Are there ways to reduce property tax?
July 21, 2024 | 55,00 EUR | answered by Tina Ullmann
Dear tax advisor,
I am reaching out to you with a question regarding real estate taxation, as I have noticed that as the owner of a property, I have been paying increasingly higher property taxes in recent years and am looking for ways to reduce them.
The current situation is as follows: 10 years ago, I purchased a condominium in a popular area. Since then, the value of the property has significantly increased, which is reflected in the amount of property tax I am required to pay. In recent years, I have noticed that property tax constitutes a significant portion of my monthly fixed expenses.
I am concerned that property taxes will continue to rise in the future and am wondering if there are ways to reduce them. I have already tried to educate myself on potential cost-saving measures, but I lack the expertise to understand and apply the complex tax laws.
Therefore, my question to you is: Are there legal ways to reduce the property tax on my property? What tax relief or depreciation options are available to me as the owner? Are there specific measures I can take to lower the property tax burden?
I would greatly appreciate it if you could provide me with specific tips and recommendations on how to reduce the property tax on my property in the long term. Thank you in advance for your assistance.
Sincerely,
Lukas Schulz
Dear Mr. Schulz,
Thank you for your inquiry regarding property taxation and the search for ways to reduce the property tax on your property. It is understandable that rising property tax costs can be a burden, and therefore it is important to look for legal ways to reduce them.
First and foremost, it is important to understand that the amount of property tax in Germany depends on various factors, including the property's unit value, the municipality's tax rate, and possibly exemptions or tax relief.
One way to reduce property tax is to review the unit value of your property. If you believe it is set too high, you can request a review and potentially have it reassessed. Reviewing the tax rate in your municipality may also be useful, as it can vary from one municipality to another and therefore have an impact on the property tax amount.
Furthermore, there are various tax relief and depreciation options available to property owners. For example, energy-efficient modernization measures or the use of renewable energy sources can be tax-deductible. Costs for maintenance and modernization measures can also be claimed as tax deductions, reducing the property tax burden.
Additionally, you can check if your property qualifies for an exemption from property tax. This may be the case if the property is listed as a historic monument or used for charitable purposes.
Overall, it is advisable to consult a tax advisor or a specialist in tax law to receive individual advice and discuss concrete measures to reduce your property tax burden. A professional expert can help you explore and implement the optimal options for your property situation.
I hope this information is helpful to you and wish you success in reducing your property tax burden. If you have any further questions, please feel free to contact me.
Best regards,
Tina Ullmann
Tax Advisor
