Information about the new property tax
The Property Tax Reform Act stipulates that all property across Germany must be revalued as of 1 January 2022. In the course of this so-called primary appraisal, the property tax value on this date will be determined for the first time. From 2025, this will replace the standard value for property tax purposes. For property in the federal state of Berlin, the property tax value will be determined as previously, based on federal law.
As part of the reappraisal, all owners of property in Berlin must submit an electronic tax declaration to determine the property tax value – no matter whether they are using the property themselves or whether this is for rent. The property tax declaration must be submitted from 1 July 2022 and at the latest by 31 January 2023.
Determination of property taxThe former three-step process for determining property tax will still apply:
- Determine the property tax value
- Establish the property tax coefficient (property tax value x tax index)
- Calculate the property tax (property tax coefficient x tax factor)
For the time being, only the property tax value will be determined in Berlin. The new tax factor and any deviating tax coefficients will only be established once the value of the majority of properties in Berlin has been determined. As a result, notifications of the property tax coefficient and the property tax payable will only be issued in 2024. The new property tax will then be payable from 2025.