Business So expensive are house and property

So expensive are house and property


Dhe dream of having your own four walls is widespread. But in Germany only about every second person lives in a house that belongs to him. Because real estate prices have risen, especially in large cities, housing issues have become a factor in election campaigns. The SPD wants to tax the increase in value of land more heavily and therefore brings an increase in land value tax into play.

Jan Hauser

Jan Hauser

Editor in the economy of the Frankfurter Allgemeine Sonntagszeitung.

The SPD co-chair, Norbert Walter-Borjans, told the F.A.Z. that municipalities can use this tax to participate in enormous random profits that arise when they "make construction land out of commercial areas, agricultural land or anything with a rededication". At the same time, he talks about making living cheaper – "not only for tenants, but also for people who live in their own four walls". So far, many taxes and duties have made housing more expensive, as this overview shows.

What tax does the property buyer pay?

First, real estate transfer tax is due. However, this does not go to the municipality, whose income Walter-Borjans wants to increase, but to the federal state, which decides the amount of the tax. In Bavaria and Saxony it is 3.5 percent of the purchase price, elsewhere more. In North Rhine-Westphalia, Schleswig-Holstein, Brandenburg, Thuringia and the Saarland, the tax rate is 6.5 percent. The income from this almost tripled from around 5 billion euros in 2010 to around 14 billion euros in 2018. The state also receives money if the seller has owned the property for less than ten years and has not lived there to a certain extent: the seller then has to pay income tax on the profit from the real estate business.

Are there any more costs?

In addition to the real estate transfer tax, notary fees of around one percent of the purchase price are payable. About 0.5 percent is due for entry in the land registry. A broker receives up to 7.15 percent of the purchase price for the brokerage of a property, depending on the state. In most federal states, buyers and sellers share the broker bill. Taxes and ancillary costs of buying a house increase up to 15 percent of the purchase price.

. (tagsToTranslate) Norbert Walter-Borjans (t) SPD (t) F.A.Z. (t) property purchase (t) land ownership (t) North Rhine-Westphalia (t) Bavaria


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