Are you facing complex tax issues concerning your property or an inheritance? Competent tax advice is often the key not only to fulfilling legal obligations but also to realizing significant financial benefits. Discover how you can avoid pitfalls and manage your assets optimally.
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The topic briefly and concisely
Professional tax advice is essential to take advantage of tax benefits in real estate ownership and inheritance matters, ensuring obligations are met correctly, with costs often being reduced through good preparation.
When selling a property, observing the 10-year speculation period or self-use can be crucial for realising tax-free profits; furthermore, the property tax reform requires new assessments from 2025.
Inheritance and gift tax can be optimized by using allowances (e.g. €500,000 for spouses, €400,000 for children every 10 years) and special regulations for family homes or rented properties.
The complexity of German tax law, especially in the areas of real estate and inheritance, presents many owners and heirs with significant challenges. Professional tax advice not only helps you stay organized and meet all legal requirements on time but also uncovers significant savings potential. This article highlights key aspects of tax advice, from choosing the right advisor to optimizing your tax burden on real estate and strategic planning in inheritance matters, and shows you how to avoid costly mistakes and take advantage of financial benefits. With the right support, such as through an Auctoa evaluation or the ImmoGPT chat, many of these challenges can be efficiently managed.
Understanding the Basics of Tax Consultancy in Germany
Tax consultancy in Germany is a so-called reserved task, primarily carried out by qualified tax advisors, auditors, or lawyers. These experts assist you in preparing tax returns, bookkeeping, and representing your interests with tax authorities. The costs for tax consultancy are regulated by the Tax Advisor Remuneration Ordinance (StBVV) and vary depending on the value in dispute and effort; for an income tax return, they can range between 300 and 1,000 euros. An early and well-prepared consultation can often reduce costs by up to 10%. Choosing the right advisor, ideally with a specialisation in tax consultancy for real estate, is crucial for success. This lays the foundation for effective collaboration and optimisation of your tax situation.
Mastering tax aspects of property ownership and sale
Owning property comes with various tax obligations, including the annual property tax, which depends on the assessed value (from 2025, the property tax value) and the local multiplier rate. When renting out a property, income may be subject to income tax, with deductible expenses such as loan interest. When selling a property, capital gains tax may apply if the period between purchase and sale is less than ten years and the property has not been continuously owner-occupied. The ten-year speculation period can be crucial for rental properties to realize the sales profit tax-free. Thoughtful tax optimisation when selling property can significantly reduce your tax burden. The new property tax return had to be submitted by the end of January 2023, for the reference date of 1 January 2022. The use of digital tools, such as the Auctoa property tax calculator, can assist in this process.
Navigate inheritance and gift tax for real estate
The transfer of property through inheritance or gift is subject to inheritance or gift tax in Germany. The amount of tax depends on the degree of relationship and the value of the property, with personal allowances able to reduce the tax burden. For example, a tax-free allowance of 500,000 euros applies to spouses and 400,000 euros per parent for children. These allowances can be utilised anew every 10 years, making lifetime gifts attractive. A self-occupied family home can be inherited completely tax-free by the spouse or children (up to 200 square metres of living space) under certain conditions, provided they live in it themselves for at least ten years. For rented properties, often only 90% of the market value is used for tax calculation. Early planning with an inheritance tax calculator and professional advice is essential here to optimise gift taxes on real estate.
Important aspects of inheritance and gifting of property are:
Use of personal allowances (e.g. 500,000 euros for spouses, 400,000 euros for children).
The 10-year period for re-utilising allowances with gifts.
Tax exemption for the family home under certain conditions of self-use.
10% valuation discount for rented residential properties.
Obligation to notify the tax office within three months of becoming aware of the inheritance.
The complexity of these regulations often makes expert advice indispensable.
The role of digital tax consulting and deadlines
Digitalisation has revolutionised tax consulting, offering numerous advantages such as remote access to documents and evaluations, time savings through automation, and more efficient communication with the advisor. Many firms use platforms like DATEV Unternehmen online for seamless data exchange. Digital document capture and archiving can reduce effort by up to 30%. It is important to keep an eye on the applicable deadlines for tax returns. For the 2024 income tax return, the general deadline is 31 July 2025; with a tax advisor, it is extended to 30 April 2026. For the property tax return under the reform, the deadline was 31 January 2023 (exception Bavaria: 30 April 2023). A checklist for tax documents can help avoid missing a deadline. The use of advisory services to avoid tax law errors is highly recommended in this regard.
Tax optimization through strategic planning and consulting
A proactive tax consultancy goes beyond mere compliance and aims to actively shape your financial situation. For real estate investments, for instance, depreciation (AfA) can be claimed; for new buildings from 2023, the straight-line depreciation is 3% over 33 years. For listed buildings, additional depreciation for renovation costs is possible, often 9% annually over eight years and 7% in the following four years. Through clever planning, such as using usufruct reservations in gifts, the tax burden can be legally reduced by up to 50%. Also, choosing the right legal form for real estate assets, such as a real estate GmbH or a family pool, can bring significant tax advantages when acquiring property and in ongoing taxation. A specialised tax advisor for real estate assets helps identify and implement such potentials, for example, to minimise tax in a house sale and tax payment.
Strategies for tax optimisation include:
Utilising depreciation options (AfA), e.g., 3% straight-line for new buildings.
Special depreciation for listed buildings.
Structuring gifts with usufruct reservations to reduce the taxable value.
Choosing the optimal legal form for real estate assets (e.g., real estate GmbH, family pool).
Exploiting the 10-year speculation period for property sales.
Considering deductible expenses in renting and leasing.
These measures require careful analysis and planning.
Conclusion: Secure tax benefits with foresight and expertise
Tax advice in the context of real estate and inheritances is a complex field, yet it offers significant potential for tax savings and wealth preservation. Expert advice enables you not only to fulfil current tax obligations correctly but also to optimise your financial situation in the long term. On average, professional tax planning can save 15-25% of your tax burden. Whether it's the valuation of your property, timely submission of declarations, or strategic succession planning – investing in qualified tax advice pays off. Make use of digital possibilities and the expertise of professionals to master your tax affairs confidently and secure your wealth for the future. Remember: A well-informed decision today can save you thousands of euros tomorrow.
tax consultancy
Additional useful links
The Bundesfinanzministerium provides comprehensive information on inheritance and gift tax.
The Statistische Bundesamt offers data on construction prices and the property price index.
The Statistische Bundesamt publishes detailed tables on house prices and building land.
The IHK München provides information on inheritance and gift tax for businesses.
FAQ
What are the advantages of digital tax consultancy?
Digital tax consulting allows remote access to documents, saves time through automated processes such as document capture, reduces manual errors, and simplifies communication and data exchange with the tax advisor, often via platforms like DATEV. This leads to greater efficiency and often lower costs.
How can I save taxes when selling property?
You can save on taxes when selling a property (speculation tax) if there are more than ten years between purchase and sale. Alternatively, the tax is waived if you have used the property yourself in the year of sale and the two preceding years. Offsetting sale costs can also reduce the taxable profit.
What are the key allowances for inheritance and gift tax on real estate?
The main tax allowances are 500,000 euros for spouses/partners, 400,000 euros for children and stepchildren (per parent), and 200,000 euros for grandchildren. These allowances can be claimed anew every 10 years. There are additional tax exemptions for the family home if it is self-occupied, under certain conditions.
Do I always have to pay taxes on rental income?
Yes, income from renting and leasing is subject to income tax in Germany. It must be reported in Annex V of your income tax return. However, you can claim various expenses (e.g., depreciation, interest on property loans, repair costs) that reduce your tax burden.
By when must the regular income tax return be submitted?
The general deadline for submitting the income tax return is July 31 of the following year. If you hire a tax consultant, this deadline is usually extended to the last day of February of the year after next. For the 2024 tax return, the deadline with a consultant is April 30, 2026.
What is changing with property tax from 2025?
From 1 January 2025, property tax will be calculated based on new property values. Property owners were required to submit a property tax declaration for this purpose. The previous standard values will be replaced by new ones, which are calculated according to different models (federal or state-specific models) depending on the federal state. The assessment rates are determined by the municipalities.
