Real Time Counter for Real Estate Transfer Tax: How the Government Profits from the Residential Property Boom
Buyers of residential properties in Berlin are not happy at having to shell out real estate transfer tax of six per cent. For a property worth €150,000, an additional €9,000 goes to the treasury. With around 23,000 residential properties sold in the German capital per year, this adds up to a significant amount.
Part-B Immobilien has now set up a real time counter to display the up-to-date level of revenue from real estate transfer tax paid on property sales in eight German cities: here. For each of these cities, the counter also shows the current turnover achieved in the local property market. The data are based on information provided by the local Committees on Property Values.
Call for Tax Cuts
“There’s a double standard currently operating in German politics: on the one hand, the government wants to protect tenants from property investors by implementing regulations such as the new rent-control legislation. On the other hand, the public sector is making a killing from the residential property boom by charging real estate transfer tax,” Part-B’s managing director Jürgen Kriegisch criticized.
Over the past few years, Berlin has steadily increased its real estate transfer tax rate. Recently the federal states of North-Rhine-Westphalia and Saarland also raised theirs. “The majority of those hit by high real estate transfer tax rates are private buyers who invest in a buy-to-let property as a retirement plan or buy an apartment in order to protect themselves against rising rents,” Kriegisch said, adding that many large investors avoid paying real estate transfer tax altogether by negotiating share deals. Kriegisch called for tax cuts and for the government to “stop placing obstacles in the way of its citizens’ wealth-building activities.”
Founded in July 2011 as a subsidiary of Skjerven Group, Part-B Immobilien GmbH aims to provide a hassle-free and professional service helping Berliners and Berliners-to-be find suitable apartments for their own use or as a buy-to-let investment into their financial future. Part-B specializes in selling apartments in prime locations across Berlin. For further information on Part-B, please go to our website at www. Part-B.de.