How is the property tax for rented properties calculated?
January 19, 2024 | 40,00 EUR | answered by Otto Dornbusch
Dear tax consultant,
I am Lucas Bergmann and have been renting out several properties for several years. Lately, I have been dealing more and more with the issue of property tax and I am unsure about how it is calculated for rented properties.
Property tax is an important ancillary cost item for me as a landlord, and I want to calculate it correctly. Currently, I am unsure if I am calculating the property tax correctly and if I may even be paying too much. Therefore, I would like to learn more about the calculation of property tax for rented properties.
Can you explain to me how property tax is calculated for rented properties? Are there any special regulations or deductions that I, as a landlord, need to consider? How can I ensure that I calculate the property tax correctly and, if necessary, reclaim any overpaid amounts?
I look forward to your expert support and thank you in advance for your help.
Sincerely,
Lucas Bergmann
Dear Mr. Bergmann,
Thank you for your inquiry regarding property tax on rented properties. As a tax consultant specializing in property taxation, I can help you further and explain the calculation of property tax for rented properties in more detail.
Property tax is a tax levied by municipalities and is generally based on the unit value and the tax rate. The unit value is determined by the tax authorities and forms the basis for the calculation of property tax. This value is regularly reassessed and is based, among other things, on the size and location of the property.
There are specific regulations for rented properties. When calculating property tax, it is taken into account whether the property is used by the owner or rented out. For rented apartments, a higher unit value is usually set because they have a higher earning potential. This can also affect the amount of property tax accordingly.
As a landlord, you have the option to pass on the property tax as additional costs to your tenants. However, you should ensure that the billing of additional costs is done correctly and that the property tax is fairly distributed to the tenants. It is also advisable to regularly review the property tax and reclaim any overpaid amounts if necessary.
To ensure that you calculate the property tax correctly, I recommend seeking advice from a tax consultant or tax consultancy firm specializing in property taxation. An experienced expert can help you calculate the property tax accurately and reclaim any overpaid amounts if necessary.
I hope this information has been helpful to you and I am available for any further questions.
Best regards,
Otto Dornbusch
