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Taxes

Selling GmbH Shares: Taxes Explained for Shareholders

Selling GmbH shares? Learn how taxes apply to majority and minority shareholders, family businesses and holding structures — with clear examples.

Selling shares is not a “standard” transaction

Selling shares in a GmbH is often perceived as a simple transaction. In reality, it is one of the most underestimated tax scenarios in the mid-market.

This is especially true when:

  • multiple shareholders are involved

  • minority stakes are sold

  • the company is family-owned

Identical sale prices can result in very different net outcomes — depending purely on structure.


1. When is a sale considered a “share sale” for tax purposes?

From a tax perspective, what matters is not that a company is sold, but that:

  • shares in a capital company are sold

  • by one or more shareholders

It is irrelevant whether:

  • 100% or only 5% of the shares are sold

  • the buyer is an investor, co-shareholder or family member

The decisive factors are:

  • size of the shareholding

  • holding period

  • seller structure (private individual vs holding company)


2. Which taxes apply when selling GmbH shares?

Sale from private ownership (most common case)

If a shareholder holds at least 1% of the GmbH (typical in SMEs), the partial income method (Teileinkünfteverfahren) applies:

  • 60% of the capital gain is taxable

  • 40% is tax-free

  • the taxable portion is subject to personal income tax

Effective tax burden: typically 25–30%


Example: Minority shareholder

  • Shareholding: 20%

  • Sale price: €2.0m

  • Acquisition cost: €0.2m

  • Capital gain: €1.8m

Tax calculation:

  • 60% of €1.8m = €1.08m taxable

At approx. 45% income tax:

  • Tax due: ~€486k

  • Net proceeds: ~€1.51m


3. Multiple shareholders: where complexity starts

In companies with several shareholders, the following issues are common:

Different tax positions

  • Founders vs later entrants

  • Private ownership vs holding structures

  • Different acquisition costs

👉 Same gross price, different net outcomes.


Purchase price structures affect shareholders differently

  • Earn-outs often disadvantage minority shareholders

  • Seller loans or rollovers have different tax timing effects

Without coordination, internal conflict is almost guaranteed.


4. Selling minority stakes: specific pitfalls

Selling minority stakes is not tax-privileged, but often economically weaker.

Typical issues

  • Valuation discounts

  • Limited influence on deal structure

  • Reduced say in share vs asset deal decisions

From a tax perspective:

  • The partial income method still applies

  • No relief due to minority status

👉 Minority does not mean lower tax.


5. Family businesses: selling shares within the family

Special care is required when:

  • shares are sold to children or relatives

  • sale and gifting elements are combined

Typical risks

  • hidden gifts (tax reclassification)

  • incorrect valuation

  • conflicts between income tax and inheritance tax

A defensible valuation is essential to avoid future tax disputes.


6. Holding structures for shareholders

If shares are held via a holding company:

  • 95% of the capital gain is tax-exempt

  • effective tax rate approx. 1–2%

  • proceeds can be reinvested almost tax-free

However: In mixed shareholder groups (private + holding), net proceeds can differ dramatically — often leading to tension.


7. The most common shareholder mistakes

“This only affects the majority owner”

Incorrect — each shareholder is taxed individually.


“We’ll just split the price pro rata”

That works gross — not net.


“The notary will structure this”

Notaries notarise. They do not optimise transactions.


Conclusion: Selling shares requires structure, not assumptions

Selling GmbH shares is not a side topic. In companies with multiple shareholders, tax structuring determines whether:

  • outcomes are fair

  • conflicts are avoided

  • net proceeds are predictable

Those who sell without clarity usually lose more than money — they lose trust among shareholders.

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