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2w ago

Germany’s New Property Tax System Triggers Widespread Homeowner Backlash

Two-thirds of private property owners report higher taxes under the reformed Grundsteuer, with significant regional disparities fueling perceptions of unfairness.

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Overview

  • A survey of 46,000 tax declarations reveals that 66% of private property owners now face increased tax bills, while 26.7% pay less and 6.8% see no change.
  • Nearly 48% of respondents perceive the new system as unjust, highlighting growing dissatisfaction among homeowners.
  • The reform, implemented in January 2025, was mandated by a 2018 Constitutional Court ruling to replace outdated valuation methods with current property and land values.
  • Regional disparities are stark, with Berlin seeing an average tax increase of 116.8%, compared to 54.7% in Schleswig-Holstein, due to varying local multipliers (Hebesätze).
  • Municipalities continue to adjust local tax rates, sparking debates over fairness and raising the potential for legal challenges from property owners.