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Real Estate

KLOKAR & PARTNER STANDS FOR HIGHEST COMPETENCE AND EXPERIENCE IN REAL ESTATE TAX LAW.

Property is a very popular investment for private individuals and companies. From a tax perspective, however, it has become a major challenge to untangle all the different tax rules that arise when buying or selling real estate. Depending on the legal form, there are different tax consequences in terms of income tax, VAT, real estate transfer tax and fees. We are able to support you in every single phase of your project: from the acquisition, the ongoing rental until the sale of the property.

Renting and leasing

Advice on the ongoing taxation of renting and leasing is one of our areas of expertise. We help you to keep track of your income from the rental of real estate for residential or business purposes and to fulfil your tax obligations (e.g. VAT).

Purchase and sale of real estate

In addition to the ongoing taxation of real estate assets, we can also advise on the most tax-optimised structuring (who buys the property and with what consequences?), the financing and the sale of the property. We can also give you a preliminary calculation of the real estate investment. The aim is to comply with the tax requirements while minimising income tax, real estate transfer tax and fees.

Real estate transfer tax and real estate income tax

We carry out (preliminary) calculations of real estate income tax and/or real estate transfer tax and are available to answer any question you may have regarding real estate taxation. We are also happy to assist lawyers and notaries in this regard. The aim is to optimise real estate transfer tax and real estate income tax.

Special advice in an international context

The purchase or sale of real estate in a cross-border situation often lead to difficult questions regarding the application of double taxation agreements. We are happy to advise you on how to optimise your tax situation.

Dr. Martin Klokar, MSc (WU) has already written comprehensive articles and commentaries on these topics.

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ABOUT THIS TOPIC

We can take care of the registration with the tax office, the clarification of whether the letting should be subject to VAT or is VAT-free, the ongoing bookkeeping including the submission of the advance VAT returns (UVAs), the preparation of tax returns and advice on the optimal utilisation of expenses (e.g. refurbishment expenses, financing expenses, lump-sumps, etc.).

Transfers based on a purchase agreement and transfers by gift or inheritance have different consequences for income tax, VAT and real estate transfer tax. These depend on the type of transfer (“asset deal” or “share deal”). We are happy to help you, both from the seller’s and buyer’s perspective.

Real estate income tax (ImmoESt) and real estate transfer tax (GrESt), including fees, are tax burdens that should not be underestimated. There are numerous special and exceptional provisions (such as the manufacturer exemption or main residence exemption in the context of ImmoESt or extensive favours in the context of GrESt) as well as delimitation difficulties (such as commercial property trading). Optimising exemptions or reductions in real estate transactions, both in the business and non-business area, is one of our core competencies.

As a tax consulting firm that is specialised in real estate tax law, we are happy to take over the calculation of real estate income tax or real estate transfer tax. The co-operation ranges from answers to individual questions, to obtaining a second opinion on specific issues, to long-term close co-operation over many years.