Growth Opportunities Act and Interest Barrier – Restricting instead of Growing
The extensive draft (just under 280 pages) for a law to strengthen growth opportunities, investment and innovation as well as tax simplification and tax fairness (Growth Opportunities Act) contains a number of changes that are important for the real estate industry. We had presented the adjustments envisaged for real estate funds in the Investment Tax Act as a result of the Growth Opportunities Act in our beinformed dated July 27, 2023. Today, we would like to highlight the - in implementation of the ATAD - planned, far-reaching changes to the previous interest barrier regulation as well as the additional introduction of a so-called interest rate cap (Zinshöhenschranke) by the Growth Opportunities Act.
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