How the GmbH can become a tax trap for real estate owners
Ldear landlords, dear landladies! I have no idea how you manage your rented properties, whether you hold the houses and apartments as private assets or put them in a corporation. I only know one thing: If you are planning to incorporate a limited liability company in the next few days, to Steer to save, then you should think about the story again carefully. There is a great danger of falling flat on one’s face in this matter. Here is the evidence for my concerns.
A wealthy investor is 50 years old and owns real estate worth three million euros. There are three properties that yield annual rents of 150,000 euros. The investor earns 250,000 euros per year, so the rents are subject to the top tax rate of 45 percent and the solidarity surcharge of 5.5 percent. That’s 47.475 percent, so it’s no wonder the landlord is receptive to suggestions to lower that burden. This is the hour for financial and tax advisors who have specialized in the formation and sale of real estate companies.