Vonovia's Tax Maneuver Sparks Political Outrage in Germany

The real estate giant avoids paying hundreds of millions in taxes through a legal loophole, prompting criticism from politicians across the spectrum.

Vonovia is using a legal tactic to avoid paying approximately one billion euros in real estate transfer taxes by acquiring remaining shares of Deutsche Wohnen.
The maneuver involves creating a joint venture with Apollo, reducing Vonovia's ownership stake to circumvent the 90% threshold that triggers tax payments.
This strategy has resulted in potential tax revenue losses of hundreds of millions of euros for Berlin.
Politicians from various parties, including CDU/CSU and SPD, have voiced their disapproval and called for legislative action to close such tax loopholes.
Critics argue that while Vonovia's actions are legal, they represent a significant ethical concern and a betrayal of public trust.