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Click below for more informations on German Tax Representative. German
Tax Representative
ECO MUNICH is also acting as a German "Inländischer Finanzvertreter". This is a tax authorized person to represent foreign investment companies. This representation is necessary to prevent a special tax burden for the investors and allows the foreign company to become more competitive. For ECO MUNICH the tax representative for foreign investment companies is not just an entity that provides those representation services recommended by the Foreign Investment Law. The representative acts also as a lobbyist for the foreign investment company in Germany. ECO can provide constant contact with the major German Investment Banks and the Federal Tax Office. ECO MUNICH as the German tax representative offers another special service to the foreign investment company: to constantly monitor the German legislative acts affecting foreign investment companies and seek to influence the legislative proceedings in a favorable manner for those companies. ECO MUNICH will keep the investment companies it represents informed on all changes in German legislation to ensure full compliance with the requirements of the Foreign Investment Law as amended. Full scale service will also cover the preparation and filing of the tax declaration for the foreign investment company, a service that is also beyond and above the required services of a tax representative according to the Foreign Investment Law. All German services including the tax representation can be organized through the Atlanta office ECO MUNICH LLC.
Why is the German Money Market attraktive for US-REITs
In Germany we are presently seeing a dramatic increase in interest in US-REITs. Whereas in the past investment in real estate was mainly domestic, several changes to German Federal Tax Law that were effective as of January 1, 1997 reduced the tax advantage for special real estate investments in Germany (primarily investments in the former states of Eastern Germany). Consequently, German investors have become more interested in investments based on international real estate. In 1997 German investors bought more than US$ 450 Million REIT shares through one German bank in less than two weeks. All this development must to be seen in the light of the approaching European monetary union which will become effective on January 1st. 1999. As many investors are concerned and unsure of the effects of a single European currency, they are looking for investment opportunities outside of the boundaries of those countries which are perspective members of the monetary union. US-REITs seem to be the perfect investment vehicle for those German investors, which is why German investment in U.S. markets will continue to increase. A foreign investment company can use two methods of introducing its products on the German money market:
In any event, the foreign company will be required to i) name a tax authorized person in Germany and ii) prove the tax aspects of the REIT. REIT shares do not enjoy any special or favorable treatment under the German-American Tax Treaty. Therefore, REITs must be of interest from an investment standpoint and the owner must be able to avoid any unfavorable tax treatment in Germany. With respect to shareholders in Germany there is a distinct difference between REITs with an appointed tax authorized person in Germany (normal taxation) and those REITs without (penalty taxation). The "penalty tax" can amount to 90 % of the surplus between the first stock exchange price in the calendar year and the last price determined in course of a calendar year. Consequently, a REIT must appoint a "tax authorized person" in order to effectively sell REIT shares to German investors. Our firm can be such tax authorized person and communicates with German tax authorities and help to solve together with Rückel & Collegen any related legal matter. All legal representation concerning REIT-topics in Germany can be organized through the Atlanta office. We are able to offer contacts to the German investment sales community through our affiliated offices in Germany. |
