Calculation examples for property tax in Bavaria
Example 1: Semidetached house in Munich
The Weber family lives in a semi-detached house in Munich with 500m2 of land and a living area of 150m2. The following calculation results:
Step 1: Determination of the equivalent amount
For the land plot: 500m2 x 0,04 € / sqm² = 20,00 €
For the building: 150m2 x 0,5 €/m2= 75,00 €
Step 2: Determination of the Property tax assessment amount
For the land: € 20 x 100 % = € 20.00
For the building: € 75 x 70 % = € 52.50
In total, the property tax assessment amount is € 72.50
Step 3: Determination of the Property tax
The current assessment rate for property tax in Munich is 535%. After rounding down to full cents, the annual property tax is therefore: € 72.50 x 535 % = € 387.87.
Example 2: Condominium in Munich
The Sedlmayer family lives in a condominium in Munich. The property area of the apartment building is 1,300m2, the co-ownership share is 110/1000 and the living area is 110m2. The following calculation results:
Step 1: Determination of the equivalent amount
The basic share is: 1,300m2 x 110/1000 = 143m2. This results in the following equivalent amounts:
For the land: 143m2x 0,04 € /m² = 5,72 €
For the building: 110m2 x 0,5 €/m2= 55,00 €
Step 2: Determination of the Property tax assessment amount
For the land: € 5.72 x 100 % = € 5.72
For the building: € 55 x 70 % = € 38.50
In total, the property tax assessment amount is € 44.22.
Step 3: Determining the property tax
The current assessment rate for property tax in Munich is 535%. After rounding down to full cents, this gives the annual property tax: €44.22 x 535% = €236.57.
How high will the property tax payable be from 2025?
Compared to the previous property tax burden, some owners will experience a positive surprise and will have to pay less property tax, but some owners will also pay significantly more. Generally speaking, a large living space after the property tax reform will have a tax-increasing effect compared to the previous property tax burden.
The assessment rates, which are an essential component of property tax, will continue to be set individually by the municipalities. On the DIHK website you will find an overview of the current assessment rates of the federal states. You can also use the property tax calculator from Haus + Grund München to obtain your estimated property tax burden after the new calculation method comes into force.
Which data you must report to the tax office
As described, the effort for you as a property owner in Bavaria is far less than in most federal states. As the owner of a plot of land or property in Bavaria, the tax office requires you to submit the following data as part of the property tax return:
Plot area and parcel number
You can find the plot area and the parcel number in the land register extract. In the case of condominiums, you can determine the proportionate plot area by multiplying your co-ownership shares according to the land register extract by the total plot area. For example: Your co-ownership shares are 50/1000 and the total plot area is 1000m2. Your proportionate plot area is therefore: 50/1000 x 1000m2 = 50m2.
Area of the building
For residential use, the area of the building corresponds to the living space in accordance with the Living Space Ordinance. This includes all areas within the apartment. Balconies, terraces and conservatories are also counted as living space from a quarter to a maximum of half. Cellars, storage rooms and boiler rooms do not generally count as living space. The information on living space can usually be found in the living space calculation enclosed with the building application. In the case of condominiums, the living space is sometimes also noted in the declaration of division.
Why you as an owner need to take action now
Although the laws of the 2022 property tax reform will not apply until 2025, the tax authorities are already demanding new calculation bases as of January 1, 2022. For you as a property owner, this means that you will have to submit a property tax return with the relevant data in the period from July 1, 2022 to January 31, 2023. If you own a property in Bavaria, you may have already received a request to submit a property tax return from the Bavarian State Tax Office. But beware: Not all tax offices always send a letter directly to the owners asking them to submit the "Declaration for the determination of property tax values" . In any case, you must take action yourself and can also complete the relevant forms electronically via the Elster tax portal. Alternatively, you can submit the property tax return via your tax advisor.
Extension of the submission deadline in Bavaria
The Free State of Bavaria has extended the deadline for submitting property tax returns to April 30, 2023.
Conclusion
With the 2022 property tax reform, all land and buildings in Germany will have to be reassessed, as the outdated previous assessment basis leads to unequal treatment of land and property owners. However, the individual federal states can individually design the calculation method defined by the new federal model due to the state opening clause. For Bavaria, this means that instead of the value-based calculation method defined in the federal model, the far simpler area model serves as the basis for calculating the new property tax. The area model uses data based exclusively on the area of the property and the building.
Please note that you as the owner are obliged to submit a property tax return by 31.10.2022.