Berlin secures additional €2 million in property tax revenue
Germany's Property Tax Revenues in the First Half of 2025: A Mixed Picture
Property tax revenues in various German cities have shown a mixed picture for the first half of 2025, with some cities experiencing growth while others face shortfalls.
In Frankfurt/Main, one of Germany's most expensive cities, property tax revenue increased by €2 million compared to the same period in 2024, amounting to €115 million. However, Hamburg, another major city, expects a more substantial increase, with property tax revenue potentially reaching between 503 and 510 million euros in 2025, representing an increase of 3 to 10 million euros compared to 2024.
On the other hand, cities like Essen, Stuttgart, Hanover, Halle, and Frankfurt (Oder) have seen decreases in property tax revenue. Essen anticipates a significant shortfall of around -7 to -8 million euros by the end of the year due to corrections in the first two quarters of 2025. Stuttgart collected approximately €162.6 million in property taxes A and B in the current calendar year, a decrease of €2.4 million compared to the 2024 fiscal year. Hanover, Halle, and Frankfurt (Oder) also reported decreases in property tax revenue for the first half of 2025.
Property tax affects everyone who owns a property, a house, an apartment, or lives in a rental property in Germany. The tax, known as real property tax (Grundsteuer), is imposed quarterly by municipalities, with varying rates depending on local decisions. It was declared unconstitutional in 2018 because it is based on outdated property valuations.
Real estate transfer tax (Grunderwerbsteuer) rates vary by state and are typically between 3.5% and 6.5%. Most states increased rates since 2011, with North Rhine-Westphalia, Saarland, and Schleswig-Holstein having the highest rates (6.5%). Transfer tax revenues have historically made up roughly 2.2% of total German tax revenues and about 4.5% of federal states’ tax revenues as of 2020.
However, no detailed nationwide or state-level data for the first half of 2025 property tax revenue changes is accessible at this time. For up-to-date official statistics, German federal or state finance departments’ reports or tax authorities’ publications would be the most authoritative, but they are not currently included in the search results.
It's important to note that the new property tax has been in effect for half a year in Germany, but detailed nationwide or state-level data for the first half of 2025 property tax revenue changes is not yet available. As more data becomes available, it will provide a clearer picture of the impact of the new property tax on property tax revenues across Germany.
- In light of the new property tax in Germany, it remains unclear how this change will impact overall business and finance sectors, considering the varying results observed in property tax revenues for different cities in the first half of 2025.
- As some cities, like Frankfurt/Main, have reported increases in property tax revenue, while others, including Essen, have experienced decreases, it is essential to closely monitor the business and financial implications of this trend in the property market for Germany as a whole.
