Corporate real estate

Sooner or later, not only institutional investors but all other companies as well will be faced with the need for a market value appraisal – whether to optimise their tax position or to establish a fair purchase or sale price.

Real estate held as business assets and the reasons for its valuation can vary considerably. The most common reasons include the threat of compulsory real estate redemption procedures, the sale of property, or the transfer of immovable assets into or out of business ownership.

When a portion of a property used for business purposes is transferred to private assets, a taxable capital gain arises. Conversely, when property or land is contributed from private to business assets, the valuation must be based on the historical acquisition or production costs. If the partial value (normally the market value) is lower at the time of contribution, this lower value must be used.

Since 1 April 2012, contributions of buildings must also be valued at the lower of the partial value or the adjusted acquisition or production costs.