Property tax (Grundsteuer)
Grundsteuer (property tax) is an annual tax that every landowner in Germany has to pay – whether the land is built on or not, owner-occupied or rented out.
Property tax reform 2025:
Property tax was completely recalculated (following a 2018 ruling by the Federal Constitutional Court). The old values were based on data from 1935 (East) and 1964 (West) – completely outdated.
How is it calculated?
• Property tax value (determined by the tax office) × base rate × the municipality's multiplier
• Multipliers vary greatly: from 250% (rural) to 900%+ (Munich, Frankfurt)
Typical amount: €200–800/year for a flat. €500–2,000/year for a detached house.
Tenants take note: landlords may pass property tax on to tenants as an operating cost – it appears in the service charge statement.
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