Explore More Insight
16 July 2026
The European Court of Justice’s (ECJ) Nova Iberomoldes judgment may become a turning point for German real estate transfer tax (RETT) on capital contributions and corporate restructurings involving real estate-owning entities. If applied to the German RETT regime, the decision could materially change the taxation of such transactions by opening an EU law-based route to RETT neutrality beyond the restrictive exemption under Section 6a of the German Real Estate Transfer Tax Act (“German RETT Act”). At the same time, the practical impact will depend heavily on the pending German Federal Fiscal Court (BFH) proceedings, in particular whether the BFH follows the ECJ’s reasoning, refers the matter to the ECJ, or seeks to distinguish the German rules. For both defense advice in pending or past RETT cases and the structuring of future reorganizations, Nova Iberomoldes should therefore be considered carefully – but not yet treated as settled law.