German municipalities raise property tax

Real estate tax, or land tax (Grundsteuer) in Germany has always been quite loyal. The authorities tried not only to keep it at a stable level, but also to reduce it whenever possible. However, after the country was overtaken by a pandemic that hit the economic sector, the municipalities were forced to decide to raise the tax. On average, it increased by 3 euros and amounted to about 172 euros.

Tax amount by region

The tax amount is not the same throughout Germany. It differs in different regions:

• Bremen - 302 euros (the highest tax in the country);
• Hamburg - 260 euros;
• North Rhine-Westphalia - 212 euros;
• Bavaria - 139 euros;
• Brandenburg - 108 euros.

This difference between the amounts shows that the tax is largely influenced by the demand for real estate in a particular region, its economic level of development and other factors. The increase in the level of payments is due to the need to quickly replenish municipal budgets after the crisis.