Clifford Chance
Newsletter 'German Federal Fiscal Court considerably restricts the scope of applicability of section 1 para 2a German RETT Act to indirect transfers of interests in property-owning partnerships'
4 July 2013
If 95% or more of the interests in a property-owning partnership are - within a period of five years - directly or indirectly transferred to new partners, the property-owning partnership is deemed to have transferred its property to a fictitious new partnership, triggering German real estate transfer tax ("RETT") at 3.5 - 5.5% on the property value to be determined in accordance with the German Valuation Tax Act.
