Germany: Environmental Law

German tax accounting rules for building-related expenditures are undergoing significant change, particularly affecting energy-efficient refurbishments. Recent guidance from the Institute of Public Auditors and the Federal Ministry of Finance has expanded the scope of capitalizable costs, creating potential divergences between commercial and tax treatment that require careful navigation by tax advisors.

Per- and polyfluoroalkyl substances ("PFAS") regulation in Germany is accelerating, with authorities increasingly relying on existing waste, water, and environmental criminal law, rather than waiting for new PFAS-specific statutes. Parallel EU measures are reinforcing this trend.

In our briefing German energy transition: Potential for investors we gave a detailed overview of the opportunities and risks of the energy transition in Germany for domestic and foreign investors.