Germany’s share‑deal rules changed: GrEStG now taxes at signing and gives 1‑month §19 reporting

What changed on 3 July 2026

Germany published the “Ninth Act to amend provisions of tax advisory law and tax law” in the Federal Law Gazette on 2 July 2026 (BGBl. I 2026 No. 197). Article 9 of that act amends the Real Estate Transfer Tax Act (Grunderwerbsteuergesetz, GrEStG) with effect from 3 July 2026. The changes apply to acquisition events (Erwerbsvorgänge) occurring after 2 July 2026. ([buzer.de](https://www.buzer.de/gesetz/17592/index.htm))

First, new §1(3b) GrEStG establishes a precedence rule for share deals: if a transaction is taxable under §1(3) or §1(3a), the change‑in‑shareholding rules in §1(2a) or §1(2b) do not apply. This ends the risk of two assessments when signing and closing fall on different dates. ([buzer.de](https://www.buzer.de/gesetz/17592/index.htm))

Second, §19(3) GrEStG now gives parties one month to report a notifiable event once they have knowledge of it. Previously, practice in share deals was tighter; now the statute itself sets a one‑month window for the parties (separate from the notary’s duty). The late‑filing surcharge rule in §19(6) points to §152(5) sentence 2 AO, disapplies §152(6) AO and the cap in §152(10) AO. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Specialist commentary by KPMG and IWW confirms these two policy goals: exclude double taxation when signing and closing are apart, and extend §19 reporting to one month. ([kpmg.com](https://kpmg.com/de/de/themen/2026/01/reg-e-gewst-hebesatz.html?utm_source=openai))

Tax point is now the signing in share deals

Under §1(3) GrEStG, share deals are taxed when a binding agreement is concluded that would lead to at least 90% of shares being directly or indirectly unified in one hand (§1(3) nos. 1–2) or when a binding agreement provides for the transfer of at least 90% of shares (§1(3) nos. 3–4). The taxable event is the signing (schuldrechtliches Rechtsgeschäft), not the later share transfer. New §1(3b) ensures that the subsequent closing or later share transfers do not trigger a second charge under §1(2a) or §1(2b). ([buzer.de](https://www.buzer.de/gesetz/17592/index.htm))

Economic ownership tests also remain: §1(3a) taxes situations where a person ends up with at least 90% economic participation in a property company. Again, §1(3b) gives this route priority over the change‑in‑shareholder rules. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Who must report, and by when

Steuerschuldners (those liable for GrESt) must file the §19 notice. In share deals, liability can fall on the acquirer and the property company under §13 (e.g., §13 no. 5 for unification; §13 no. 7 for changes in a capital company; §13 no. 8 for 90% economic participation). Non‑German SPVs are Steuerschuldners if they are parties to a taxable event concerning German‑property companies; they must therefore report. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Deadline: one month from the date the party becomes aware of the notifiable event (§19(3)). This applies even if the event is exempt from tax. Notaries and authorities have separate duties under §18 with a two‑week period, but many cross‑border share deals are not notarised in Germany; in those cases the parties’ §19 duty is critical. Late filing can trigger surcharges under the AO, with no §152(10) cap. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Where a foreign SPV must file: the competent Finanzamt

Competence follows §17 GrEStG. For transactions under §1(2a)–(3a), the competent office is the Finanzamt where the property company’s place of effective management (Geschäftsleitung) is located (§17(3)). If the management is outside Germany and properties in different tax office districts are involved, the Finanzamt determined by §17(2) (where the most valuable property or part lies) will make a separate assessment. For a single property, the Finanzamt where that property lies is competent (§17(1)). Address the §19 notice to that office. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

What the notice must contain

§20 GrEStG sets the content. For all cases, list the parties’ names and addresses and, where available, their German tax ID or business ID; for non‑natural persons, until the Wirtschafts‑Identifikationsnummer is introduced, give the commercial register number and the income‑tax file number. Identify the property by land register and address, the notifiable event, date and instrument number, and the consideration. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

For share deals, also state the company name, place of management, business ID (or register and tax numbers), the shares concerned, and—if several entities are involved—a participation overview (§20(2)). Attach a copy if a private deed exists (§19(4)). File in writing; electronic transmission via AO §87a is permitted (§19(5)). ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Valuation base and development cases

In share deals the tax base is generally the “Grundbesitzwert” under the Valuation Act (§8(2) nos. 1–3 GrEStG). Where the acquisition concerns a not‑yet‑built structure, the law now states that the property’s value at the time of completion is decisive; this also applies if a change in the shareholder base or a §1(3)/(3a) signing or transfer is based on a pre‑agreed plan to build (“vorgefasster Plan”). This can raise the assessment base above the price paid at signing. Foreign SPVs planning forward‑fund or forward‑purchase structures should model this explicitly. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))

Transitional rules you should know

§23 GrEStG clarifies application dates. The new §1(2a)–(3b), §8(2) sentences 2–3, and §19(3) apply to acquisition events after 2 July 2026. If shares transfer after 2 July 2026 in fulfilment of a contract signed before 3 July 2026, tax is imposed exclusively under §1(3)/(3a) as in force on 2 July 2026; relief under §16(4a) is excluded. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html))