Delayed Rollout of Property Tax Reform Causes Confusion Across Germany

Many municipalities struggle to issue updated property tax notices, leaving property owners uncertain about their financial obligations under the new system.

The nationwide property tax reform, effective January 1, 2025, aims to address outdated valuation methods deemed unconstitutional by the Federal Constitutional Court in 2018.
Over half of Germany's largest cities, including Hamburg and Bonn, have yet to send out property tax notices, with some delays expected until March 2025.
The reform introduces new calculation models, with some states like Bavaria implementing a unique area-based system rather than the federal value-based model.
Property owners face uncertainty as the reform redistributes tax burdens, with some seeing increases and others decreases depending on property characteristics and local tax rates.
Municipalities are ramping up support systems, such as call centers and online portals, to address taxpayer concerns and ensure compliance with new payment deadlines.