Structuring a 2–10‑flat portfolio after 02 Jul 2026: GmbH vs direct ownership

What changed on 02 July 2026 — the legal facts you must know

On 2 July 2026 the Neuntes Gesetz zur Änderung von Vorschriften im Steuerberatungsrecht sowie im Steuerrecht was published in the Federal Law Gazette. The law raises the statutory minimum municipal multiplier (Mindesthebesatz) used to calculate Gewerbesteuer from 200 % to 280 %. The increase is set to apply for the tax (Erhebungs‑) period 2027. ([haufe.de](https://www.haufe.de/id/beitrag/neuntes-gesetz-zur-aenderung-von-vorschriften-im-steuerbe-zusammenfassung-LI17144155.html?utm_source=openai))

The same legislative package also changed parts of the Grunderwerbsteuergesetz that affect the tax treatment of share transfers in property companies (anteilsübergänge an grundbesitzenden Gesellschaften) and updated notification deadlines for participants in real‑estate acquisitions. These GrESt changes were included in the same act published 02.07.2026. For the concrete wording and the new application rules consult the published statutes. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/grestg_1983/BJNR017770982.html?utm_source=openai))

Why the change matters for 2–10‑flat portfolios

Gewerbesteuer is levied by municipalities using a two‑step calculation (a federal tax base times the local Hebesatz). Raising the minimum Hebesatz raises the floor on trade‑tax bills where trade tax applies. A legal consequence you can rely on from the statute is that capital companies (for example a GmbH) are treated as Gewerbebetrieb in full for trade‑tax purposes. That makes a GmbH owner automatically subject to Gewerbesteuer. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gewstg/BJNR009790936.html?utm_source=openai))

For a foreign owner of a small portfolio (2–10 flats) the effect depends on the ownership form and on whether the German tax authority classifies the activity as a commercial trade (Gewerbebetrieb). The new minimum Hebesatz increases the cost if the vehicle is a GmbH or otherwise treated as a Gewerbebetrieb; that cost increase takes practical effect from the 2027 assessment. ([dejure.org](https://dejure.org/gesetze/GewStG/16.html?utm_source=openai))

GmbH vs direct ownership — the structural trade‑offs

GmbH — pros and cons: A GmbH offers liability separation and is a common holding vehicle. But it is treated as a Gewerbebetrieb for trade tax purposes (see statute) so the 280 % minimum Hebesatz increases the unavoidable trade‑tax floor on operating profit inside the company. The statutory change does not alter the rule that capital companies are Gewerbebetrieb; it only raises the municipal multiplier floor. ([gesetze-im-internet.de](https://www.gesetze-im-internet.de/gewstg/BJNR009790936.html?utm_source=openai))

Direct ownership by a natural person or via a simple non‑trading structure can retain the character of passive rental income in many cases; whether it does so is a facts‑and‑circumstances test in German tax practice (services offered, scale, package‑selling, property trading). If the activity remains passive rental, Gewerbesteuer may not apply — but this classification is interactional and must be confirmed with a German tax advisor before purchase. The new minimum Hebesatz matters most where the vehicle or the activity triggers Gewerbesteuer. ([bundesfinanzministerium.de](https://www.bundesfinanzministerium.de/Content/DE/Gesetzestexte/Gesetze_Gesetzesvorhaben/Abteilungen/Abteilung_IV/21_Legislaturperiode/2025-08-07-9-Gesetz-Aenderung-StBerG/2-Regierungsentwurf.pdf?__blob=publicationFile&v=2&utm_source=openai))

Practical steps for organising a 2–10‑flat portfolio (simple, immediate)

1) Before signing: instruct a German tax advisor (Steuerberater) with portfolio experience. Ask for a written opinion on whether the target structure is likely to be treated as Gewerbebetrieb and request modelled tax bills under Hebesatz 280 % for the relevant municipality (municipal Hebesätze vary). 2) Check the seller’s past Gewerbesteuer assessments and ask for copies of trade‑tax returns and municipal tax notices; they show how the property has been treated in the last years.

3) Decide vehicle based on the tax opinion and commercial priorities (liability, financing, exit). If you choose a GmbH, plan for corporate filings and local trade‑tax registration. If you choose direct ownership, document the passive nature of the letting (minimal services, no package sales) and preserve that evidence in contracts and management agreements. 4) After closing: register for German tax IDs, set up bookkeeping in Germany, obtain a German bank account for rentals, and keep minutes/invoices that support your chosen tax classification. For legal steps specific to your situation contact a notary and a Steuerberater — nothing here replaces formal advice.

When to get urgent help

If (a) the draft purchase documents show a package sale or trading‑style renovations, (b) the intended vehicle is a GmbH, or (c) the municipality where the properties sit has a high Hebesatz, obtain a tax opinion before you sign. The 280 % minimum makes a materially higher trade‑tax bill more likely where a GmbH or a commercial classification applies. For bespoke structuring, ask a German Steuerberater and a notary (Notar) familiar with foreign clients. ([dejure.org](https://dejure.org/gesetze/GewStG/16.html?utm_source=openai))