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On 27 April 2023, the Court of Justice of the European Union (CJEU) decided in the case C-537/20 (L Fund) that Germany infringes the free movement of capital by subjecting the income earned by a foreign specialised property fund on German property income to corporate taxation, whereas resident specialised property funds are exempted from corporate tax.

This judgment is of great importance to foreign specialised property funds and other similar non-resident investment vehicles. Those foreign specialised funds should consider lodging an appeal against their German tax assessment notices
after analysing the individual case.