ᐅ Registering a Business as a Self-Builder – Is It Worthwhile?

What is supposed to be the advantage?

Chamber fees
Broadcasting fees
Business liability insurance
Annual financial statement
Trade tax
Value-added tax
Income tax
Registration for payroll and social security obligations for all construction helpers
Wages above minimum wage
And so on

And then the tax office classifies it as a hobby business.

alexisan schrieb:
I once heard that it makes sense to register a business for self-building.

I have to smile a bit.
I know this from a satire back in the 1970s.
Maybe it’s time to recommend the film to our home-building Netflix fans.
Once in a Lifetime – The Story of a Home
Available as two purchase DVDs.

The couple goes through every cliché and every mistake, including registering a business so they can buy the cladding and tiles themselves. So it’s possible that your grandfather gave you that tip.

I don’t think a sole proprietorship offers advantages in trading.
The benefits are in networks, and those don’t exist on paper alone.
I also wouldn’t dismiss the obligations involved so easily.

P.S. I took a look at your other questions. It sounds like you might be taking on too much: spending money without professional knowledge.

haydee schrieb:
What is supposed to be the advantage?

Example:
The house belongs to the established company.
Tax benefits arise when selling the company (with corresponding profit). Instead of an income tax on the profit of up to 45%, only 25% capital gains tax applies. You can sell at a higher price because the buyer of the company does not have to pay property tax. After all, the company changes ownership while the house and land owner remains the company.

There are many more examples. Unfortunately, this is only for professionals with substantial capital. As the saying goes: The devil always sh*ts on the biggest pile. Most of us are more focused on creating the pile ourselves.

You establish a GmbH to pay only 25% tax, which would not be payable otherwise.

The original poster wants to build their house with a lot of personal labor.

Helpers without a business license work tax- and social security-free, well below minimum wage because they are unpaid.

Sale after 10 years is tax-free
(as long as no other properties are sold during that time).

You asked for a reason. The original poster heard something at some point. That’s why I gave a common example. I also assume it’s not relevant for the original poster.

Hello,

Buying as a company to get better prices—that is something I could consider.
Everyone who has written here does not seem to have experience with this topic.

Thanks anyway for now.

Regards, Alex