{"id":9879,"date":"2025-01-29T13:14:22","date_gmt":"2025-01-29T12:14:22","guid":{"rendered":"https:\/\/meine-renditeimmobilie.de\/?p=9879"},"modified":"2025-01-29T13:13:59","modified_gmt":"2025-01-29T12:13:59","slug":"marital-swing-property-regime-swing-in-real-estate-advantages-disadvantages-and-risks","status":"publish","type":"post","link":"https:\/\/meine-renditeimmobilie.de\/en\/marital-swing-property-regime-swing-in-real-estate-advantages-disadvantages-and-risks\/","title":{"rendered":"Marital Swing (Property Regime Swing) in Real Estate: Advantages, Disadvantages, and Risks"},"content":{"rendered":"<p style=\"font-weight: bold\">\r\n\tWith the so-called &#8220;Ehegattenschaukel,&#8221; commonly referred to as the &#8220;marital swing&#8221; or &#8220;property regime swing,&#8221; a method of mutual buying and selling of rented properties between first-degree relatives, taxes can be saved, because new depreciation potential at market value gets generated with each sale.\r\n<\/p>\r\n<p style=\"font-weight: bold\">\r\n\tThe &#8220;Ehegattenschaukel&#8221; is particularly suitable for first-degree and, in some cases, second-degree relatives who trust each other and own multiple properties. In this arrangement, each of the two involved parties usually holds about half of the total real estate portfolio.\r\n<\/p>\r\n\r\n<section>\r\n\t<h2>First (direct) and second (collateral) line \u2013 With which relatives is the &#8220;Ehegattenschaukel&#8221; allowed?<\/h2>\r\n\t<p>\r\n\t\tThe &#8220;swing&#8221; is possible among all direct relatives, i.e., first-degree relatives, such as between child and parents, between grandchild and grandparents, and between parents themselves.\r\n\t<\/p>\r\n\t<p>\r\n\t\tSiblings are not direct-line relatives but belong to a collateral line. Therefore, the &#8220;Ehegattenschaukel&#8221; is <em>not<\/em> possible between siblings.\r\n\t<\/p>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Utilizing Multiple Tax Advantages<\/h2>\r\n\t<p>\r\n\t\tThe &#8220;Ehegattenschaukel&#8221; combines several tax and other financial benefits.\r\n\t<\/p>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\tThere is usually no real estate agent involved between relatives, which saves brokerage fees of 2 to 8 percent. While this benefit is not exclusive to the &#8220;swing,&#8221; it is almost always applicable here.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tNo real estate transfer tax is incurred, eliminating additional costs ranging from 3.5 to 6.5 percent, depending on the federal state.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tEven notary fees can be saved if the transactions are carried out within a civil law partnership (GbR). Since the GbR remains unchanged as the registered owner in the land register, there is no need to amend it. Instead of a land register entry, only the GbR contract is modified for each sale, eliminating the need for a notary. At times, one party holds 100 percent of the GbR shares while the other holds 0 percent, and then it reverses.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tNew depreciation potential: Selling at the current market value creates new and higher depreciation volumes (&#8220;Absetzung f\u00fcr Abnutzung&#8221;), allowing the buyer to reduce their tax burden.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Requirements for the &#8220;Ehegattenschaukel&#8221;<\/h2>\r\n\t<p>\r\n\t\tTo successfully apply the tax-saving method of the &#8220;Ehegattenschaukel,&#8221; the following conditions must be met.\r\n\t<\/p>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\tBuyer and seller must be directly related, such as grandchild, child, parent, or grandparent.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tDomestic property: The property must not be located abroad.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tInvestment property instead of personal use: As with a standard real estate purchase, the property must be rented out to utilize depreciation benefits.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tMarket-compliant conditions and process: The purchase price must not be exceptionally low, nor may the purchase price or parts of it be gifted. Otherwise, it would constitute a disguised gift.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n<\/section>\r\n\r\n<section>\r\n\t<h2>Potential Disadvantages of the &#8220;Ehegattenschaukel&#8221; \/ Property Regime Swing<\/h2>\r\n\t<p>\r\n\t<\/p>\r\n\t<ul>\r\n\t\t<li>\r\n\t\t\tUnequal distribution of real estate ownership in the event of an (unexpected) divorce: Ideally, multiple properties are &#8220;swung,&#8221; and each party (e.g., husband and wife) continuously holds half of the real estate portfolio.\r\n\t\t<\/li>\r\n\t\t<li>\r\n\t\t\tNon-recognition by tax authorities: If the purchase arrangements are not structured at market conditions, the tax office may reject the setup and demand repayment of tax benefits.\r\n\t\t<\/li>\r\n\t<\/ul>\r\n<\/section>\r\n\r\n\r\n","protected":false},"excerpt":{"rendered":"<p>With the so-called &#8220;Ehegattenschaukel,&#8221; commonly referred to as the &#8220;marital swing&#8221; or &#8220;property regime swing,&#8221; a method of mutual buying [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_locale":"en_US","_original_post":"https:\/\/meine-renditeimmobilie.de\/?p=9866","footnotes":""},"categories":[197],"tags":[],"post_folder":[240],"class_list":["post-9879","post","type-post","status-publish","format-standard","hentry","category-taxes","en-US"],"_links":{"self":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/9879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/comments?post=9879"}],"version-history":[{"count":5,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/9879\/revisions"}],"predecessor-version":[{"id":9942,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/posts\/9879\/revisions\/9942"}],"wp:attachment":[{"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/media?parent=9879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/categories?post=9879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/tags?post=9879"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/meine-renditeimmobilie.de\/wp-json\/wp\/v2\/post_folder?post=9879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}