Property owners beware: The new property tax is coming

Everything important at a glance: What you need to do now.

This Article in Brief

From 2025, property tax will be levied on the basis of a new property valuation
As early as mid-2022, owners will have to actively declare the data required for the real estate revaluation to the tax office
Different data must be declared depending on the federal state

Anyone who owns property must pay property tax on it. Up to now, property tax had been calculated on the basis of standard values that date back to 1964 in the old federal states and 1935 in the new federal states. Since these values no longer adequately reflect today's actual property values, the tax assessment basis for property tax has been redefined by the legislature.

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New property tax from 2025

From 2025, property tax will then be calculated on the basis of new property values. The decisive factor for taxation will be the real estate values as of the cut-off date of January 1, 2022. For this reason, owners of land, houses or apartments must already submit a declaration of assessment to the relevant tax office this year. In the declaration of assessment, the owner must provide the tax office with all the information required for the revaluation of the real estate.

The request to submit the declaration of assessment was made by public notice. Customer-oriented municipalities draw the attention of their property tax payers to the tax declaration deadline; this is not the rule.

Important: The property owner is obliged to become active and submit a declaration of assessment. In the period from 01.07.2022 to 31.10.2022, the data basis for the survey of the real property must be communicated electronically to the tax office. The submission of the assessment declaration can be made by the land owner and taxpayer or by his tax advisor; however, the tax advisor must be commissioned separately for this purpose.

Which documents are necessary?

The following information is required as of the cut-off date of January 1, 2022:

Location of the land plot
Area of the plot
Standard land value
Type of use
Living space
Year of construction of the building

Depending on the federal state in which the property is located, additional information may be required. The reason for this is that the law contains an opening clause, according to which the federal states may in some cases carry out a different valuation than that provided for in the federal model.

The real estate market is also subject to constant change

Our lives are characterized by changes that can certainly affect our housing and living situation. The real estate market is also subject to change and can be influenced by new laws, interest rate fluctuations or economic developments, for example.

For this reason, as a real estate owner it is not only good to have a current level of knowledge about your own property. You should also keep an eye on whether your financial situation and your personal security are still up to date with all these changes.