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New property tax: Owners and tenants must take this into account

2022-05-22T06:28:44.087Z


New property tax: Owners and tenants must take this into account Created: 05/22/2022, 08:17 By: Lisa Mayerhofer A kind of second tax return - that's what German homeowners are looking for this summer because of the new property tax calculation. (symbol photo) © Jens Büttner/dpa The property tax will be reinstated. This means that millions of Germans will not only face an immense amount of bure


New property tax: Owners and tenants must take this into account

Created: 05/22/2022, 08:17

By: Lisa Mayerhofer

A kind of second tax return - that's what German homeowners are looking for this summer because of the new property tax calculation.

(symbol photo) © Jens Büttner/dpa

The property tax will be reinstated.

This means that millions of Germans will not only face an immense amount of bureaucracy this year, but also higher costs: an overview.

Berlin – A kind of second tax return: This will flourish for German homeowners this summer because of the new property tax calculation.

You have to report data such as years of construction, living space and land values ​​to the tax authorities.

An overview shows what is important for owners - and what tenants should also consider.

Property tax reform: what is it about?

The property tax is one of the most important sources of income for the municipalities.

The tax is paid by every land and real estate owner.

For apartment owners, it is usually a few hundred euros a year, for owners of larger apartment buildings it can also be four-digit amounts.

The reform of the property tax was decided more than two years ago after the Federal Constitutional Court had demanded a new regulation.

Until now, the tax authorities have calculated the value of a property on the basis of completely outdated data.

From 2025, a new method of calculation will apply.

But before that, almost 36 million properties in Germany have to be revalued.

The tax authorities are facing one of their biggest projects in post-war history.

And all owners in Germany will be involved – whether they want to or not.

Anyone who owns a house, apartment or property in Germany must submit a so-called declaration to the tax office to determine the property tax value.

Communities of heirs can submit a joint property tax return.

New property tax: What do owners have to consider now?

For the new calculation of the property tax, the tax offices need information about the property and the building from the owners.

The authorities need field numbers, official areas, district numbers - but also living areas and land values.

Depending on the federal state, sometimes more or less information may be required because the states use different calculation models.

Important:

According to previous plans, the property tax return can only be submitted between July 1st and October 31st of this year - with a few exceptions online via the Elster tax platform.

However, according to a report by the news portal Focus Online, it is also possible to submit an application to submit the declaration in paper form.

However, this process can take a few weeks, as can creating access to the Elster portal.

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Where can those affected get more information about the property tax return?

Municipalities can - but do not have to - inform their homeowners about the exact process.

Associations criticize that some do not want to do this until June.

For some of those affected, this can become a race against time: Obtaining data such as land register information, land value and living space is time-consuming - especially for seniors.

For example, those affected may first have to research standard land values ​​with independent expert committees.

In the case of living space, extensions and conversions must be measured by yourself if necessary.

By the way: The key date for all information is January 1, 2022, anything that has been changed after that does not have to be taken into account.

Owners should therefore start collecting the required data early enough.

However, the requirements vary depending on the federal state.

Exact information is available from your own property tax office.

In addition, tax consultants and owner representatives such as Haus und Grund can offer additional help.

What happens if the deadline is missed?

The Association of Private Builders advises not to miss the deadline.

Otherwise, the owners face fines or even official estimates, which could be disadvantageous for the homeowner.

How high will the new property tax be?

The tax offices determine the so-called property tax value from the submitted data.

However, this is only one component in the calculation of property tax.

The owners will probably not find out how much is due in the end until 2025, when the new property tax has to be paid.

Because the municipalities can also adjust their assessment rates.

These factors ultimately determine how much you have to pay in which municipality.

Although the municipalities are required to keep their income at roughly the same level as before, they are not obliged to do so.

Experts estimate that property taxes will tend to fall in rural areas and rise in conurbations.

How will the property tax reform affect tenants?

Tenants are also affected by the property tax reform – indirectly.

Landlords can pass the tax on to the tenants via the additional costs.

This means that rents can fall in structurally weak areas from 2025 or rise in metropolitan areas.

(lma/dpa)

Source: merkur

All news articles on 2022-05-22

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