Real Estate Tax Act
| Basic data | |
|---|---|
| Title: | Real Estate Tax Act |
| Abbreviation: | GrStG |
| Type: | Federal law |
| Scope: | Federal Republic of Germany |
| Legal matter: | Tax law |
| References : | 611-7 |
| Issued on: | August 7, 1973 ( BGBl. I p. 965 ) |
| Entry into force on: | August 12, 1973 |
| Last change by: |
Art. 1 G of November 30, 2019 ( Federal Law Gazette I, p. 1875 ) |
| Effective date of the last change: |
January 1, 2025 (Art. 2 G of November 30, 2019) |
| GESTA : | D034 |
| Please note the note on the applicable legal version. | |
The land tax law in Germany authorizes the municipalities to levy land taxes on the developed, undeveloped and agricultural land in their area . In addition to trade tax , property tax is the most important tax that goes directly to the municipalities. It contributes significantly to the financing of the municipal budget. Property tax revenue in Germany in 2012 was around 12 billion euros.
The municipality's right to structure begins and ends with the determination of the assessment rate ( Section 25 GrStG ). Low assessment rates can favor the settlement of commercial and residential areas.
The municipality decides two rates of assessment, namely
- for property tax A for farms and forestry businesses and
- for property tax B for all other properties
The tax amount results from the multiplication of the tax assessment amount by the tax rate.
