The new property tax reforms the previous tax assessment. This reform was necessary because the Federal Constitutional Court ruled that the previous calculation method was outdated and no longer fair.

The new property tax is calculated on the basis of the property tax value. The property tax assessment notice is a document that determines the new market value of the property. Factors such as the land value, location and use of the property are taken into account here.

The property tax assessment notice contains the tax assessment figure, which is determined according to the type of building. This figure takes into account factors such as the construction method, age and fittings of the building.

The new property tax is calculated as follows Property tax value x property tax measurement figure x assessment rate = property tax. The assessment rate is the final value set by the local authority/city.

The reform may lead to significant changes in property tax amounts. Many property owners will have to pay higher property tax from 2025, as the property tax value is generally higher than the previous standardised value. This particularly affects flats and houses in the territory of the (former) GDR.

Homeowners have the option of lodging an objection against the property tax assessment notice and the property tax assessment notice if they believe that the values have not been calculated correctly. However, it is important to submit the objection in good time (one month).

The new property tax from 2025 is one of the apportionable costs. This is particularly interesting for owners of a rented property, as 100% of the property tax can be passed on to the tenant as part of the ancillary costs.

If you have any questions on this topic and your tax assessment notices, we are happy to help. Our colleagues will be happy to provide you with the relevant information.