Your Gateway to Exceptional Service in Tax, Corporate, and Investment Law
Investments and participations
The taxation and structuring of capital investments for private and institutional investors is our core expertise. A sound investment strategy requires proper tax management of complex investment forms (e.g., funds, certificates, foreign investments), especially when cross-border implications are involved. This is particularly true for alternative investments such as renewable energy, infrastructure, closed-end property funds, and private equity. Our experts bring years of experience in areas like the Investment Tax Act, Foreign Tax Act, international tax law, and relevant corporate law.
We advise both private and institutional investors on structuring these investments, ensuring full tax compliance. Our goal is to help clients avoid unnecessary tax burdens (e.g., definitive withholding taxes) that could reduce returns. TAXGATE excels not only in structuring advice but also in executing complex tax declarations with an international scope.
Our team works with German and foreign banks, funds, and certificate issuers to structure investment products tailored to the tax profiles of target clients. We act as proactive partners, helping our clients design tax-efficient investment structures in line with the latest legal developments.
Additionally, our consultants have extensive experience in assessing add-back taxation scenarios under the Foreign Tax Act (AStG). We assist clients in classifying foreign entities according to this legislation and provide support during upcoming tax audits.
- Conducting tax due diligence for complex investment structures and strategies
- Optimizing investments through domestic and international investment vehicles, including securitization solutions
- Structuring national and international funds, particularly in real estate and alternative investments
- Structuring profit participation rights, bonds, and other hybrid investment alternatives
- Advising on the implementation of management participation programs and carried interest structures
- Guiding domestic funds to avoid tax disadvantages under new investment tax regulations
- Assisting companies in reviewing add-back criteria per Section 7 AStG and determining relevant amounts
- Advising individuals on relocating abroad, considering exit taxation in accordance with Section 6 AStG
- Providing support during AStG tax audits
- Delivering expert opinions on tax-oriented capital investments and financing structures
- Securing binding rulings from tax authorities
- Obtaining negative confirmations from the Federal Financial Supervisory Authority (BaFin) to avoid unauthorized investment transactions in alternative investments
Real estate
The taxation of real estate under German tax law is marked by a complex set of regulations that can be difficult to interpret and economically assess.
Our real estate services provide support for both investments and the entire life cycle of your property. You also benefit from our deep expertise in corporate transactions involving property ownership, with a focus on real estate transfer tax law.
Our experts will guide you through the available structuring options for property transactions:
- Land held as private or business assets
- Current developments (e.g., the 2018 Investment Tax Act)
- Choice of legal form and financing options
- Tax optimization for restructurings
- Open or closed-end property funds
- Transfers within the context of anticipated succession
Heirs and assets
ASSET SUCCESSION
Inheritance tax can impose a significant burden, particularly on family businesses, threatening their continuity. Entrepreneurs and high-net-worth individuals should proactively plan and implement measures to optimize their estate and succession planning
A key element of asset succession planning involves a thorough analysis of the current and future family and tax situation, as well as the allocation of assets across different types and jurisdictions.
TAXGATE offers solutions to minimize inheritance and gift tax liabilities, such as through anticipated inheritance, asset restructuring to utilize inheritance tax benefits, or the inclusion of life insurance policies and foundations.
In cooperation with leading law firms, we incorporate legal measures like marriage and inheritance contracts, wills, and will execution into our asset succession plans. Our advisors also bring extensive experience in handling international considerations, such as moving abroad. This can offer inheritance tax advantages but may result in significant income tax liabilities without actual profit realization, making careful planning crucial.
INVESTMENT CONSULTING
The wide variety and complexity of investment options for capital and tangible assets require a comprehensive assessment of investments and income types. TAXGATE’s services in this area include standardized asset control for all investments, with timely analysis of individual assets concerning costs, income, and taxes.
Transactions
Corporate transactions are often marked by a high degree of tax sensitivity for the market participants involved. National accounting and tax laws already provide numerous options and structuring possibilities.
Effective tax planning involves exploring opportunities for tax-optimized solutions while managing and mitigating potential tax risks. This expertise is further enhanced by incorporating international tax regulations and the growing body of case law from the European Court of Justice
With years of experience in tax structuring, we can support you in key decision-making situations, particularly in the following areas:
- Tax structuring for M&A and private equity transactions, including company acquisitions, mergers, joint ventures, financing rounds, and recapitalizations
- Process planning with consideration for VAT and other transaction-related taxes
- Tax due diligence
- Investment, financing, and distribution decision-making
- Selection of legal form for company setups, including foreign subsidiaries (inbound/outbound)
- Tax risk management including strategic preparation for tax audits
- Accounting and valuation options
- Reorganization and corporate restructuring
- Remediation measures
TAXGATE Private Equity Services
With decades of experience in private equity, we provide comprehensive advice to private equity firms on fund structuring, as well as to investors on making investments in private equity funds (upstream advice). Our focus also extends to advising private equity funds on the investment of capital received from investors in the acquisition and sale of shareholdings (downstream advice) or transaction business. Our advisory services include, but are not limited to, the following:– or transaction business). Our advisory services include the following, among others:
Fund structuring
- Tax structuring for M&A and private equity transactions, including company acquisitions, mergers, joint ventures, financing rounds, and recapitalizations
- Process planning with consideration for VAT and other transaction-related taxes
- Tax due diligence
- Investment, financing, and distribution decision-making
- Choice of legal form when setting up a company, including foreign branches and foreign subsidiaries (inbound/outbound)
- Tax risk management including strategic preparation for tax audits
- Accounting and valuation options
- Reorganization and corporate restructuring
- Remediation measures
Declaration and accounting
Our tax return and accounting services include:
- Tax returns for partnerships (two-tier) and atypical silent partnerships, using the mirror image method
- Preparation of annual financial statements in accordance with HGB (German Commercial Code)
- Declaration of trusts in tax returns
- Uniform and separate profit assessments for domestic and foreign personal investment companies (section 18 InvStG)
- External tax returns for foreign capital investment companies (§19 InvStG, §§7 ff. AStG)
- Tax returns for family foundations
- Inheritance and gift tax returns, including valuation of business units and real estate according to the German Valuation Act (Bewertungsgesetz), with a combined assets statement
Family business
The TAXGATE team provides professional and strategic services to family businesses and entrepreneurial families in all matters related to structuring their national and international investments. Our expertise includes the structuring, legal review, and implementation of investments and financing, company and group restructurings, corporate succession, succession planning for high-net-worth individuals, foundation planning, and transaction execution.
With the increasing international mobility of shareholders, issues such as international tax law and exit taxation are becoming more prominent.
Our team offers many years of extensive professional experience, providing services such as:
- Comprehensive tax assessment of domestic and international investments (company acquisitions, permanent establishments, joint ventures, property purchases)
- Legal advice on business structures and reorganizations
- Assistance with new company formations
- Consultancy and execution of cross-border restructurings
- Drafting of shareholder and joint venture agreements
- Structuring and implementation of management participation programs
- Foundation establishment and planning
- Support in shareholder disputes
- Corporate governance guidance, including advisory board utilization
- Complex international tax declarations (inheritance/gift tax, AStG)
Tax audit and tax dispute
Tax audits and other tax proceedings can often lead to prolonged conflicts with tax authorities, which may escalate into criminal tax cases. The primary objective, beyond resolving the tax dispute, is to prevent unjustified tax claims, which could have implications for future assessment periods. Effective communication during tax proceedings is essential to avoid criminal law risks, and well-functioning tax compliance is critical for directors and board members to mitigate liability.
Our tax litigation and tax compliance services include:
- Managing the appeal process, from objection to legal action
- Support during tax audits
- Assistance with tax disputes involving tax-oriented investments and structured financing (e.g., cum/ex arrangements, private label funds, tax deferral models)
- Preventive advice on criminal law risks for bank employees, initiators, and financial service providers
- Risk analysis for criminal tax law in the corporate sector
- Correction of tax returns
- Representation in criminal tax proceedings
- Task force support for search and seizure situations
Legal Services
In addition to tax structuring advice, TAXGATE Partners supports you with the legal execution of the related measures. Our services include:
- Establishment of companies, drafting partnership agreements, and managing director service agreements
- Documentation of fund structures and financial instruments
- Contracts for reorganizations (mergers, legal form changes, spin-offs, holding structures)
- Licence agreements
- Company purchase agreements (asset deals, share deals)
- Financing agreements (loan agreements, silent partnerships, profit participation rights, capital contribution resolutions, capital increase)
- Shareholder agreements, co-investor documentation, management participation programs
- Intercompany agreements, group allocation agreements, joint venture agreements
- Property purchase agreements
- Wills and inheritance contracts
Your challenge is our priority
In a non-binding consultation, we’ll work together to explore the best options for you and how we can assist.
