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German Property Tax Reform Sparks Concerns Over Rising Costs for Homeowners

The 2025 property tax overhaul is projected to increase financial burdens on residential property owners, with calls for adjustments to mitigate impacts.

  • The 2025 property tax reform in Germany introduces recalculated property values, leading to higher taxes for many residential property owners.
  • The Deutsche Städtetag has criticized the reform for disproportionately impacting homeowners compared to commercial property owners.
  • Only Berlin, Saxony, and Saarland have adjusted their tax calculation metrics to address the imbalance, leaving other states unable to make changes before 2025.
  • Municipalities still have until June 30, 2025, to set new tax rates, offering some potential relief where tax burdens are deemed excessive.
  • The reform stems from a 2018 Federal Constitutional Court ruling that invalidated outdated property value assessments used in the previous tax system.
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