The taxation of a so-called “passive de-stratification”.

It is disputed whether a so-called passive de-stratification is subject to German taxation. In a recent ruling, the Münster Regional Tax Court has now decided that, in any case, the amendment of the DTA with Spain as of 01.01.2013 did not lead to a taxable passive de-stratification. The ruling affects a large number of German owners of Spanish real estate who hold this real estate via a corporation.