Property taxes in Germany: Less Scary Than You Think
July 16, 2020
How many obligatory taxes there are in Germany? Do their sizes depend on any factors? And if so, on which exactly? We will give you the answer to all these nessesary questions.
Land Tax
Property owners in Germany are required to pay a land tax, which is regulated by the real estate tax Act (Grundsteuergesetz, GrStG) of December 1, 1936.
The amount of this tax is calculated by the financial inspectorate depending on the estimated value of the land plot. The owner of the property receives a calculation indicating its size and payment terms.
Land tax is paid quarterly. The amount depends on the size of the plot as well as on the location: the better location is, the higher estimated value of the land plot. Consequently, the amount of land tax increases.
If location isn’t a prestigious one the land plot size is average, the land tax for one-bedroom or two-bedroom apartments is approximately €70-150 per year.
How to Pay the Land Tax
There are two ways to pay land tax. The first one is to come to the local tax office of the city where your property is located. You can find the address and contacts of such agencies here. Or you can transfer money via bank to the tax service account.
Also, you can register on a special portal Elster and pay taxes online.
This is a mandatory tax to pay. Without it you will not become a new owner. The amount depends on the region. Both the buyer and the seller are responsible for the payment. Usually, the sale contract specifies that associated costs for the execution of the purchase and sale transaction are borne by the buyer.
The tax rate for the purchase of real estate (Grunderwerbsteuer) depends on the Federal land where the property is located.
Federal Land
Tax Rate
Berlin
6%
Brandenburg
6,5%
Baden-Württemberg
5%
Bremen
5%
Hamburg
4.5%
Lower Saxony
5%
North Rhine-Westphalia
6.5%
Rhineland-Palatinate
5%
Saarland
6.5%
Saxony Anhalt
5%
Schleswig-Holstein
6.5%
Thuringia
6.5%
Bavaria
3.5%
Hesse
6%
Mecklenburg-Pomerania
5%
Saxony
3.5%
Until the property purchase tax is paid, the land registry will not make a final re-registration of the buyer's ownership rights.
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clear
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Online ViewingRemote Transaction
Affordable accommodation in a small cozy German town in the west of Germany, 20 minutes from Dusseldorf.
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