Share Deals: Planned Changes With Respect To Real Estate Transfer Tax

The German Federal Ministry of Finance has published a discussion draft regarding the amendment of the real estate transfer tax ("discussion draft"), which is especially important with respect to share deals. One of the main reasons for the draft regulations is the abandonment of "joint ownership" ("Gesamthandsgemeinschaft") coming into application with the modernization act on the law of partnerships ("MoPeG") on January 1, 2024. The goal of the amendment is to avoid taxation gaps on the one hand and inappropriate tax burdens on the other hand. Therefore, fixed participation limits and time limits in a share deal situation shall be abolished. The new rules should come into force on January 1, 2024.