Tax Alert: Reform of German Real Estate Transfer Tax on share deals to be expected

During the conference of the ministers of finance on 29 November 2018, the ministers of finance of the federal states (Finanzminister der Länder) confirmed their decision to reform the Real Estate Transfer Tax (“RETT”) with respect to share deals. The Federal Ministry of Finance (Bundesministerium der Finanzen – ‘BMF’) was asked to implement the suggested amendments in a draft bill. A specific timetable is not yet known.

The ministers of finance of the federal states made such a decision during their conference on 21 June 2018. With their decision dated 29 November, they further pursue this objective.

According to the press release of the Hessian ministry of finance, the conclusion comprises, in essence, the key points that have been discussed since 21 June 2018. However, questions especially with respect to the application of the reformed law and transitional provisions remain open.