Buying Land + grunderwerbsteuer

26 posts in this topic

A quick question....

 

We have just bought a small piece of land we will be building on. Already visited the Notar for the Purchase contract and Land registery order.

 

Question is, when do we pay the grunderwerbsteuer. Is it something we are supossed to organise or will we receive a bill at some point?

 

Thanks

 

Joe

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You will find that a trip to the Notare will release a flurry on various taxes and bills to pay...

 

After your visit to the Notare, check your letter box!!

 

 

Trust me!

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We received her bill after approx 10 days. The cheeky bint charged us an extra 60 euro for "clarification in a foreign language" which she did not do, we took along a friend who is a translator who had to clarify one sentence of the contract for us!

 

So we shall await a bill from the city....

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A quick BTT for this one.

 

In the end we got a couple of letters from the Finanzamt regarding this purchase, the last one was in December, which we answered. Until now however no bill, the question is... should we chase them up or not.

 

From the letters they sent us it was clear that they were actually trying to look for a reason to charge us the grunderwerbsteuer on both the house build cost in addition to the land price.

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Did you buy the land from the same company that is building your house, and does your contract include construction of the house as well as the property? If it does, then they can do that. If not, they can't.

 

We got nailed by that one, too, way back in 1994, on a flat in the East.

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Nope, the land was bought from a private person, however the company organising the building (not actually building the house) put us in contact with the seller, so there is a link there really.

 

However no contacts regarding the house mention the land.

 

It seems to be a bit of a grey area judging by my googling.

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OK... I have a quick question before I head off to the notar to ask...

 

I have been offered a piece of land that is adjoining my land... It used to be part of the farm, but when the bloke sold the place, he thought it would be smart to keep this piece... Now he has decided to sell it...

 

So, do we NEED to go to a notar or can we do the "stuff" on our own at the Grundbuch amt etc...?

 

I assume the answer is " The notar wants his dosh"... but hey, no harm in asking...

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Jein.

 

 

§ 311b BGB

Verträge über Grundstücke, das Vermögen und den Nachlass

 

(1) Ein Vertrag, durch den sich der eine Teil verpflichtet, das Eigentum an einem Grundstück zu übertragen oder zu erwerben, bedarf der notariellen Beurkundung.

That's the Ja part. Real estate transactions must be documented and certified by a notary.

 

 

Ein ohne Beachtung dieser Form geschlossener Vertrag wird seinem ganzen Inhalt nach gültig, wenn die Auflassung und die Eintragung in das Grundbuch erfolgen.

And there's your Nein. Because if you don't the transaction becomes valid once the surrender and registration are completed in the property registry.

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It will also depend if that piece of land is a segmented (isolated, identifiable) plot in the land registry. If it's not (e.g. part of another piece of registered land) then it needs to be formally split off so it can be assigned to you. While that doesn't need a notary it's wise to have it legally verified or it could bite you (or the neighbour) in the bum later, especially if either section becomes part of a subsequent inheritance. While you can also register a security in your name on a section of a plot of land it's legally very insecure.

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YL6 is right! However, I think that since the piece of land was already part of the whole land (farm), and he sold only one part, and kept the other, this means that he has already split it (isolated it). But no harm in checking...

I think the Notary should do this..

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Hello.

 

Quick question. We failed to get our finance sorted out in time to buy building ground direct from the original seller.

The result is that the builder, in his private capacity (ie the contract is with Herr Bauer and not the Baufirma GmbH), bought the ground.

 

Next step will be for us to buy the ground from him, but the Baufirma GmbH is suggesting a single contract for ground and house.

 

This will have a significant Grundbewerbsteuer impact.

 

If we insist on separate contracts, ie. buy the ground from the private Herr Bauer, then sign the Building contract with the Baufirm GmbH (same family name) can we safely pay the tax only on the ground? Or are the Private person and Business too close to one another?

 

Any experience or suggestions?

 

I'll probably go to our steuerberater to confirm.

 

B

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I think the FA would legally be able to levy the tax on the whole lot. If not then every house sale/build would be "2 contracts" to minimise tax.

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Sure, but here we have 2 legal 'personalities' the Herr Bauer (current ground owner) and his company.

 

We are not signing a contract with the individual to build the house, but with the company.

 

We are discussing with our Steuerberater, so will see what he comes back with.

 

B

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Ok. Be surprised if this isn't considered contrived enough to be tax evasion though. I would want written confirmation from the FA that they won't come after you. Your tax advisor can only give you his or her opinion. Good luck...please keep us informed. Interested in this topic myself.

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Resurrecting old topic please. I am in the process of buying a plot of land from the Stadt (Gemeinde). Will the notar be involved in this type of contract (Between a private citizen and the Gemeinde). I know I will still have to pay the  grunderwerbsteur.

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12 minutes ago, justwise said:

Will the notar be involved in this type of contract (Between a private citizen and the Gemeinde).

 

Yes. A Notar has to be involved in any property sale/purchase transaction under the German system.

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Congrats x buying the land from the Gemeinde, they are better purchases than buying from the open market. The catch is they play politics so they normally craft bizarre rules to ensure they sell only to whom they like. We also wanted to buy from the Gemeinde, it would have been almost 100k cheaper, but they told us at 43, with a 7yr old child, we were too old and they turned us down. ☹️

 

This being Germany, I would imagine the minutiae of this vary from Land to Land. Nevertheless a Notar will be involved. His job is to write the contract according to what the parties agree upon, read it to them and ensure they understand it (if he doubts either party understand the German, he will request this party to have a translator), plus of course blabla all the legalities. All straightforward, I doubt there can be "good" and "bad" Notar.

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