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Mildly related. A lot of countries have limits on physical cash transactions. Germany doesn’t. You can buy a mansion and pay for it in physical cash. Apart fro
by leipert 4y ago
Mildly related. A lot of countries have limits on physical cash transactions. Germany doesn’t. You can buy a mansion and pay for it in physical cash.
Apart from the tax implications, it is an effective way to launder money. Apparently organized crime really likes this and buys real estate en masse.
- Double_a_92 4y agoI still don't understand how those supposed money laundering plots work. E.g. if you buy a house with dirty money, wouldn't the tax agency still ask you why you suddenly own a house and how you could afford to buy it? My tax agency already asks questions if my living costs seem too low...
- bobthepanda 4y agoWell, table stakes are to obfuscate you. A nesting doll of shell companies buys the house on your behalf that you live in. In a lot of cases tax agencies also lack the means or authority to verify the cleanliness of money obtained abroad.
- leipert 4y agoThey pay taxes on it. This is why the state “doesn’t care”. As far as I recall, when you buy a house, the notary is supposed to check where the money is coming from, but this can be more of a handwavey thing. This is a slightly older article, I am on the go and didn’t find anything more in depth in English: https://m.dw.com/en/german-real-estate-market-a-hotbed-of-money-laundering-transparency-reports/a-46637937 https://m.dw.com/en/german-real-estate-market-a-hotbed-of-mo...
- wolongong942 4y agoIn NZ or Aus the house would be taken under civil forfeiture, with you having to show a legit paper trail for the money to get your asset back. I think they're making it so you don't even have to be associated with any crime, and nothing has to be proven beyond reasonable doubt because it's civil.