The Grundsteuer, or property tax in English, is a tax levied on the ownership of land and buildings in Germany. This tax is an important source of revenue for municipalities and is calculated based on the value of the property.
What is “Grundsteuer”?
Grundsteuer is a municipal tax that property owners in Germany must pay. It applies to both residential and commercial properties, including land that is not developed. The tax is calculated based on the value of the property, which is determined by the local tax office. The amount of Grundsteuer a property owner must pay can vary significantly from one municipality to another, as each municipality sets its own tax rate, known as the “Hebesatz”[2][7][8][16].
More information about “Grundsteuer”
The Grundsteuer is undergoing significant reforms, with new regulations set to take effect from January 1, 2025. These reforms were initiated following a ruling by the Federal Constitutional Court, which found the previous method of property valuation to be outdated and unconstitutional. Under the new system, property values will be reassessed, and the tax will be calculated based on more current values. This is expected to lead to a fairer distribution of the tax burden among property owners[10][11][17][19].
Related to “Grundsteuer”
Here are some additional terms that are related to Grundsteuer:
- Hebesatz: The multiplier used by municipalities to calculate the Grundsteuer based on the assessed value of the property and the Grundsteuermesszahl. It varies significantly across different municipalities[2][7][8][16].
- Grundsteuermesszahl: A legally defined number used in the calculation of the Grundsteuer. It is applied to the assessed value of the property to determine the Grundsteuermessbetrag, which is then multiplied by the Hebesatz to calculate the tax due[2][7][8][16].
- Einheitswert: The assessed value of a property according to the old valuation rules, which will be replaced by the new property value (Grundsteuerwert) under the Grundsteuer reform[10][11][17][19].
The reform of the Grundsteuer represents a significant change in how property taxes are calculated in Germany, aiming to ensure a more equitable distribution of the tax burden based on current property values.