What is the assessment value (Einheitswert)?
The assessment value is a value for undeveloped and developed land that is determined on a certain key date in a legally regulated, standardised procedure and serves as the basis for assessment for taxes, fees and contributions.
The legal basis is the Valuation Act (Bewertungsgesetz). The tax office determines the tax base for undeveloped and developed land in a declaratory procedure.
The Valuation Act provides that the attainable annual rent, the structural equipment and the size of the living and usable space as well as the type of construction, the year of construction and the type of subsidy are to be examined within the framework of the capitalized earnings method. The land value is determined in this way, which then includes the land value, the building value and also the value of existing outdoor facilities.
If the taxable value has been officially established, the owner receives the certificate of assessment.
What is the assessment value (Einheitswert)?
How is the assessment value calculated?
Undeveloped land
If the property is undeveloped land, the valuation value is calculated as follows:
Assessment value = sqm of the plot x land value (as of 01.01.1964 or 01.01.1935)
Capitalized earnings method
One-family homes, semi-detached houses, rented residential properties, owner-occupied apartments, commercial and mixed-use properties are generally valued using the capitalized earnings method.
The annual rent (to 01.01.1964 or 01.01.1935), which a tenant would have to pay for the entire calendar year, is multiplied by a multiplier. Surcharges (increasing circumstances) and discounts (increasing circumstances) increase or decrease the tax base.
Whether the building (s)/apartments are (are) used, rented or provided free of charge is irrelevant for the determination of the annual rent and has no influence on it.
Asset value method
Single-family houses in the former eastern part of Berlin are always to be valued using the real value method.
If it is not possible to determine the annual rent for the 1964 assessment values because, for example, these are luxury houses (from the perspective of January 1,1964), the assessment value must be determined using the real value method.
In this procedure, the individual values of the soil, the buildings/s and the outdoor facilities are added together. In order to determine the value of buildings/, the converted room is multiplied by the average production costs (e. g. as of January 1,1964 or January 1,1935) with a deduction based on the building age (up to January 1,1964 or January 1,1935).
If no assessment value was determined for a rental property or a single-family house in the new federal states on 01.01.1991, the real estate tax is essentially based on a fixed amount per square metre of living space, which is adjusted to the assessment rate fixed for the respective calendar year (substitute assessment basis). Rented residential properties or single-family homes constructed after 01.01.1991 are to be valued according to the standard procedure.
The assessment values are to be calculated in DM, rounded down to a full hundred DM and then converted into euros.
How is the assessment value calculated?
What is the assessment rate?
In municipal tax law, the rate of assessment is the term for a factor that is multiplied by the tax base amount to determine the tax liability. In Germany, a rate of assessment is provided for in the case of trade tax (§ 16 GewStG) and real estate tax (§ 25 GrStG).
There are three sets of assessment rates:
- For property tax A (for farms and forestry)
- For property tax B (for most other properties)
- For trade tax (Gewerbesteuer)
The local council decides on the amount of the respective surcharge. The assessment rates are determined autonomously by the local authorities to determine the tax rates for agricultural and forestry operations (land tax A), other land plots (land tax B) or taxes payable as a trader (trade tax).
A higher rate of leverage means that the municipality receives more tax revenue, but is at risk of becoming less attractive for businesses (in the case of trade tax), farmers (land tax A) or building owners (land tax B) compared to other municipalities.
The rates of assessment for the land and trade tax are regularly laid down in the municipal budget statutes for a financial year (= calendar year) and can therefore be changed every year. They are referred to as "percentage rates", i. e. percentages. For example, if a rate of assessment is 350%, the tax base is multiplied by 3.5.
The amount of the tax base is determined by the fiscal authorities with binding effect for the local council representation.
What is the assessment rate?
How much is the real estate tax?
Property tax is a tax on the ownership of real estate and its development. The basis for the collection of the real estate tax is the Real Estate Tax Act, the legal basis for the valuation of real estate is the Valuation Act.
This real estate tax is a municipal tax and is fixed and collected by the tax office in whose district the real estate is located. The owner of the property is liable to tax.
The tax base is multiplied by the real estate tax index number and by the rate of assessment fixed by the municipality. As the rates of property tax levies are fixed by the cities, the amount of property tax varies regionally.
How much is the real estate tax?
How is the real estate tax calculated?
The property tax is determined in three stages:
- Determination of the assessment value (Einheitswerts, EW)
- Assessment value x basic tax rate = tax base amount
- Tax base amount x assessment rate = property tax
How is the real estate tax calculated?
What is the real estate tax assessment notice?
The property tax for the calendar year (annual amount of property tax) is determined by means of a written notice to the tax debtor or by public announcement in the Official Journal of Berlin, if he has to pay the same property tax as in the previous year and the method of payment has not changed (see the following section Maturity of advance payments).
The annual real estate tax amount is determined by multiplying the real estate tax measurement amount by the assessment rate.
What is the real estate tax assessment notice?
Can I be exempted from the tax?
Under certain conditions, exemption from property tax (Sections 3 and 4 of the German GrStG) may be granted. The narrow exemption regulations contain exemptions, in particular for the benefit of the public sector, churches and charitable bodies. As a rule, exemption is not possible if the property is used for agricultural, forestry or residential purposes.
Can I be exempted from the tax?
What is the property tax index number?
The property tax index number is entered as a share of the assessed value and is used to calculate the property tax index value. It depends on the type of property.
| Basic tax rate |
|---|
| Building type | Assessment value | Population | Old federal states | New federal states |
|---|
| | old buildings | new buildings |
|---|
| Family houses | for the first full or full EUR 15,338.76 of the unit value | up to 25,000 inhabitants | 0.26% | 1.00% | 0.80% |
| Family houses | > 25,000 and <1,000,000 inhabitants | 0.26% | 0.80% | 0.60% |
| Family houses | more than 1 million inhabitants | 0.26% | 0.60% | 0.50% |
| Family houses | for the part of the unit value which exceeds EUR 15,338.76 | up to 25,000 inhabitants | 0.26% | 1.00% | 0.80% |
| Family houses | > 25,000 and <1,000,000 inhabitants | 0.26% | 1.00% | 0.70% |
| Family houses | more than 1 million inhabitants | 0.26% | 1.00% | 0.60% |
| Two-family houses | | | 0.31% | 1.00% | 0.80% |
| Single-family dwelling-houses / dwelling-houses | | | 0.35% | 1.00% | 0.60% |
| other land | | | 0.35% | 1.00% | 1.00% |
| Agriculture and forestry, | | | 0.60% | 0.60% | 0.60% |
What is the property tax index number?
Who must pay property tax?
Property tax must be paid by the owner of the property registered in the land register. The property tax is considered part of the operating costs of a property and is included in the tax return together with the other deductible income-related costs if income is generated from renting and leasing the property.
If the property is rented or leased, the advance payment of property tax may also be passed on to the tenant or leaseholder via the additional costs.
Property tax is usually determined for an entire calendar year. As a rule, these are determined every three months on 15.02, 15.05, 15.08 and 15.11. of the year. If you want to pay the property tax in one payment, you can apply for this. The annual payment usually takes place on July 1st of each year.
Who must pay property tax?
When are the advance payments due?
Property tax is an annual tax and is due on 15 February, 15 May, 15 August and 15 November, each with 25 percent.
If the annual real estate tax amount is more than EUR 15 and less than EUR 30, this amount will be deducted from the property tax on 15 February and 15 August each due in half.
If the annual property tax amount is not more than 15 euros, this amount will be deducted on the day of the property tax 15 August due in full.
Contrary to the two first-mentioned due dates, the real estate tax may be paid on 1 July in an annual amount at the request of the tax debtor.
This application must be submitted no later than 30 September of the previous calendar year. The payment method applied for in this way remains valid for the following years, unless your change is requested by 30 September for the following year.
When are the advance payments due?
Can property tax also be waived?
An exemption or partial remission of the real estate tax for cultural property and green spaces in accordance with § 32 GrStG (e. g. in the case of listed buildings) or due to a significant reduction in earnings in accordance with § 33 GrStG (e. g. due to the insolvency of the tenant) may be possible if the prerequisites of the aforementioned regulations are fulfilled.
The decree or partial decree is granted only on application and must be submitted to the competent tax office by 31 March of the following year, for which the real estate tax has been fixed (period of decree); this is an exclusion period.
Can property tax also be waived?
