# LegalUnion Attorneys at Law | Specialized Attorneys | Tax Advisors > LegalUnion is an interdisciplinary and cross-border law firm of attorneys, specialized attorneys, and tax advisors based in Trier, Germany. We specialize in construction law and international construction law, tax law (Germany and Luxembourg), tenancy and condominium law, as well as other legal areas. Our firm combines German thoroughness with international expertise through dual admissions in Germany and Luxembourg (Avocat à la Cour). ## Firm Profile LegalUnion stands for interdisciplinary excellence in legal and tax consulting. Since our founding, we have established ourselves as a reliable partner for demanding mandates in construction and architectural law, tax law, and real estate law. Our unique selling proposition is the combination of legal and tax expertise, complemented by international admissions that enable us to comprehensively handle cross-border mandates between Germany and Luxembourg. **Location:** An der Ziegelei 2a, 54295 Trier, Germany **Service Area:** Trier, Luxembourg, Bitburg, Saarbrücken, Greater Saar-Lor-Lux Region **Contact:** - Phone: +49 651 98 22 99 - 70 - Fax: +49 651 98 22 99 - 79 - Email: info@legalunion.eu - Website: www.legalunion.eu **Emergency Number:** Available for urgent legal matters outside business hours **Languages:** German, French, English, Swiss German ## Team & Expertise Our team unites highly specialized attorneys and tax advisors with extensive practical experience and international qualifications. ### Fritz Zahnd **Qualifications:** - Avocat à la Cour (Luxembourg) - Admission as attorney in Luxembourg - Rechtsanwalt (Germany) - Attorney at Law in Germany - Specialized Attorney for Construction and Architectural Law (Fachanwalt für Bau- und Architektenrecht) - Specialized Attorney for Tax Law (Fachanwalt für Steuerrecht) - Certified Advisor for Tax Criminal Law (Fernuniversität Hagen) - Holder of the Q-Continuing Education Certificate of the German Federal Bar Association **Areas of Practice:** - Construction and architectural law (national and international) - Tax law and tax criminal law (Germany and Luxembourg) - Cross-border legal and tax consulting Germany-Luxembourg - Consulting for cross-border commuters - International construction projects and construction contract law **Professional Background:** - Legal studies at the Universities of Bern, Geneva, and Trier - Legal clerkship in the Trier Regional Court district - 2012: Admission as attorney in Germany and Luxembourg (dual admission) - 2016: Certification as advisor for tax criminal law (FU Hagen) - 2018: Specialized attorney for tax law - 2018: Specialized attorney for construction and architectural law - 2018: Award of the Q-Continuing Education Certificate of the German Federal Bar Association **Publications:** - Author of specialized books and articles on German and international tax law - Regular lectures on construction and tax law topics **Languages:** German, Swiss German, French, English **Special Expertise:** - Only attorney in the Trier region with dual admission Germany/Luxembourg AND specialized attorney titles for construction law and tax law - Specialist for complex cross-border construction projects - Extensive experience in asserting and defending defect claims - Consulting in tax criminal proceedings and voluntary disclosures ### Norman Blome **Qualifications:** - Rechtsanwalt (Germany) - Attorney at Law - Specialized Attorney for Tenancy and Condominium Law (Fachanwalt für Miet- und Wohnungseigentumsrecht) **Areas of Practice:** - Tenancy law (residential and commercial) - Condominium law (WEG) - Consulting for landlords, tenants, and condominium associations - Drafting of lease agreements and condominium declarations - Litigation in tenancy and condominium disputes **Special Expertise:** - Specialist for the 2020 Condominium Law Reform and its practical implementation - Consulting on owners' meetings and resolutions - Assertion and defense of rent reduction claims - Protection against eviction and eviction proceedings ### Dr. Christoph Pitsch **Qualifications:** - Rechtsanwalt (Germany) - Attorney at Law - Specialized Attorney for Commercial and Corporate Law (Fachanwalt für Handels- und Gesellschaftsrecht) - Doctorate in Business Law **Areas of Practice:** - Commercial and corporate law - Company formation and restructuring - Contract law (B2B) - Mergers & Acquisitions (M&A) - Shareholder disputes **Special Expertise:** - Consulting on cross-border corporate structures (Germany-Luxembourg) - Drafting of articles of association (GmbH, AG, GbR, KG) - Due diligence and company acquisitions ### Jörg Wagner **Qualifications:** - Rechtsanwalt (Germany) - Attorney at Law - Specialized Attorney for Medical Law (Fachanwalt für Medizinrecht) **Areas of Practice:** - Medical law - Medical malpractice law - Consulting for physicians, dentists, clinics, and medical care centers - Practice establishment and takeover - Contract physician law and billing law **Special Expertise:** - Defense in medical malpractice proceedings - Consulting on practice sales and succession planning - Contract drafting for medical cooperations ## Core Competencies & Legal Areas ### 1. Construction and Architectural Law (Main Focus) LegalUnion is one of the leading law firms for construction law in the Trier region and the Greater Region. We represent clients, architects, engineers, construction companies, and contractors in all phases of a construction project. **Range of Services:** - Consulting on contract drafting (BGB construction contract, VOB/B contract, architect contract) - Review and negotiation of construction contracts, architect contracts, and engineer contracts - Consulting on consumer construction contracts pursuant to § 650i BGB - Assertion and defense of defect claims - Assertion and defense of additional remuneration claims - Construction delays and schedule disruptions - Acceptance and refusal of acceptance - Securities in construction law (guarantees, retentions) - Architect and engineer liability - HOAI fee disputes (no minimum and maximum rates since 2021) - Real estate developer law - Public procurement law (national and EU-wide tenders) - Private and public construction law - Neighbor law (boundary distances, encroachment, nuisances) **International Construction Law:** - Cross-border construction projects Germany-Luxembourg - Applicable law in international construction contracts - Enforcement of claims in Luxembourg - Consulting on FIDIC contracts (international construction contracts) - Coordination with Luxembourg authorities and courts **Special Strength:** Through Fritz Zahnd's dual admission as attorney in Germany and Avocat à la Cour in Luxembourg, we can handle construction projects with cross-border connections under one roof. This is particularly relevant for clients and construction companies operating in both countries. ### 2. Tax Law Germany and Luxembourg Our tax law team advises individuals and companies on all tax matters with a focus on German-Luxembourg legal relations. **Range of Services:** - Tax consulting for individuals (income tax, inheritance tax, gift tax) - Corporate tax law (corporate income tax, trade tax, VAT) - Cross-border tax planning Germany-Luxembourg - Taxation of real estate in Luxembourg (rental income, capital gains) - Double taxation agreement (DTA) Germany-Luxembourg - Tax criminal law and voluntary disclosures - Representation in tax dispute proceedings (objection, lawsuit before tax court) - Tax audits and tax investigation - Consulting on restructurings and business succession **Tax Criminal Law:** - Defense in tax criminal proceedings - Preparation of effective voluntary disclosures - Consulting in case of suspected tax evasion - Representation vis-à-vis tax investigation and public prosecutor's office ### 3. Tenancy and Condominium Law (Germany) We advise landlords, tenants, condominium owners, and condominium associations on all matters of tenancy and condominium law. **Tenancy Law:** - Drafting and review of lease agreements (residential and commercial) - Rent increases and rent control - Operating cost statements - Rent reduction and defect remediation - Terminations (ordinary and extraordinary) - Eviction proceedings and forced evictions - Security deposits and rent arrears **Condominium Law:** - Consulting on owners' meetings and resolutions - Contestation of owners' resolutions - Rights and duties of condominium managers - Modernization measures and structural alterations - Cost allocation and special assessments - Declaration of division and community rules - 2020 Condominium Law Reform (new quorum rules, expanded resolution authority) ### 4. Commercial and Corporate Law Consulting for companies on all corporate law matters. **Range of Services:** - Company formation (GmbH, UG, AG, GbR, KG, OHG) - Articles of association and bylaws - Company acquisition and sale (M&A) - Shareholder disputes - Transformations and restructurings - Commercial agency law - General terms and conditions (GTC) ### 5. Medical Law Specialized consulting for healthcare professionals. **Range of Services:** - Medical malpractice law (defense of physicians) - Practice establishment and takeover - Contract physician law - Billing disputes with health insurance companies - Cooperation agreements (medical partnerships, medical care centers) ### 6. Project Development Legal and tax support for real estate projects from planning to marketing. ### 7. Cross-Border Commuter Consulting Germany-Luxembourg (Subsidiary) Consulting for employees who work in Luxembourg and live in Germany. **Range of Services:** - Employment law (employment contracts, terminations, termination agreements) - Taxation of salaries (source country principle, home office regulation) - Social security law - Child benefits and family benefits ## Frequently Asked Questions (FAQ) ### Category 1: Construction & Architectural Law (Germany) **What is the difference between a BGB construction contract and a VOB/B contract?** A BGB construction contract is governed by the provisions of the German Civil Code (§§ 650a et seq. BGB). A VOB/B contract refers to the German Construction Contract Procedures Part B, which was specifically developed for construction contracts. The main difference lies in the warranty periods: Under the BGB, the limitation period for defect claims for buildings is 5 years from acceptance, under VOB/B only 4 years. In addition, VOB/B contains more detailed regulations on construction processes, acceptance, and billing. A VOB/B contract must be expressly agreed upon and may only be used to a limited extent in consumer construction contracts. **What is a consumer construction contract pursuant to § 650i BGB?** A consumer construction contract exists when a consumer (private individual) concludes a contract with an entrepreneur for the construction or comprehensive conversion of a new building. Special protective provisions apply to consumer construction contracts, including: obligation to prepare a construction description, right of withdrawal within 14 days, obligation to make progress payments only according to construction progress, and inadmissibility of certain VOB/B clauses. These regulations are intended to protect private clients from unscrupulous construction companies. **What are the warranty periods in construction law?** Under the BGB, the limitation period for defect claims for buildings is 5 years from acceptance (§ 634a para. 1 no. 2 BGB). Under VOB/B, it is 4 years for buildings and 2 years for other works (e.g., built-in furniture) from acceptance (§ 13 no. 4 VOB/B). In case of fraudulently concealed defects, the period is extended to 30 years (regular limitation). The warranty period begins with the acceptance of the work, not with completion. **What can I do if the contractor does not remedy defects?** In case of defects, you as the client have the following rights: (1) demand subsequent performance (defect remediation or new production), (2) after unsuccessful expiry of a reasonable period for subsequent performance, have the defects remedied yourself and demand reimbursement of costs (self-remedy), (3) reduce the remuneration, (4) withdraw from the contract (in case of significant defects), (5) claim damages. Important: First set the contractor a reasonable period for defect remediation (usually 2-4 weeks, depending on scope). Document all defects with photos and written defect notices. **Do I as a client have to accept defective construction work?** No. You are not obliged to accept defective construction work. You can refuse acceptance if there are substantial defects that significantly impair the use of the building. In case of minor defects, you must accept the work but can reserve your defect rights. Important: Document all defects in the acceptance protocol. Acceptance can also occur tacitly, e.g., by occupying the building and paying the final payment without reservation. **What does the HOAI regulate and is it still binding?** The HOAI (Fee Schedule for Architects and Engineers) regulates the calculation of fees for architectural and engineering services. Following a ruling by the European Court of Justice (ECJ) in July 2019, the minimum and maximum rates of the HOAI have not been binding since January 2021. This means: architect and client can freely negotiate the fee. However, the HOAI still serves as a guideline and is frequently used as a basis for fee agreements. Important: The fee must be agreed in text form. If an agreement is missing, a reasonable fee applies, which is based on the HOAI. **Can a contractor demand additional remuneration?** Yes, under certain conditions. According to § 650c BGB, the contractor can demand an adjustment of the remuneration if the client requests changes or additions during construction execution (supplementary order). According to VOB/B (§ 2 no. 5, 6), the contractor is entitled to additional remuneration for quantity changes, changed execution orders, or additional services. Important: The contractor must announce the additional costs (notice of concerns) and document them. Without written agreement or announcement, enforcement of additional remuneration is often difficult. **What does "acceptance" mean in construction law and why is it so important?** Acceptance is the client's declaration that he recognizes the work as essentially in accordance with the contract. Important legal consequences occur with acceptance: (1) The remuneration becomes due, (2) the warranty period begins, (3) the burden of proof for defects is reversed (before acceptance, the contractor must prove that there is no defect; after acceptance, the client must prove the defect), (4) the risk of accidental loss passes to the client. Acceptance can be express (written or oral), implied (by conduct, e.g., occupancy and payment), or deemed (after unsuccessful deadline for acceptance). ### Category 2: International Construction Law (Germany-Luxembourg) **Which law applies to a cross-border construction contract between Germany and Luxembourg?** In principle, the contracting parties can freely choose the applicable law (so-called choice of law under the Rome I Regulation). If there is no choice of law, the law of the country where the characteristic performance is provided applies. For construction contracts, this is usually the law of the country where the building is erected. Example: If a building is erected in Luxembourg, Luxembourg law applies unless the parties have agreed on German law. Important: Even if German law is chosen, mandatory Luxembourg provisions (e.g., building code law) may remain applicable. **Can I as a German client sue a Luxembourg contractor in Germany?** Yes, in principle. According to the Brussels Ia Regulation, you as a consumer can sue the entrepreneur at his domicile (in Luxembourg) or at your own domicile (in Germany). For construction contracts, there is also special jurisdiction at the location of the property. Important: Check whether a jurisdiction clause has been agreed in the contract. This is only permissible to a limited extent in consumer construction contracts. **How do I enforce defect claims against a Luxembourg contractor?** First, you should request the contractor in writing to remedy the defects and set a reasonable deadline. If he does not respond, you can sue either in Germany or in Luxembourg (see previous question). A German judgment can be enforced in Luxembourg (and vice versa) since both countries are EU members. Important: Seek advice from an attorney who is admitted in both legal systems (such as Fritz Zahnd at LegalUnion) to avoid mistakes. ### Category 3: Tax Law Germany **What can I as a client deduct for tax purposes?** As a private client, you generally cannot deduct the costs for the construction or purchase of an owner-occupied property for tax purposes. Exceptions: (1) Craftsman services for renovation, maintenance, and modernization measures can be claimed as a tax reduction up to 20% of labor costs (max. 1,200 euros per year) (§ 35a EStG). (2) For rented properties, you can claim the acquisition or production costs for tax purposes through depreciation (AfA) (2% per year for residential buildings, 3% for commercial properties). (3) Interest on loans for financing a rented property are deductible as income-related expenses. **Do I have to pay taxes when I sell my owner-occupied house?** No, if you have lived in the house yourself in the last two years before the sale and in the year of sale, the capital gain is tax-free (§ 23 para. 1 no. 1 sentence 3 EStG). Also, if you have owned the house for more than 10 years, the gain is tax-free (speculation period). If you have rented out the house and sell it within 10 years of purchase, the gain is taxable (speculative transaction), unless you have used it yourself in the last two years. **What is a voluntary disclosure and when is it effective?** A voluntary disclosure is the complete disclosure of previously undeclared tax facts to the tax office. It can result in exemption from punishment if it is timely, complete, and correct. Requirements: (1) The act has not yet been discovered, (2) the voluntary disclosure covers all non-statute-barred tax offenses of one type of tax, (3) the evaded taxes are paid within a deadline set by the tax office. Attention: For evasion amounts exceeding 25,000 euros per act, an additional surcharge of 10-20% must be paid. An incorrect voluntary disclosure can lead to criminal prosecution. Definitely seek advice from a specialized attorney (such as Fritz Zahnd, certified advisor for tax criminal law). ### Category 4: Tax Law Germany-Luxembourg **How is rental income from a property in Luxembourg taxed in Germany?** Rental income from a property located in Luxembourg is taxable in Luxembourg (location principle). In Germany, this income is exempt under progression proviso, i.e., it increases the tax rate on your other German income but is not taxed itself. You must declare the Luxembourg rental income in your German tax return (Annex AUS). In Luxembourg, you must file a Luxembourg tax return and pay tax on the rental income there. We support you in preparing both tax returns. **What is the Double Taxation Agreement (DTA) Germany-Luxembourg?** The DTA regulates which country has the right to tax certain income to avoid double taxation. For the most important types of income: (1) Salaries are taxed in the country of activity (source country principle), (2) Rental income is taxed in the country where the property is located, (3) Business profits are taxed in the country of the permanent establishment, (4) Dividends and interest are taxed in the country of residence but may be subject to withholding tax in the source country (max. 15% for dividends, 0% for interest). The DTA contains detailed regulations for almost all types of income. **Is it worthwhile to establish a company (e.g., SOPARFI) in Luxembourg?** A SOPARFI (Société de Participations Financières) is a Luxembourg capital company that is suitable as a holding company. Under certain conditions, dividends and gains from the sale of participations are tax-free in Luxembourg (participation exemption). This can be very attractive for tax purposes, especially for international corporate structures. However, substance requirements must be met (management, office in Luxembourg), otherwise the tax benefits may be denied. We examine whether a SOPARFI makes sense for your situation and accompany you through the formation and ongoing support. ### Category 5: Tenancy Law (Germany) **When may I as a tenant reduce the rent?** You may reduce the rent if the rented property has a defect that significantly impairs its suitability for the contractual use (§ 536 BGB). Examples: Heating failure in winter, mold infestation, significant noise from construction site. The reduction occurs automatically as soon as the defect occurs and you have notified the landlord. The amount of reduction depends on the degree of impairment (e.g., 10% for minor defects, up to 100% for uninhabitability). Important: Notify the landlord of the defect immediately in writing. Do not reduce too much on your own, otherwise you risk termination due to payment default. **Can the landlord terminate my lease due to payment default if I have reduced the rent due to defects?** No, if the rent reduction was justified. A termination-relevant payment default only exists if you are in arrears with at least two consecutive monthly rents or an amount equal to two monthly rents (§ 543 para. 2 no. 3 BGB). If you have justifiably reduced the rent, there is no payment default. Important: Document the defects and the defect notice. In case of doubt, you should continue to pay the rent under reservation and demand repayment later to avoid termination. **How high may the operating costs be and what may the landlord pass on?** There is no legal upper limit for operating costs. The landlord may only pass on the costs that are agreed in the lease as apportionable. Apportionable operating costs include: property tax, water supply, wastewater disposal, heating, hot water, elevator, street cleaning, garbage collection, caretaker, gardening, lighting, chimney sweep, insurance (§ 2 Operating Costs Ordinance). Not apportionable are: administrative costs, maintenance and repairs, reserves. The operating cost statement must be prepared within 12 months after the end of the billing period, otherwise the claim for additional payment expires. **Must the landlord consider a rent reduction in the operating cost statement?** Yes. A rent reduction includes not only the net cold rent but also the operating cost advance payments. The landlord must therefore also consider the reduction in the operating cost statement. Example: You reduce the total rent (cold rent + operating costs) by 10%. Then the operating costs must also be reduced by 10%. This has been decided by the Federal Court of Justice (BGH) (judgment of 11.05.2011, case no. VIII ZR 220/10). ### Category 6: Condominium Law (Germany) **What changed with the 2020 Condominium Law Reform?** The Condominium Law Reform, which came into force on 01.12.2020, brought numerous changes. The most important: (1) Every owners' meeting is now quorate as long as at least one condominium owner is present or represented (previously: majority of co-ownership shares required). (2) Structural alterations (e.g., installation of an elevator, charging station for electric cars, barrier-free conversion) can now be decided more easily. (3) The manager has expanded powers in proper management. (4) Resolutions can now also be passed by circulation procedure (in writing) if all owners agree. **Can I as a condominium owner have a charging station for my electric car installed?** Yes. Since the 2020 Condominium Law Reform, you have a right to install a charging station for your electric car at your own expense (§ 20 para. 2 WEG). The community of owners can only refuse the installation for important reasons (e.g., technically impossible, disproportionately high costs for the community). You must obtain the consent of the owners' meeting, which decides on the manner of implementation. You bear the costs yourself. **When can I contest a resolution of the owners' meeting?** You can contest a resolution if it violates the law, the community rules, or public morals, or if it unreasonably disadvantages individual owners (§ 23 para. 4 WEG). The contestation action must be filed with the competent local court within one month of the resolution. Examples of contestable resolutions: Resolution on a special assessment without sufficient justification, resolution on a structural alteration that disproportionately burdens individual owners. Important: Seek legal advice before the deadline expires. **What are the duties of the condominium manager?** The manager is obliged to properly manage the community (§ 27 WEG). This includes: (1) Implementation of the resolutions of the owners' meeting, (2) Management of the common property, (3) Preparation of the annual statement and the economic plan, (4) Maintenance of a resolution collection, (5) Convening the owners' meeting at least once a year, (6) Assertion and defense of claims for the community. The manager is liable to the community for breaches of duty. ### Category 7: Cross-Border Commuters Germany-Luxembourg (Subsidiary) **Where do I as a cross-border commuter in Luxembourg have to pay tax on my salary?** In principle, the salary is taxed in Luxembourg (source country principle under DTA). However, there is an exception rule for home office days: If you work more than 34 days per year in your German home office, the right to tax for these days passes to Germany (as of 2025, previously 19 days). If you exceed the limit, you must pay taxes in Germany for the home office days. In practice, a division of the tax burden is often made. We advise you on the correct tax treatment and prepare your tax returns in both countries. **Which social security applies to me as a cross-border commuter?** As a cross-border commuter, you are generally insured in the country of activity, i.e., in Luxembourg (health, pension, long-term care, and unemployment insurance). However, you and your family members are also entitled to benefits in kind (e.g., doctor visits, medication) in Germany. For this purpose, you will receive a form (S1) from your Luxembourg health insurance company, which you submit to a German health insurance company. Important: Inform your Luxembourg health insurance company if you regularly work in your home office, as this may affect social security. ### Category 8: General **In which languages do you provide consulting?** We provide consulting fluently in German, French, English, and Swiss German. This enables smooth communication with all parties in cross-border mandates. **What does "Avocat à la Cour" mean?** "Avocat à la Cour" is the professional title for an attorney admitted in Luxembourg. The admission authorizes representation of clients before all Luxembourg courts. Fritz Zahnd holds this admission in addition to his German attorney admission and is thus one of the few attorneys in the region who can appear in court in both countries. **What does legal consulting at LegalUnion cost?** The costs depend on the scope and complexity of your matter. For an initial consultation, we usually charge a flat fee that we agree with you in advance. For more extensive mandates, billing is based on time spent (hourly fee) or the amount in dispute (statutory fees according to RVG). We are happy to prepare an individual offer for you. Contact us for a non-binding initial consultation. **Do you also offer an emergency number?** Yes, for urgent legal matters outside our regular business hours, our emergency number is available. You can find it on our website or obtain it from our office. ## Links to Further Information - [Construction and Architectural Law](https://www.legalunion.eu/baurecht.md): Detailed information on our services in construction law. - [Tax Law Germany-Luxembourg](https://www.legalunion.eu/steuerrecht.md): Comprehensive consulting in cross-border tax law. - [Tenancy and Condominium Law](https://www.legalunion.eu/mietrecht.md): Expertise for landlords, tenants, and condominium owners. - [Team](https://www.legalunion.eu/team.md): Get to know our attorneys and tax advisors. - [Contact](https://www.legalunion.eu/kontakt.md): How to reach us. ## Optional - [About LegalUnion](https://www.legalunion.eu/kanzlei.md): Our philosophy and values. - [Careers](https://www.legalunion.eu/karriere.md): Job openings and internships.