Property Tax Reform in Bavaria

Do you own land or are you the owner of houses or apartments?

If yes, we’d ask you, to already start taking care of the reassessment of your property. While the new property tax will only take effect starting January 1st 2025, property owners are already obliged to hand in the declaration to determine the property tax value in the time period of 01.07.2022 – 31.10.2022.

Why did the Property Tax need a reform?

In 2018, the Federal Constitution Court decided, that the regulations according to which the property tax is currently being calculated, go against the principle of equality and are therefore in violation of article 3 of the constitution.

The basis of how the property tax is currently being calculated was last adjusted in 1964 in the old federal states and in 1935 in the new federal states.

The aim of this new law is not to increase the property tax. Instead, the aim is to charge the same amount of property tax for properties in the same location and the same size. Therefore, it would be more accurate to talk about a redistribution of the load.

The first deadline for the new evaluation is the 01.01.2022. The current property tax will not yet be adjusted in the years 2023 and 2024.

The property tax notice will continue to be issued by your town/municipality. Starting in 2025, you will be issued property tax notices on the basis of the newly calculated values, by your municipality.

Whether or not the new amount of property tax that you have to pay will be higher or lower, is unknown as of now. This mostly depends on whether or not your town/municipality will raise the assessment rate.

Property Tax – The Bavarian Model

The free state of Bavaria has taken opportunity of the flexibility clause and decided to adapt a model that is mainly about the surface area.

This means that for the calculation of the property tax in accordance to the model that mainly factors in the surface area, three factors are important.

  • The surface area of the land
  • The surface area of the building and
  • What the building is being used for

This is how the property tax will be calculated:

Who needs to turn in the tax declaration?

The individual that is required to pay the property tax, is also required to hand in the tax declaration. Usually this is the owner of the property. A separate tax declaration is required to be handed in for every economic entity. A tax declaration must also be turned in for (partially) tax-exempt properties.

If the property tax is transferred onto the tenant via the service charge statement, the landlord, as the actual owner of the property, is still required to hand in the tax declaration.

Therefore, the tax declaration needs to be turned in by the following people/corporations/collectives:

  • The owner of the land
  • The owner of the forestry business or farming business
  • For a property with a lease hold: the person holding the heritable building rights with the support of the leaseholder, meaning the owner of the property
  • For buildings on not self-owned land: for the land the owner of the land and for the building the owner of the building

If the land or the foresty/farming business belongs to several people/corporations/collectives, then they have to hand in a tax declaration collectively.

To answer the question of who needs to hand in the tax declaration, it is only relevant to look at who had ownership from 01.01.2022 onwards.

It will be possible to hand in the tax declaration starting from the 01.07.2022. The deadline to hand in the tax declaration is the 31.10.2022!

If we may assist you in the creation of the tax declaration, please send us a short E-Mail at kanzlei@jantschke-steuerberater.de or call us under 09132 78360 as soon as possible.

We will contact you as soon as we know how much we assistance we may provide to you. Then you will be invited by us to comfortably collect all your data in our program. There you will also have the choice to upload documents so we have access to them (for example the excerpt from the land register or the property tax notice.

If the necessary property-related data cannot (or can no longer) be found, a cadastral map can be requested from the surveying office and an excerpt from the land register can be requested from the responsible district court.

Do you require assistance because you do not want to work digitally? In this case please feel free to approach us as well.

Our Fee Offer for you:

All the data is being collected by you via a digital link:

€ 297,00* plus 19 % VAT per property or rather by expenditure of time for multiple properties**

For incomplete or analog property data the price is

€497,00* plus 19% VAT per property or rather by expenditure of time for multiple properties**

*plus € 47,00 plus 19 % VAT for the first checking of assessment

** the hourly rate is 97,00 €

What assessments are you going to receive?

You will be sent three different assessments (only in the case of land):

The calculations in each assessment is based on the calculation of the previous calculation. The assessment of the property tax equivalent amounts and the assessment of the property tax base amount only contain calculation bases.

The tax office will inform the municipality of the real estate tax amount as the base for calculating the property tax independently. You are not required to do anything here.

You will receive two letters.

The first two assessments (assessment for the property tax equivalent amount and assessment for the property tax measurement amount) will be sent by the tax office as soon as your property tax return was reviewed (therefore in 2022 or 2023). You will receive these two assessments together in one envelope. The assessments will be sent to you by the tax office that is responsible for the property or forestry/farming business. The third assessment (property tax notice) will be sent to you by the local municipality as soon as they have set their tax rate (i.e. in 2024). Only in the third notification, you will be notified how much real estate tax you will have to pay from 2025 onwards.

Overview of the required documents: