A tax exemption applies to small photovoltaic systems. Legislators have now harmonised the relevant thresholds and added a clarification.
What is changing
The amendment unifies the maximum permissible gross output of 30 kW (peak) per residential or commercial unit across all building types for the purposes of applying the tax exemption.
Previously, only 15 kW (peak) was permitted for certain buildings. As before, the total gross output may not exceed 100 kilowatts (peak) per taxpayer or co-entrepreneurship.
In addition, it has been clarified that the tax exemption constitutes an exemption threshold (Freigrenze) and not an allowance (Freibetrag).
Entry into force
This applies for the first time to systems acquired, placed into operation or extended after 31 December 2024.
Inheritance tax cannot be paid: residential property does not have to be sold
Anyone who could only pay the inheritance tax by selling inherited residential property may apply for a deferral of the tax.
Background
Upon application, a deferral of up to 10 years is granted insofar as the acquirer can only raise the tax by selling the property they occupy.
The previous deferral rule only covered properties which
- were let for residential purposes at the time of acquisition, and
- met the requirements of the corresponding tax exemption provision.
What is changing
The amendments extend the deferral rule to all cases in which real property is used for residential purposes.
In particular, the new rule now also covers cases in which the property used by the testator or donor is let for residential purposes after the inheritance or gift.
All cases of use for the acquirer's own residential purposes are now also covered, regardless of the type of property — for example, a flat in a multi-family house (rented residential property).
For real property in third countries, the deferral can only be granted if an exchange of information regarding inheritance tax is ensured with that third country and corresponding tax claims can be enforced there. If the exchange of information or enforcement in the third country is no longer ensured, the deferral ends immediately. In this regard, the BMF is to publish a regularly updated list of the states that meet these requirements.
Entry into force
Applies from the day after the promulgation.
Property tax: a lower property value can be demonstrated
Under the so-called federal model, the property tax value is calculated using flat-rate figures. A new option has now been introduced to demonstrate a lower fair market value.
Background
In two proceedings, the BFH ruled that taxpayers must, in individual cases, have the opportunity to demonstrate a value of their property below the assessed property tax value. The assessed property tax value may not exceed the demonstrated lower fair market value by 40% or more.
What is changing
It is now stipulated by law that in such cases the lower fair market value is to be applied. A purchase price agreed in ordinary commercial transactions within one year before or after the main assessment date may also be used for this purpose.
Entry into force
Applies from the day after the promulgation.
Frequently asked questions
Frequently asked questions
Up to what capacity are small photovoltaic systems tax-exempt?
The tax exemption for photovoltaic systems applies uniformly to systems with a maximum permitted gross capacity of 30 kW (peak) per residential or commercial unit, regardless of the type of building. Per taxpayer or co-entrepreneurship, a total of no more than 100 kW (peak) may be installed. The previous limit of 15 kW (peak) for certain buildings no longer applies.
Is the tax exemption for photovoltaic systems an allowance or a threshold?
It is a threshold (Freigrenze), not an allowance (Freibetrag). This means: if the permitted capacity limit is exceeded, the tax exemption is lost in full, not just for the portion exceeding the limit. This clarification has now been formally codified in law.
When do the new rules on photovoltaic tax exemption take effect?
The unified capacity thresholds and the clarification as an exemption limit (Freigrenze) apply for the first time to systems acquired, put into operation, or expanded after 31 December 2024. For older systems, the previous rules remain applicable.
When can inheritance tax on inherited residential property be deferred?
Upon application, a deferral of up to 10 years is granted if the heir could only pay the inheritance tax by selling the inherited residential property. The deferral rule has been extended to all cases in which real estate is used for residential purposes, including rental after the inheritance and owner-occupied use, regardless of the type of property.
What special rules apply to the deferral of inheritance tax for real estate in third countries?
For real property located in third countries, deferral is only granted if tax information exchange and the collection of claims with that state are ensured. If either requirement ceases to apply, the deferral ends immediately. The BMF is expected to publish a regularly updated list of qualifying countries.
Can a lower market value be proven for the property tax value (Grundsteuerwert)?
Yes, under the new statutory rules, taxpayers may prove a lower fair market value (gemeiner Wert) of their property, which must then be applied. A purchase price agreed in ordinary business dealings within one year before or after the main valuation date can also serve as proof. The assessed Grundsteuerwert must not exceed the proven value by 40 % or more.