Tax office: Berlin leads the way in property tax returns - Brandenburg lags behind

Tax office: Berlin leads the way in property tax returns - Brandenburg lags behind

According to a report by www.rbb24.de, millions of owners in Germany actually had to submit their property tax returns by the end of January 2023. A year later, tax offices – including in Brandenburg – are still chasing many declarations. Berlin, on the other hand, is almost through.

The Berlin tax offices expect a total of 868,000 property tax returns, of which only a fraction are still outstanding - around 4,000 returns. While in Brandenburg 150,000 property tax returns are still missing. Property tax is being reformed across Germany and the new property tax calculation will apply from 2025. The reform is based on a decision by the Federal Constitutional Court in 2018, according to which the previous assessment basis in Germany is unconstitutional. It is expected that around 36 million properties in Germany will have to be revalued.

Property tax is one of the most important sources of income for municipalities and owners can pass the property tax on to landlords through additional costs. However, the federal government is not planning to raise more money, and in Berlin owners can hope for a lower assessment rate and therefore fewer taxes. The Finance Senator announced this in mid-January.

As a financial professional, it is important to note that declining property tax returns could impact property reassessments and local government revenues. In addition, lower assessment rates in Berlin and potentially in other regions could lead to reduced revenue, which in turn could influence the financing of municipal projects and services. It is essential to take these factors into account when planning investments and financial projects.