Real Estate Taxation
Comprehensive tax advisory services
Clear overview. Sound decisions.
With Trinity Tax, you receive expert advice and support on all aspects of the taxation of real estate. We assist you in the correct determination of income, depreciation, and taxes—for both private and commercial properties – helping you minimize tax risks and make optimal use of tax opportunities.
Our Core Services
Tax Advice for Acquisitions
Individual tax structuring: Optimisation of the acquisition structure to minimise tax exposure
Ongoing Taxation of Real Estate
Optimization of ongoing taxation for real estate held as private assets and business assets (e.g., maximizing depreciation potential and financing expenses)
Structuring the extended trade tax reduction for real estate for purposes of German trade tax
Frequently Asked Questions
How are properties taxed in Germany?
In Germany, various types of taxes apply to real estate ownership: property tax, income tax on rental income, and, where applicable, trade tax in the case of commercial activity. The amount of tax depends on the value of the property, its use, and the legal form of the owner. Early planning helps to optimize the tax burden and ensure compliance with statutory obligations.
When is the sale of a property subject to tax?
A property sale is generally taxable if a gain is realised within ten years of acquisition (the so-called speculation period). Exceptions may apply in cases of owner-occupation or acquisition without consideration (inheritance or gift). We review your individual situation to assess potential tax liabilities and identify possible exemptions.
For business owned properties, there is no speculation period incorporated in the German tax legislation. The taxable gain depends especially on the book value of the property and the purchase price.
What are the core services for property taxation offered by Trinity Tax?
- Tax advice for private and commercial real estate
- Guidance on depreciation, special depreciation, and property renovations
- Utilization of the extended property deduction to minimize trade tax
- Support with real estate transactions (purchase, sale, financing)
- Review and assistance during tax office audits or business audits
What is the "extended property deduction"?
The “extended property deduction” is a tax regulation for real estate companies that allows them to pay little or no trade tax on real estate income if certain conditions are met. However, the extended deduction is always subject to very close scrutiny by the tax authorities and requires careful planning and implementation.