Articles

German Tax Updates in June 2025

1. Tax Relief on Real Estate Transfers in the Spin-off from a Sole Proprietorship to a Limited Liability Company
2. Presumption of Private Use of Vehicle 
3. Tax Treatment of Gym Membership Fees under the Income Tax Act
4. Business Succession: Does the Gift of Company Shares Constitute Employment Income?

1. Tax Relief on Real Estate Transfers in the Spin-off from a Sole Proprietorship to a Limited Liability Company

If a sole proprietorship, including a business property, is spun off into a newly established corporation, this process may qualify for preferential treatment under the group clause of the “Real Estate Transfer Tax Act”, according to the Federal Fiscal Court (BFH). However, the five-year post-transfer holding period must be applied.

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