Our client, a limited liability company (GmbH), acquired all the shares in a property-owning GmbH through a notarised agreement on 11 March 2024 (known as the 'signing'). The transfer of all shares in the property-owning GmbH took place after the purchase price had been paid in full on 29 March 2024 (known as 'closing').
However, the tax office assessed real estate transfer tax on both our client and the property-owning GmbH in notices dated 30 May 2024, despite it being the same transaction. This meant that both our client and the property-owning GmbH were charged real estate transfer tax, effectively amounting to double taxation.
The tax office and the tax court rejected the appeal and the action against the revocation of the enforcement of the real estate transfer tax.
Our law firm lodged an appeal against this decision with the Federal Fiscal Court (BFH). Consequently, the BFH ruled on a case of double assessment of real estate transfer tax based on the so-called signing/closing theory for the first time.
Successfully, in favour of our client!
This long-awaited decision overturned the tax court's ruling and granted the application for suspension of enforcement. This means that the tax office must now refund the double land transfer tax paid.
The proceedings we conducted, and the favourable BFH decision obtained for our client, can now be applied to similar cases in which the tax office assesses double real estate transfer tax based on a particular set of facts.
It is crucial that an appeal is lodged against the tax office's decisions in good time.
Referring to this BFH decision enables the suspension of the enforcement of the double real estate transfer tax assessment.
Do you have a similar case? Feel free to contact us and we will assess whether the BFH decision is applicable to your case. Benefit from our expertise gained from successfully conducting BFH proceedings.
You can find the full decision of 9 July 2025 – II B 13/25 and the previous instance (FG Berlin-Brandenburg) of 9 January 2025 – 12 V 12130/24 here.
