Paying property tax for land
Full text
Property tax is a local authority tax levied on property situated within the local authority’s area.
If you own a property, you are liable to pay property tax, known as ‘Grundsteuer B’. You will receive a property tax assessment notice from the local authority.
Property tax is assessed in a three-stage process. In the former East German states, the basis for the property tax notice is the standard value determined by the tax office in accordance with the Valuation Act, based on the value ratios of 1964; in the former West German states, it is the standard value determined by the tax office in accordance with the Valuation Act, based on the value ratios of 1935. These values, in turn, form the basis for the property tax assessment base, which is also calculated by the tax office and set by notice.
The tax assessment base, multiplied by the tax rate, then gives the amount of property tax payable.
In the new federal states, moreover, rental properties and detached houses for which no unit value was available on 1 January 1991 – and for which no such value could be determined – are to be taxed on the basis of a substitute assessment basis. The annual amount of property tax is calculated here on the basis of the living or usable area. This involves a tax declaration procedure with the local authority.
The local authority sets the tax assessment rate by by-law.
Changes to the legal or factual circumstances relating to the property only take effect for property tax purposes in the following year. For example, if you sell your property, the new owner will only be liable for property tax from the following year onwards. Similarly, if you develop your previously undeveloped plot of land, you will only have to pay the increased property tax from the following year.
Under certain conditions, you may be exempt from property tax. This is the case, for example, if you are a charitable organisation and the property is used exclusively and directly for charitable purposes. However, an exemption is generally not available if the property is used for agricultural, forestry or residential purposes. You can apply for an exemption from property tax at the tax office.
In special cases, it is possible to have the property tax waived. For example, if you own property whose preservation is in the public interest due to its significance for art, history, science or nature conservation, you may be able to apply to the local authority for a waiver of the tax if the income generated is generally less than the annual costs.Basis for action(s)
Required documents
None,
The basis for the assessment and collection of tax is established during the valuation carried out by the relevant tax office. The documents required for the valuation must be submitted as part of the valuation and property tax assessment procedure conducted by that office.
Should you wish to apply for a tax remission, please enquire with your local authority as to the correct procedure and which supporting documents must be enclosed.Prerequisites
The tax liability arises when you are the owner of a property.
Costs (fees, expenses, etc.)
- none,
- This is a tax payment; further costs only arise in the event of late payment or non-payment (e.g. late payment surcharges).
Please contact your local authority for details of permitted payment methods.
Procedure
Once the tax office has issued a notice of standard value and property tax assessment, the local authority will, on this basis, issue you with a notice setting out the amount of property tax B. This notice may cover one calendar year, or, where applicable, several calendar years.
If the same tax is to be paid in the future as in the previous year, the local authority may also set the property tax by public notice.
Property tax must be paid by the specified due dates.Deadlines
A quarter of the annual amount of property tax is due on 15 February, 15 May, 15 August and 15 November.
The local authorities may decide that small amounts are due in one annual instalment or in half annual instalments.
In addition, the tax can also be paid in one annual amount on 1 July at your request.Forms
Forms: generally none; if necessary, direct debit authorisation for the municipality to participate in the direct debit procedure
Online procedure possible: Please ask your municipality about this.
Written form required: yes
Personal appearance required: noNotes (special features)
If you own a property, you must pay property tax B on it.
Responsible office
Municipality responsible and authorised to collect