Anyone who manages property can set up a property holding company - here's how

Before you decide to integrate your properties into a holding structure, you should consider a few important points:

• What exactly is a property holding company?
• How you can set up a property holding company
• How you can save taxes with a property holding company
• When does a property holding company make sense?

Before you decide to integrate your property into a holding structure, there are some important points to consider:

• What exactly is a property holding company?
• How to set up a property holding company
• How a property holding company can save you tax
• When does a property holding company make sense?

In principle, you need to establish at least two companies for the holding structure or integrate two existing companies into a holding structure. You are very free in your choice of legal form: typically, corporations such as GmbHs or UGs are chosen for these companies. The purpose of the property holding company is to manage the shareholding in the subsidiary that runs the profitable operational business.

Would you like to set up a GmbH or UG? Our team will be happy to advise and assist you with your start-up project!

It is well known that the holding structure can bring tax advantages. You have the following advantages within the real estate holding company:

With a well-structured holding company, you can save on trade tax
You can offset profits and losses in the parent company and subsidiary
You enjoy tax advantages when transferring profits to the parent company

If you want to grow with your real estate company and expand your business areas, a real estate holding company can make sense. You can divide tasks between the parent company and subsidiary as required and secure your property in the event of insolvency. You also benefit from tax advantages when selling profits to the parent company.

• Tax advantage when selling real estate: With the holding structure, you reduce the tax burden on the sale to just 1.54 percent by selling the subsidiary GmbH with the property to the buyer - thanks to the intercompany privilege, a large part of the profits remain tax-free.
• Optimal use of real estate: If your operating GmbH wants to move into its own property, you buy it through a new subsidiary. Your GmbH then rents the property and can claim the rental costs in full for tax purposes.
• Efficient profit shifting: The holding company allows you to reinvest profits from your operating GmbH in the real estate GmbH at a favorable rate. This allows you to avoid high taxes on profit distributions and take advantage of tax benefits for your real estate investments.

Setting up a real estate holding company can be a smart decision to take advantage of tax benefits as well as to ensure structured management of your properties. The holding structure allows you to benefit from lower tax rates, improved liability and the ability to effectively reinvest profits. Think carefully about how this structure can benefit your assets and, if necessary, seek professional support to maximize its potential.