Germany Prepares for 2025 Property Tax Reform as Local Adjustments Vary

The nationwide property tax overhaul aims for fairness, but uneven implementation and shifting tax rates spark concerns.

Germany's property tax reform, effective January 2025, introduces new valuation methods to address outdated assessments from 1935 and 1964.
Communities are adjusting local tax rates (Hebesätze) to maintain revenue neutrality, though impacts vary widely between regions and property types.
Several municipalities, such as those in Mecklenburg-Vorpommern and North Rhine-Westphalia, have announced differentiated rates for residential and commercial properties to ease burdens on homeowners.
In Berlin, 150,000 property owners still await tax notifications, with delays prompting calls from advocacy groups to withhold payments until official updates are received.
Critics highlight inconsistencies in implementation and potential financial strain for some property owners, with debates ongoing about fairness and accuracy in the reform's rollout.