German Taxation of Inbound Real Estate Investments

Abstract

This chapter gives an overview of the main aspects of the German principles of taxation relevant for inbound German real estate investments by non-German corporate investors. As a rule, such investments are subject to German (corporate) income tax and solidarity surcharge. The tax structuring usually focuses on mitigating German trade tax and German real estate transfer tax. In the course of the transaction itself, German value added tax issues play a significant role.