Grundsteuer
The annual municipal property tax — deductible, and usually passed to the tenant.
Grundsteuer is the property tax levied by the municipality where the property is located, usually in quarterly instalments (15 February, May, August and November). Since 1 January 2025 it has been assessed on new values after the national reform, so many owners received new Grundsteuer notices with changed amounts. For a landlord the Grundsteuer is a deductible Werbungskosten item in the year paid. It is also one of the operating costs that may be passed to the tenant; the tenant's share then comes back as income through the Nebenkostenabrechnung. Both sides appear on Anlage V. Do not confuse it with Grunderwerbsteuer, the one-time transfer tax paid on purchase, which is part of the acquisition cost.
Last reviewed: by Yann Lephay.