ᐅ Turnkey vs. Individual Contracting

Created on: 8 Jul 2020 09:33
X
XAMMAX2
Dear Forum,

After much back and forth, I am still unsure about what to do.
It concerns a single-family house (9.50 x 11 m (31.2 x 36.1 ft)) built with solid construction.
The original idea was a turnkey project, but a friend suggested contracting individual trades to save money.
I want to source the following services from a single company (a shell construction company from our region):

- Two full floors
- KFW 55 energy standard
- Hipped roof with about a 20-degree pitch
- House with approximately 9.50 m by 11 m (31.2 ft by 36.1 ft) external dimensions
- Roof structure including roofing metalwork
- Planning application including building permits / planning permission
- Structural engineering (construction start notification)
- Windows
- Front door
- Construction management for our trades

This approach aims to ensure that the house at least “stands” completely and is weather-tight.
Question 1:
The offer for this is about €190,000. What do you think?

The same provider wants approximately €380,000 for the turnkey house (separate offer).
Question 2:
What do you think about the difference between €190,000 and €380,000?

Assuming I take only the basic construction stage and hire the trades myself, can I manage to stay under €190,000 (the difference between €380,000 and €190,000)?

Thank you very much
I
Ideensucher
8 Jul 2020 15:42
On which amount is the property transfer tax actually paid in case of individual contracting? Only on the shell construction? It’s not even habitable. On the other hand, how is the tax office supposed to know what parts of the house I do myself and what is done by a company?
Depending on the state, with a total of 200,000 euros, this could mean up to 13,000 euros less property transfer tax on the main invoice that you wouldn’t have to pay.
S
Sparfuchs77
8 Jul 2020 15:53
Property acquisition tax applies to the land purchase price.

Unless you buy the land and house together from a developer. In that case, the tax applies to the entire amount.
Y
Yosan
8 Jul 2020 15:54
So, either you buy a plot of land without a house, then you pay the property transfer tax on the purchase price of the land. Or you buy a plot of land with a house (existing or from the developer), then the property transfer tax is due on the total purchase price.
11ant8 Jul 2020 15:56
Ideensucher schrieb:

On what amount is property transfer tax paid with a separate contract? Only on the shell construction?
I think you are confusing the terms general contractor and developer here. You do not pay any property transfer tax on the improvement of your land.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
I
Ideensucher
8 Jul 2020 16:03
Sparfuchs_ schrieb:

Unless you buy land and house together from a developer. Then the tax applies to everything.
Yes, that’s what I meant. Developer-linked plots are not uncommon either.
By EVERYTHING, do you mean
1) tax on (land + turnkey house) or 2) tax on (land + turnkey house + total prices of individual trades) ?
Y
Yosan
8 Jul 2020 16:06
Ideensucher schrieb:

Yes, that’s what I meant. Developer-tied plots are quite common as well.
Does EVERYTHING mean
1) tax on (land + shell house) or 2) tax on (land + shell house + total price of individual trades)?

I would say: tax applies to everything you buy from that developer.
So if you buy the land + shell house from them, then it’s that. If you buy land + turnkey, then the tax applies to that.
That’s how I would interpret it, but I could be wrong.