysis of legislative initiatives and reform proposals
- Development of lines of argumentation and position papers
- Strategic support for political decision-making processes
Focus on real estate transfer tax – for greater investment flexibility
Real estate transfer tax is a key element of state fiscal policy and a decisive factor for investments in land, real estate, housing construction, and commercial projects. Its structure has a direct impact on location decisions, project calculations, and market movements.
Our analysis provides guidance in this politically and legally dynamic environment, focusing on:
- Reform proposals for share deals, allowance models, and structural adjustments
- Draft legislation and initiatives at federal and state level
- Administrative practice and simplification of enforcement
- Coalition agreements, political guidelines, and parliamentary group initiatives
- Expert committees, specialist hearings, and consultation procedures
- Controversies between fiscal interests, housing policy goals, and investment incentives
Relevant developments in real estate transfer tax
Real estate transfer tax is undergoing a profound reform process. Political initiatives at federal and state level, court rulings, and structural changes in company law have been significantly altering the framework conditions for years. The focus is on curbing tax avoidance schemes, strengthening the fiscal basis of the federal states, and creating investment incentives—particularly in residential construction.
1. Milestones in recent years – what has happened so far
Act amending the Real Estate Transfer Tax Act
The Act amending the Real Estate Transfer Tax Act implemented a key concern of the federal states: limiting tax-free transfers of shares in companies that own real estate (“share deals”). This was achieved, among other things, by lowering the participation threshold from 95% to 90%, extending the holding periods to ten years, and introducing additional supplementary provisions.
Effects of the MoPeG
The new regulations introduced by the Act on the Modernization of Partnership Law (MoPeG) – in particular regarding the legal capacity and structuring of partnerships – have a direct impact on the application of the Real Estate Transfer Tax Act.
In order to secure the transition to the new company law and avoid legal uncertainties, the legislator has made initial event-related adjustments to the Real Estate Transfer Tax Act with the Credit Secondary Market Promotion Act, in particular by creating a legally secure transitional provision that is limited in time until December 31, 2026. A permanent solution must be found for this in the near future.
Um den Übergang zum neuen Gesellschaftsrecht abzusichern und Rechtsunsicherheiten zu vermeiden, hat der Gesetzgeber mit dem Kreditzweitmarktfördergesetz (BGBl. 2023 I Nr. 411 vom 29.12.2023) erste anlassbezogene Anpassungen im Grunderwerbsteuergesetz vorgenommen, insbesondere durch Schaffung einer Übergangsregelung, die aber nur bis zum 31.12.2026 gilt. Hierfür muss zeitnah eine dauerhafte Lösung gefunden werden.
2. Reform models and discussion drafts – a look to the future
In addition to legislative changes, tax policy is also shaped by specialist policy discussions:
- Modernization model for real estate transfer tax law (GrESt-MoMo) by the GrESt working group, Saxony Tax Circle
This model aims at systematic simplification, closing loopholes, eliminating double taxation, and restructuring the group clause. - Discussion draft of a bill to amend the Real Estate Transfer Tax Act by the Federal Ministry of Finance
The draft provides, among other things, for:
- Introduction of a purchaser group regulation (Section 1a GrEStG)
- Restructuring of tax exemptions (Sections 5–6a GrEStG)
- State opening clause for the structuring of relief (e.g., for owner-occupied residential property)
- Adaptation to the new partnership law
- Relief models for first-time buyers
The federal and state governments are discussing allowances and preferential purchases in order to curb the total burden of real estate purchases in the face of persistently high purchase prices, thereby facilitating access to owner-occupied residential property and strengthening investment in housing construction.
3. Classification
These developments show that real estate transfer tax is undergoing a period of profound readjustment. A new regulatory balance must be struck between fiscal interests, tax policy control effects, and investment incentives. It is crucial for companies, institutional investors, and associations to monitor reform processes at an early stage and provide strategic support.
What you get from us – for your successful positioning in real estate transfer tax policy
Our tax policy advice provides guidance, strengthens your position vis-à-vis politicians and administrators, and ensures compliance with regulatory requirements. We support you in identifying developments in real estate transfer tax policy at an early stage, assessing their economic and legal implications in a well-founded manner, and representing your interests effectively.
Your advantages:
- Early assessments of real estate transfer tax policy developments
- Reliable impact assessments for your business model or industry
- Strategically sound positioning vis-à-vis politicians, administrators, and the public
Our tax policy consulting services:
- Preparation of well-founded statements and discussion papers
- Development of convincing argumentation guidelines and position papers
- Support in technical discussions, hearings, and legislative procedures
Contact & Consultation
Would you like to know developments in real estate transfer tax policy will affect your company or industry—and how you can respond to them?
Talk to us. We analyze. We evaluate. We argue. Let us represent your interests together—in a well-founded, understandable, and strategic manner.