Overview
- The rate was lowered from 6.5% to 5% at the start of 2024, but property and land transactions continued to decline rather than rebound.
- The Finance Ministry reports about €27 million in forgone revenue for 2024 and roughly €35 million through the end of October 2025.
- Recorded transactions fell from about 49,300 in 2023 to 45,600 in 2024, with around 35,800 logged through the third quarter of 2025, pointing to a full-year total similar to 2024.
- Officials caution that slower processing means the lower rate showed up gradually in 2024 receipts and that broader economic factors, including mortgage rates, influence buying decisions.
- The CDU advanced the cut in 2023 and it passed with AfD and FDP votes, drawing national scrutiny, while the current coalition references potential federal avenues for more flexibility on the tax.