- Professional News
- 23 October 2013
Tax increase on real estate purchases in Berlin
Buying real estate in Berlin may become more expensive in the near future. A new bill proposes a tax increase from 5% to 6% from 1 January 2014.
In Germany, the transfer of real estate is subject to tax. The tax rate varies from one federal state to another with Berlin’s tax rate amounting to 5%.
Now Berlin’s politicians want to raise this tax (“Grundwerbsteuer”). The Senate of Berlin has drafted a bill, which will result in a tax increase from 5% to 6% from 1 January 2014 if the bill is adopted.
The reason for the tax increase is Berlin’s drop in revenue because the number of taxpayers has fallen.
Profitable to sell in 2013
If you are contemplating buying or selling real estate in Berlin, it could be advisable to do so before 2014.
Moreover, flat owners in Berlin should bear in mind that a pending bill may prohibit the use of Berlin flats as holiday rentals. Read more about the bill.
If you have any questions about the rules on the transfer of real property in Germany, we will be happy to advise you – for example by assisting in negotiating the contract of sale.