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4d ago

Germany’s Property Tax Reform Triggers Widespread Increases for Homeowners

A new analysis reveals that 79% of property owners face higher or unchanged tax bills, challenging the reform’s promise of revenue neutrality.

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Ein Bauarbeiter mit einem Presslufthammer. Nach der Grundsteuerreform wird Bauen und Wohnen teurer.
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Olaf Scholz hat sein Grundsteuer-Versprechen einer Studie zufolge gebrochen.

Overview

  • A Haus & Grund study of 1,999 tax assessments found that 79% of property owners saw their tax burden rise or stay constant after the reform.
  • The average annual property tax increased from €522 in 2024 to €830 in 2025, with significant disparities by property type.
  • Tax burdens rose by 40% for condominiums, 119% for single-family homes, and 111% for multi-family buildings, according to the analysis.
  • Municipalities largely raised local tax multipliers, a key factor behind the increases, undermining the intended revenue neutrality of the reform.
  • While the federal government insists on maintaining neutrality, Haus & Grund’s president calls for policy corrections to address the broken promises.