It starts on July 1: property tax will be recalculated and landlords will need to file a tax return for the 2022 property tax reform.
Berlin – The new real estate tax 2022 is approaching, and owners in Germany who own houses, land or building space will have to cooperate with the tax authorities in the coming months. Because from 2025, the tax will be collected according to the new rule. The Constitutional Court in Karlsruhe in 2018 overturned the old basis of calculation and initiated a real estate tax reform. In total, nearly 36 million properties need to be overestimated – a difficult task that sometimes requires the homeowner to do research.
A new property tax will be due from 2025 – landlords need to note a few things in their finding statement
Consumer ombudsmen and experts warned a few months ago of the gigantic task that homeowners will have to face in the coming weeks: they will have to collect numerous paperwork in order to convert the 2022 property tax. Depending on the federal state, the scope varies greatly: states can deviate from the federal model in the calculation and use their own property tax reform model. kreiszeitung.de has compiled an overview of all property tax models.
However, a deadline has been set for the property tax: Landlords must submit an additional tax return to the authorities by October 31. Sometimes there is a rush as not all data for a 2022 property tax reassessment is easy to obtain and some research is required. But why is there a new property tax reform now? In 2018, the Federal Constitutional Court ruled that the original property tax was unconstitutional. Because the real estate tax was based on outdated unit values, some of which date back to the 1930s.
Real Estate Tax Reform 2022: Tax return must be submitted to Elster
Therefore, in 2019, a decision was made to reform the property tax. Anyone who owns property in Germany must now submit a separate tax return. The new property tax states that in most cases these must be filed via the Elster portal. Some countries even stipulate that the property tax return must only be filed through “Mein Elster”. For this purpose, the relevant 2022 Real Estate Tax Digital Forms will be made available.
Submit your property tax return without Elster: “Property Tax Refund for Private Property” allows
As of July 4, the website will be available to Länder using the federal model for property tax reform. Owing to “Real Estate Tax Return for Private Property”, landlords in Germany can fill out Real Estate Tax 2022 forms without Elster. However, you need to register online and use an activation code.
Property Tax 2022: By what deadlines should I submit my property tax return
What data is required on a tax return for property tax varies depending on the country models. If landowners file their second tax return through Elster, details such as plot number, year of construction, living area and standard land value are due. Depending on the federal state, more or less information may be required. For example, in Bavaria, only the area of land and buildings as well as use are important. Other data, such as property value, location, and age are irrelevant. Bavaria is currently the only federal state that also allows the submission of paper-based property tax returns. Appropriate property tax forms are available at individual tax offices.
However, owners in Germany are unlikely to find out how high the new property tax will be in 2022 to 2025. This is because the converted property tax is only one component of the calculation – even after property tax reform. Municipalities have the option to adjust their billing rates and thus determine how much homeowners will have to pay for property tax from 2025.
New Property Tax 2022: Tax Return Forms – These details must be submitted
As the deadline for submitting tax returns for the new real estate tax starts in July, some landlords are already preparing a so-called estimate declaration. I like the side grundsteuer.de measures, forms and instructions for completing the declaration to determine the value of real estate tax were published as early as December 1, 2021. Under the reference number BStBl. I 2021, 2391 ff. you can see them in the Federal Tax Journal. From July, real estate tax forms should also be available through Elster. However, as some Länder are deviating from the federal model, be careful: the different Länder models require specific 2022 property tax documents.
These documents are required for an Elster property tax return
Elster user account
information from the land and mortgage register
Detailed information depending on the country model
But what exactly is real estate tax? Property tax is a tax levied on real estate in Germany. In addition to built-up land, this also includes agricultural or forestry land. Property tax is paid to the commune once a year. Due to the real estate tax reform in 2022, the amount of taxes will change. For apartment owners, it is usually several hundred euros a year, for owners of larger apartment buildings, it can also be four-digit amounts. Income is an important source of income for municipalities and is used, inter alia, to finance schools and nurseries.
Property tax declaration: The reform requires the cooperation of the owners
Anyone who needs to file a 2022 Property Tax Return is sometimes wondering where to find some of the details. For example, the standard land value must be determined from 1 January 2022 in all Länder that use the federal model. There is also Baden-Württemberg. In Hesse and Lower Saxony. This value can be seen on the corresponding federal state websites. Since you have to submit a separate tax return for each property in Germany, the work for landlords in the coming months can become enormous.
It is therefore important for homeowners who own several properties to know which tax office is ultimately responsible for the property tax settlement. The good news: even though there are several hurdles to the new property tax collection, the answer to the liability question is easy: the tax office in whose district the property is located. However, the property tax declaration is mandatory for almost all landlords. However, there are exceptions for charity associations, for example