15 March 2022

2022 land tax reform
– everything you need to know

Following the adoption of a land tax reform by the Bundestag and Bundesrat in 2019, some 35 million properties and land and forestry businesses in Germany have to be revalued. The Federal Constitutional Court is demanding this reform, because the value of land and buildings, which until now were calculated by the tax offices, was based on obsolete figures. Below, we have compiled information about exactly what that means for you:

Procedure for the 2022 land tax reform

For every property and every land and forestry business, the owners must submit a property declaration for income tax purposes (Feststellungserklärung) to the tax authorities in electronic form. You will be asked to supply this by the tax authorities in 2022. Many federal states will probably do this in the form of a general ruling.
The revaluation will be based on the values as of 1 January 2022. As the tax authorities will take several years to revalue all the properties, the new values will only be used to calculate land tax from 2025.

Implementation in individual federal states

An escape clause allows the federal states to adopt and apply their own regional solutions instead of federal law. The location of the property is the principal factor in deciding which procedure is applied.

The state of Hesse diverges from the federal model and bases its calculations on surface area (the so-called Flächen-Faktor-Verfahren). As the owner of a property in the state of Hesse for either private or business use, you are directly affected and legally bound to take part in the revaluation procedure.

How can Unigarant help?

Unigarant will be happy to help you with the revaluation procedure. We’ve already drawn up a checklist for the state of Hesse with all the relevant information. We recommend downloading it now:

Please compile all the required documents now and send them to us in plenty of time. We will be making an online questionnaire available on our website shortly. You can simply send us the relevant information via this form.

If your property is in a different federal state, we will of course be happy to provide you with the corresponding checklist. Just talk with our Unigarant team.

We fill in all the documents, deal with the tax authorities and check the tax assessment notice. Please note that we cannot handle valuations of property used for land and forestry business.

What is the deadline for this declaration?

You cannot submit your tax return before 1 July 2022, firstly because the tax return forms have not yet been released by the tax authorities and, secondly, electronic transmission to the tax authorities will not be possible before that date. Nevertheless, we recommend getting ready in plenty of time.

We look forward to being able to provide comprehensive support for you on this.

© 2022 Unigarant GmbH tax consulting company

© 2022 Unigarant GmbH
tax consulting company