Is there a threat of a new burden equalization for property owners?

Is there a threat of a new burden equalization for property owners?

The so-called burden equalization, an old law, is causing unrest among many property owners. Already after the Second World War, property owners had to pay for war victims and damage. The Burden Equalization Act was introduced to ensure a fair distribution of financial losses caused by war and its consequences. At that time, people with significant assets and real estate had to pay 50 percent of the value of their property to the state in installments.

Although the post-war burden equalization has been completed, the law still exists. In 2019 there was an amendment to the burden equalization law, which only provided for minor adjustments. The assets of private individuals remain untouched and there are no concrete plans for a new burden equalization regulation.

It is emphasized that the state cannot simply take away property, including real estate, from citizens. The right to property is protected by the Basic Law. Only under strict conditions, such as the public good and appropriate compensation, can the state resort to expropriation, for example for urgently needed infrastructure projects such as the construction of roads. On the other hand, foreclosures on properties can occur when taxes or social security contributions are unpaid, which would put owners at risk of their home. However, it should be emphasized that the state is also bound by legal requirements and the possible expropriation or compulsory enforcement must be based on a constitutional procedure.