Hamburg: Property tax reform 2025 - What does this mean for owners and tenants?

Hamburg: Property tax reform 2025 - What does this mean for owners and tenants?

According to a report by www.abendblatt.de, the Hamburg Senate plans to decide on the assessment rate for the new property tax by the middle of the year. This will have an impact on the costs that the owners of over 420,000 properties in the Hanseatic city will face from the beginning of 2025. Since landlords are allowed to pass the tax on to their tenants, all tenants are also indirectly affected.

The new property tax is expected to lead to changes in the real estate market in Hamburg. If costs rise for owners, these increases could also affect rental prices. Tenants may then have to expect rising housing costs.

The uncertainty surrounding the assessment rate could also lead to delays in planned property purchases or sales, as potential buyers or sellers may wait to assess the exact impact of the new tax rates.

Furthermore, long-term rented properties could become less attractive if the real estate tax allocation leads to an increased burden for landlords. This could have long-term effects on investments in rented properties in Hamburg.

Overall, the new property tax decision is an important factor that could potentially have a major impact on the real estate market in Hamburg. It remains to be seen how the specific tax rates will develop and what impact this will have on the industry.