As in many other countries, land tax in Germany is one of the main sources of revenue for municipalities. The tax is levied on the ownership of land, including plots of land, buildings and structures thereon.
There will be an increase in the land tax from about 2025, and the tax will also vary greatly in the individual federal states. Every property owner in Germany must submit a land tax declaration to the tax office for inspection by 31.01.2023. The tax office will then carry out a check on the owner's declaration until the end of 2024. From 2025, a new land tax rate will be established.
An example of calculating the tax for a One-family house for different lands:
- Suppose the plot of land on which the house is located has an area of 500 sq.m. The living space is 200 square meters. In Berlin, for example, the tax on this plan property will be 1876 euros per year. By reference, in Stuttgart for the same property owner must pay 2366 euros per year. And in Hamburg - only 392 euros. The calculations of the basic amount of land tax varies considerably due to different valuation models.
Many lands still do not have hundreds of thousands of property tax declarations, not all property owners have met the reporting deadlines. Many property owners consider the new tax unfair. They believe that the current tax is already high enough and that an increase will only worsen the current situation in the country. Tax authorities already fear a big wave of objections. However, the German government argues that the tax increase is necessary to strengthen the financial sustainability of municipalities and provide essential services to the public.
If you have not yet filed your land tax declaration, Dominart Real Estate GmbH can help you with this question and we also provide other services regarding the management of residential and commercial property. We will be in touch with you by email at kontakt@dominartinvest.com, by telephone at + 49 (30) 516 417 63 and also by online chat at https://dominartinvest.com.
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