Germany: Real Estate and Construction

On 13 May 2026, the German federal cabinet approved the following draft legislation: Act Amending the Building Energy Act; Amending the Building Electromobility Infrastructure Act; and Amending Further Provisions in the Heating Sector. Its centrepiece is the new Building Modernisation Act. The federal government's original target of entry into force by 01 July 2026 now appears unlikely given the parliamentary process ahead. 

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.

We recently launched the first edition of HSF Kramer's Germany Construction & Infrastructure Disputes Newsletter in which we highlight recent developments in German construction law...

Germany has enacted significant reforms to its real estate transfer tax rules for share deals, addressing the controversial issue of double taxation that previously arose when signing and closing occurred at different times. The new legislation establishes a clear hierarchy between tax provisions and extends notification periods, fundamentally changing how M&A transactions involving real estate-owning companies are taxed.

On 13 May 2026, the German federal cabinet approved the following draft legislation: Act Amending the Building Energy Act; Amending the Building Electromobility Infrastructure Act; and Amending Further Provisions in the Heating Sector. Its centrepiece is the new Building Modernisation Act. The federal government's original target of entry into force by 01 July 2026 now appears unlikely given the parliamentary process ahead. 

The Court of Justice of the European Union ruled that Portugal's real estate transfer tax on restructurings violates the Capital Duty Directive when applied to share contributions in companies holding real estate. This landmark decision has significant implications for German real estate transfer tax law, where similar provisions exist for share deals involving property-holding companies, potentially rendering certain tax assessments incompatible with EU law.

On 13 May 2026, the German federal cabinet approved the following draft legislation: Act Amending the Building Energy Act; Amending the Building Electromobility Infrastructure Act; and Amending Further Provisions in the Heating Sector. Its centrepiece is the new Building Modernisation Act. The federal government's original target of entry into force by 01 July 2026 now appears unlikely given the parliamentary process ahead. 

Mit Urteil vom 8. Juli 2025 (Az. 6 K 6040/22) hat das Finanzgericht Berlin-Brandenburg entschieden, dass die Vermietung von Betriebsvorrichtungen durch eine grundstückshaltende...

In its ruling on July 8, 2025 (Ref. 6 K 6040/22), the Berlin-Brandenburg Finance Court declared that the leasing of operating facilities by a property-owning company constitutes an activity that is detrimental...