Has something changed regarding your property? Are you unsure whether this will affect your property tax and how you should report it? Below you’ll find answers to the most important questions on this topic. If you still have questions, you’ll find more detailed information under “Further Links.”

 

Background

Property tax must be paid for every parcel of land and every agricultural or forestry operation in Germany.

Since 2025, property tax for parcels of land has been based on equivalence amounts, and for agricultural and forestry operations, on property tax values.

The tax authorities have determined these amounts as of the reference date of January 1, 2022 (1st main assessment date) and have set the property tax assessment amount based on them.

If there are any changes to the real estate after the reference date of January 1, 2022, the tax office or municipality will review whether this also affects the assessment bases for property tax. You must actively report the change.

 

What changes do I need to report?

You must report that

• a new economic unit has been created (e.g., because a parcel of land was divided),
• an existing economic unit is being taxed for the first time (e.g., because a tax exemption has been revoked), or
• the actual circumstances have changed (e.g., because construction work was carried out, the size of the property has changed, the use of the property has changed, or a property tax assessment reduction has been discontinued).

Examples:

• A sunroom was added.
• A building has been designated a historic landmark for the first time.
• The former apartment is now being rented to a medical practice.
• The office building was previously used by a government agency and is now used by a law firm.
• Part of the parcel of land was sold to a neighbor.
• An apartment building was divided into condominiums.

You must report the change even if it is based on a notarized contract or if you had to apply for a building permit.

If, within a year, only the owner changes because the entire, fully taxable real estate property was sold, gifted, or bequeathed, the tax office will take action on its own initiative. In this case, you are not expected to file a notification.

If, on the other hand, ownership changes

• only for a portion of the property or the agricultural or forestry operation,
• a property that is partially or fully exempt from property tax, or
• a building on land owned by a third party

you must report this to the tax office.

 

Who must report the changes?

The following person must report the change:

• The owner of the agricultural or forestry operation
• The owner of the property
• for buildings on land owned by a third party:
  regarding the building: the owner of the building
  regarding the parcel of land: the owner of the parcel of land
• In the case of a heritable building right: the holder of the heritable building right

 

How do I report the changes?

In Bavaria, you can report changes to your economic unit

• using the “Property Tax Change Notification” form (BayGrSt 5) or
• by submitting a fully completed property tax return (forms BayGrSt 1 through 4)

.

Please refer to the “Forms” section for more information.

You must report the changes by March 31 of the year following the year in which the changes occurred.

 

Where do I need to report the changes?

You must report changes to real estate holdings to the appropriate tax office.

However, if there are changes to the eligibility requirements for a property tax exemption, please report this to your local municipality.

If there are any changes to your personal information (e.g., name, address, bank account information for direct debit), please report this to all relevant agencies.

 

Special Case: Additional Main Assessments for Agricultural and Forestry Operations

For agricultural and forestry businesses, a new main assessment is conducted every seven years. This means that, regardless of whether anything has changed at the business or not, the property tax values are recalculated. The effective date for the second main assessment is January 1, 2029.

 

How is property tax calculated in the first place?

Please refer to the explanations under “Property Tax Starting in 2025; Receipt of the Notice Regarding the Property Tax Value or Property Tax Equivalence Amounts and the Property Tax Assessment Base” as well as“Property Tax; Receipt of the Property Tax Assessment Notice and Payment to the Municipality.”