If properties cannot be rented out and therefore remain vacant, you as the property owner can still file an application for remission of property tax (Grundsteuer) for the year 2013 until 31 March 2014, due to a lack of rental income. The application must be submitted to the municipality or, in the case of city-states, to the tax office. However, a fundamental prerequisite for property tax remission is a substantial reduction in income that the taxpayer is not responsible for. Accordingly, the vacancy of the property must not be self-inflicted. You must have made serious and sustained efforts to find new tenants, for example through rental advertisements or by engaging real estate agents. Remember to retain the supporting documentation, as the tax office frequently requests evidence. In the event of a reduction in the normal gross yield, property tax may be reduced by up to 25%; if the yield fails entirely, a 50% reduction in property tax is possible. The "normal gross yield" is the estimated customary gross rent for the year at the beginning of a calendar year.
Frequently asked questions
Frequently asked questions
By when can a property tax abatement for vacant real estate be applied for in respect of 2013?
The application for property tax abatement for 2013 must be filed by 31 March 2014. This deadline is a strict cut-off date; a later application is no longer possible.
Where is the application for property tax remission filed?
The application must be filed with the competent municipality. In the city-states (Berlin, Hamburg, Bremen), however, the tax office (Finanzamt) is responsible.
What are the requirements for a property tax abatement due to vacancy?
There must be a substantial reduction in income that the owner is not responsible for. The landlord must demonstrate that they made serious and sustained efforts to find new tenants, for example through advertisements or by engaging a real estate agent. Corresponding evidence should be retained, as the tax office frequently requests proof.
To what extent can property tax be waived in cases of vacancy?
If the normal gross yield is reduced, property tax can be lowered by up to 25%. If the yield is lost entirely, a waiver of 50% is possible. The decisive factor is the estimated normal gross yield, i.e. the customary gross rent at the beginning of the calendar year.
What does 'normal gross yield' mean in the context of property tax remission?
The normal gross yield is the estimated, customary gross rent that could be achieved for the property at the beginning of a calendar year. It serves as a benchmark for assessing the actual reduction in income and determining the amount of the remission.