Attention homeowners: Property tax reform hits millions with violent increases!

Attention homeowners: Property tax reform hits millions with violent increases!

The upcoming reform of property tax will be the topic for many German real estate owners from January 1, 2025. After a long wait, the federal government decided to reform the existing system as a reaction to a judgment of the 2018 Federal Constitutional Court, which declared the old evaluation procedure as unconstitutional. Now many homeowners have the question of how much they actually have to pay.

In Berlin, many homeowners still grit in the dark, since the lifting rates necessary for the calculation have not yet been sent in most cases. A spokesman for the responsible finance ministry said that the municipalities are expected to determine the new lifting rates from autumn 2024. "We recommend waiting for your municipality's new property tax notice," said the recommendation. In some federal states, such as Hesse and North Rhine-Westphalia, they will only send this decision in the new year, which causes unrest for many owners.

The effects on property owners

The owner association Haus & Grund expressed significant concerns about the reform. Association President Karl Warnecke criticized that "around 90 percent of households" do not yet know which taxes you have to expect in the coming year. According to Warnecke, this is "absurd and real state failure", especially since the state had over six years for the reform. Many homeowners in Germany are therefore faced with the uncertainty that their costs could increase and warned warning: "It can be expected that millions of households must expect significantly higher costs." Initial estimates even include an additional burden of over 1000 euros per year.

The municipal lifting rates that determine the percentage for the final calculation of property tax are very different. Some examples make the dimensions clear: Owners of a family home in Berlin-Karlshorst will pay 784.30 euros instead of the currently 242.24 euros. In Bremen, the amount for a single -family house will increase from EUR 154.55 to EUR 765.86. The increase in an apartment building in downtown Berlin is particularly drastic: Here, the costs of 1652.44 euros double to EUR 3195.06.

extreme cases and the topic of acceptance

Special attention received a case of a pensioner couple from Stuttgart, which should now pay a proud 2,875 euros in property tax instead of 195 euros. "This is more than 14 times. This borders on expropriation," said the affected pensioner and thus reflects the emotions of many, which feel economically put under pressure. An orchard on the Rügener Mönchgut peninsula also struggles with an increase of one euro per square meter to 220 euros per square meter. These enormous accumulations could harm the acceptance of the entire reform, warned experts.

The tax offices are faced with the challenge of re -calculating property tax for around 36 million properties. The reform has the potential to have far -reaching financial effects on the owners, but many questions remain unclear. From 2025, the property tax will usually be due quarterly, with the key days of February 15, May 15, August 15 and November 15. In larger cities like Munich there is also the possibility to make the annual payment at once, provided that a corresponding application is submitted by September 30th.

The uncertainty and the impending financial burdens are a challenge for both real estate owners and the municipalities. From now on it is crucial for the owners to find out more about the upcoming reform in order not to experience any unpleasant surprises.