Property Tax (Grundsteuer)

German property tax (Grundsteuer) is based on the property tax law (Grundsteuergesetz, GrStG). The real property tax burden is calculated by multiplying
the assessed value of the real property;

  • The real property tax rate;
  • and The municipal Multiplier.

The assessed real property value is determined by the tax authorities according to the German Assessment Code (Bewertungsgesetz). The German Assessment Code refers to historical property values that are usually significantly lower than current market value. The real property tax rate depends on the type of real property. The tax rate is e.g. 2.6‰ (0.26 percent) for property used for (semi-) detached houses with a value of up to EUR 60,000 and 3.5 ‰ (0.35 percent) for all remaining types of real property (including commercially used real property). The municipal multiplier applied to real property tax is stipulated by each municipality. The property tax is paid quarterly to the local tax office on 15 February, 15 May, 15 August and 15 November each year. Smaller amounts that do not exceed €15 must be paid in full on 15 August. Biannual payments may be made on 15 February and 15 August if they do not exceed €30.

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