Property tax is a municipal tax levied on real property located in the municipality's territory.
If you are the owner or, in the new federal states, the user of a piece of agricultural or forestry land, you have to pay property tax - the so-called property tax A. You will receive a property tax assessment notice from the municipality.
The property tax is assessed in a three-stage procedure. In the old federal states, the basis for the land tax assessment notice is the assessed value determined by the tax office in accordance with the Valuation Act based on the 1964 value ratios, and in the new federal states it is the substitute economic value determined in accordance with the Valuation Act based on the 1964 value ratios. These values in turn form the basis for the land tax assessment amount.
The tax assessment amount multiplied by the assessment rate forms the tax to be paid. The assessment rate is set by the municipality by statute. The assessment rate for agricultural and forestry assets may differ from that for real property.
Under certain conditions, you can apply to the municipality for a partial remission of the tax if the normal gross income is reduced by more than fifty percent and other conditions are met.
Changes in the legal or factual circumstances of the real estate only have an effect on the real estate tax in the following year. For example, if you sell your property, the new owner will only be liable for property tax from the following year.