Majorca Property News

German tax authorities sponsors Spanish Finca

Happy summer message for property owners with residences abroad: The tax is now granted in all cases, open Eigenheimzulage for condominiums or houses in other EU countries.
The tax now granted in all cases, open Eigenheimzulage for condominiums or houses in another EU country or in Norway, Iceland and Liechtenstein. That does not happen voluntarily, but on default by the European Court of Justice.
This message can be joyful summer property owners with residences abroad currently use, although the Eigenheimzulage long since been abolished. For old cases may support it later on, such as the finca on Mallorca or the apartment in Tuscany.
If the former construction or purchase for the home from years abroad before 2006 dated, there are the home and children's allowance at the request yet for eight years. As a result of the unique legal situation for the purchase or construction was not a grant application had been made, nor interfere with its time limits or there was strong decisions. For an initial application can be easily tied to cases not yet provide.
The claim is, if it comes to construction or acquisition after 31.12.2004 and before 1.1.2007 goes. Then, the application for promotion until the end of December 2009 the Tax asked. In this case, there is even a bonus if the house until 2009 will be ready. Relevant is only the date of the former building.
This prospect for subsequent funding from Treasury now has a number of foreign property owners on the plan set, the money still to be secure.
Basically this is no problem if the domicile own residential purposes. But for further usage and the question of limitation is now fierce dispute erupted. So granted the whole of Lower Saxony Finanzgericht currently no support for holiday and second homes abroad (Az.: 9 V, 80/09), while their colleagues from Baden-Württemberg Eigenheimzulage the grant, because the right to freedom of movement allows each citizen to freely associate in the EU and reside there for a couple of weeks to live (ref. 3 K 3441/08).
When Finanzgericht Cologne are also several cases pending in which Eigenheimzulage for foreign real estate is requested, in which the tax with reference to this limitation had rejected. Is debatable whether it is in such cases ever to apply the period comes. For Affected leaves only the Council, all options are open and the allowance to apply only once.