If you own property in Germany, understanding how to file your property tax return in Germany is more important than ever. The landmark Grundsteuer reform that took effect on January 1, 2025, fundamentally changed how property tax (Grundsteuer) is calculated across the country. Whether you're a long-time resident, an expat, or a non-resident investor, this Germany tax filing guide walks you through the entire process — from gathering your documents to submitting your declaration and paying your bill.
Germany's property tax system can seem daunting, especially after the recent overhaul. But with the right information and a clear step-by-step approach, you can file accurately and on time. Let's break it down.
Understanding Germany's Property Tax (Grundsteuer) After the 2025 Reform
Before diving into how to file taxes in Germany for property, it's essential to understand what changed and why.
What Is Grundsteuer?
Grundsteuer is the annual property tax levied on all real estate in Germany — residential homes, apartments, commercial buildings, and undeveloped land. It is collected by local municipalities (Gemeinden) and is one of their most important revenue sources.
There are two main categories:
- Grundsteuer A — for agricultural and forestry land
- Grundsteuer B — for all other developed and undeveloped land (this applies to most property owners)
Why Was the System Reformed?
In 2018, Germany's Federal Constitutional Court (Bundesverfassungsgericht) ruled that the old property tax valuations — based on data from 1935 (East Germany) and 1964 (West Germany) — were unconstitutional because they violated the principle of equal treatment. The legislature was given until December 31, 2024, to implement a new system. As of January 1, 2025, the reformed Grundsteuer is fully in effect.
The Federal Model vs. State Models
Under the reform, Germany adopted a federal model (Bundesmodell) designed by the federal government. However, states (Bundesländer) were given the option to create their own models. Here's how it breaks down:
- Federal Model states (used by most states, including Nordrhein-Westfalen, Rheinland-Pfalz, Schleswig-Holstein, and others): The tax is calculated based on the property's assessed value (Grundsteuerwert), which considers land value, building type, age, and living space.
- Bavaria (Bayern): Uses a pure area-based model (Flächenmodell) — only the size of the land and building matters, not the value.
- Baden-Württemberg: Uses a modified land value model (Bodenwertmodell) — based primarily on the land value and area.
- Hamburg: Uses a residential-privilege model (Wohnlagemodell).
- Hessen: Uses a modified area-and-factor model (Flächen-Faktor-Modell).
- Niedersachsen: Uses a modified federal model with a focus on area and location.
Knowing which model your state uses is the first critical step in filing correctly.
Step 1: Determine Your Obligation and Gather Required Documents
Every property owner in Germany — whether resident or non-resident — is obligated to file a property tax declaration (Feststellungserklärung). Even if you have already submitted your declaration during the initial data collection phase (2022–2024), you must stay informed about any reassessment notices and ongoing obligations.
Who Must File?
- Owners of residential property (houses, apartments, condominiums)
- Owners of commercial property (offices, retail spaces, warehouses)
- Owners of undeveloped land
- Owners of agricultural and forestry land (Grundsteuer A)
- Non-residents who own German property — you are not exempt simply because you live abroad
Documents and Information You'll Need
Before you begin, gather the following:
- Property identification number (Aktenzeichen/Einheitswert-Aktenzeichen) — found on previous property tax assessments or your purchase documents
- Land registry excerpt (Grundbuchauszug) — confirming ownership and plot details
- Plot size (Grundstücksfläche) — in square meters, from your land registry or cadastral office
- Building details — year of construction, type of building (single-family home, apartment, etc.), total living area in square meters
- Standard land value (Bodenrichtwert) — available online through the BORIS portal (Bodenrichtwertinformationssystem) for your state
- Tax identification number (Steuerliche Identifikationsnummer) — your personal or company tax ID
- Co-ownership information — if the property is jointly owned, all owners' details are required
- Rental income details — in some models, whether the property is owner-occupied or rented may be relevant
Tip: Most standard land values (Bodenrichtwerte) can be accessed for free on the BORIS-D portal at www.bodenrichtwerte-boris.de. This is a critical data point in most state models.
Step 2: Complete the Property Tax Declaration (Feststellungserklärung)
The property tax declaration is the formal document through which you report all relevant property data to the tax authority (Finanzamt). Here's how to complete it.
Filing Method: ELSTER (Electronic Filing)
Germany requires property tax declarations to be filed electronically through the ELSTER portal (Elektronische Steuererklärung). Here's how to get started:
- Register at www.elster.de — if you don't already have an account, registration can take up to two weeks as an activation code is sent by mail.
- Log in and navigate to "Formulare & Leistungen" → "Alle Formulare" → "Grundsteuer".
- Select the correct form for your state. If your state uses the federal model, choose "Grundsteuererklärung für Grundvermögen (Bundesmodell)." For state-specific models, the appropriate form will be listed.
- Fill in the required fields using the documents you've gathered.
Key Sections of the Federal Model Form
For the federal model (Bundesmodell), you'll typically complete the following sections:
- Hauptvordruck (GW1): General information — property owner(s), tax ID, property address, land registry details
- Anlage Grundstück (GW2): Property-specific details — plot size, standard land value, property type
- Anlage Wohngebäude: Building details for residential properties — living area, year of construction, number of apartments
- Anlage Nicht-Wohngebäude: Details for non-residential buildings, if applicable
Hardship Exemption: Filing on Paper
In rare cases, taxpayers who cannot reasonably be expected to file electronically (e.g., elderly individuals without internet access) may apply for a hardship exemption (Härtefallantrag) to file on paper. You must request this directly from your local Finanzamt.
Common Mistakes to Avoid When Completing the Form
- Incorrect plot size: Double-check against your Grundbuchauszug — errors of even a few square meters can affect your assessment.
- Wrong Bodenrichtwert: Use the value from the correct reference date (Hauptfeststellungszeitpunkt: January 1, 2022, for the initial 2025 assessment). Values change over time, so don't use current figures unless instructed.
- Forgetting co-owners: All co-owners must be listed, even spouses who share ownership.
- Selecting the wrong property type: A "Zweifamilienhaus" (two-family house) is assessed differently from an "Einfamilienhaus" (single-family house).
- Missing the residential area calculation: Include all habitable rooms, kitchens, bathrooms, and hallways. Exclude cellars, garages, and non-heated attic spaces unless they meet specific criteria.
Step 3: Receive and Review Your Assessment Notices
After you submit your declaration, the tax authority issues three separate notices over time. Understanding each is critical.
1. Grundsteuerwertbescheid (Property Tax Value Assessment)
This notice tells you the assessed value (Grundsteuerwert) of your property as determined by the Finanzamt based on your declaration. It is not a bill — it's the foundation for calculating your tax.
- What to check: Verify that the property type, plot size, living area, and standard land value match what you reported. Errors here will cascade into your final tax amount.
2. Grundsteuermessbescheid (Property Tax Measurement Assessment)
This applies the Steuermesszahl (tax measurement number) to your assessed value to produce the Grundsteuermessbetrag (tax measurement amount).
For the 2025/2026 federal model, the Steuermesszahlen are:
- Residential property: 0.31‰ (0.031%)
- Non-residential property: 0.34‰ (0.034%)
Some states apply reduced rates for residential property to ensure housing remains affordable.
3. Grundsteuerbescheid (Property Tax Bill)
This is your actual tax bill, issued by the municipality (not the Finanzamt). It applies the local Hebesatz (municipal multiplier) to the Grundsteuermessbetrag.
The formula:
Grundsteuer = Grundsteuerwert × Steuermesszahl × Hebesatz
Practical Example
Let's say you own a single-family home in Cologne (Köln), Nordrhein-Westfalen:
- Grundsteuerwert (assessed value): €250,000
- Steuermesszahl (residential): 0.031%
- Hebesatz for Cologne (2025): 515%
Calculation:
- Grundsteuermessbetrag = €250,000 × 0.00031 = €77.50
- Annual Grundsteuer = €77.50 × 5.15 = €399.13
Your annual property tax would be approximately €399.
Want to run the numbers for your own property? Use our Germany Property Tax Calculator to get an instant estimate based on your specific details.
What If You Disagree?
You have the right to file an objection (Einspruch) within one month of receiving each notice. Objections against the Grundsteuerwertbescheid and Grundsteuermessbescheid go to the Finanzamt; objections against the Grundsteuerbescheid go to the municipality. Don't miss the deadline — late objections are generally rejected.
Step 4: Pay Your Property Tax
Once you receive your Grundsteuerbescheid, payment is due according to a standard schedule.
Payment Deadlines for 2025/2026
Property tax is generally paid in quarterly installments:
| Installment | Due Date |
|---|---|
| 1st Quarter | February 15 |
| 2nd Quarter | May 15 |
| 3rd Quarter | August 15 |
| 4th Quarter | November 15 |
Alternatively, you can request annual payment in a single lump sum, due by July 1. You must apply for this option with your municipality by September 30 of the preceding year.
Payment Methods
- Direct debit (SEPA-Lastschrift): The most common and recommended method. Set it up with your municipality to avoid missed payments.
- Bank transfer: Transfer to the municipality's account using the reference number on your tax bill.
- Cash payment: Some municipal offices still accept cash, but this is increasingly rare.
Warning: Late payments incur a surcharge (Säumniszuschlag) of 1% per month on the outstanding amount. Set up direct debit to stay compliant.
Special Considerations for Non-Residents and Expats
If you're a non-resident who owns property in Germany, the property tax obligations apply to you in full. Here are some key points:
Non-Residents Must File
German property tax is a real property tax — it follows the property, not the owner's residency. Whether you live in the US, UK, France, or anywhere else, you must:
- Register with the relevant Finanzamt
- File the Feststellungserklärung via ELSTER
- Pay the Grundsteuer to the municipality
Tax Treaties and Double Taxation
Germany has double taxation agreements (DTAs) with over 90 countries. Under most DTAs (following the OECD Model Tax Convention, Article 6), the right to tax real property income and gains — including property tax — belongs to the country where the property is located (i.e., Germany). This means:
- Germany retains full taxing rights on Grundsteuer regardless of your residency.
- You typically cannot credit German property tax against income tax in your home country (since it's a local/property tax, not an income tax), but you may be able to deduct it as an expense against rental income.
- Consult a cross-border tax advisor to understand how German property ownership affects your overall tax position.
Appointing a Tax Representative
Non-residents who find the process complex often appoint a German tax advisor (Steuerberater) to handle filings and correspondence with the Finanzamt. While not legally required, it's highly recommended — especially if you don't speak German, as all official communications are in German only.
If you also earn rental income from your German property, you may need to file a German income tax return. Use our Germany Income Tax Calculator to estimate your income tax liability.
Key Deadlines and Important Dates for 2025/2026
Staying on top of deadlines is essential to avoid penalties. Here's a summary:
| Action | Deadline/Date |
|---|---|
| New Grundsteuer values take effect | January 1, 2025 |
| Quarterly property tax payments | Feb 15, May 15, Aug 15, Nov 15 |
| Annual lump-sum payment | July 1 |
| Objection deadline (per notice) | 1 month from receipt of notice |
| Report changes to property (e.g., renovations, new construction) | Within 1 month of the change |
| Apply for annual payment option | September 30 of the preceding year |
Don't Forget: Ongoing Reporting Obligations
The initial Feststellungserklärung wasn't a one-time event. You must notify the Finanzamt of any material changes to your property, including:
- New construction or significant renovations
- Demolition of buildings
- Change of property use (e.g., residential to commercial)
- Subdivision or merging of plots
- Change of ownership
Germany may also implement periodic reassessments (voraussichtlich every seven years, with the next scheduled for January 1, 2029), at which point all owners may need to re-file.
Frequently Asked Questions About Filing Property Tax in Germany
Can I file my Grundsteuer declaration in English?
No. The ELSTER portal and all forms are in German only. If you're not fluent, consider using a Steuerberater or a bilingual tax preparation service.
What happens if I miss the filing deadline?
The Finanzamt may issue a reminder (Erinnerung) followed by a penalty for late filing (Verspätungszuschlag) of up to €25,000. In practice, penalties are usually much smaller for individuals, but they add up.
Is property tax deductible against rental income?
Yes. If you rent out your German property, the Grundsteuer you pay is a deductible expense that reduces your taxable rental income for German income tax purposes.
My property value seems too high — what can I do?
If you believe your Grundsteuerwert is incorrect, file an Einspruch (objection) within one month of receiving the Grundsteuerwertbescheid. Provide supporting evidence, such as a recent appraisal or documentation of the property's condition. In recent rulings, German courts have begun acknowledging that taxpayers can challenge inflated values with independent evidence.
Do tenants pay property tax in Germany?
Indirectly, yes. Landlords are legally permitted to pass Grundsteuer on to tenants as part of ancillary costs (Nebenkosten/Betriebskosten) under the German Tenancy Act (Betriebskostenverordnung).
How much will my property tax change under the reform?
This varies enormously. Some property owners saw their bills decrease, while others experienced significant increases — particularly in urban areas with high land values. Use our Germany Property Tax Calculator to estimate your new liability under the reformed system.
Conclusion: Stay Proactive and Informed
Filing your property tax return in Germany doesn't have to be overwhelming. Here are the key takeaways:
- Understand which model your state uses — the federal Bundesmodell or a state-specific alternative.
- Gather all required documents before starting, especially your plot size, standard land value, and building details.
- File electronically via ELSTER — paper filing is only available in exceptional hardship cases.
- Review all three assessment notices carefully and file objections within one month if you spot errors.
- Pay on time — set up SEPA direct debit to avoid surcharges.
- Non-residents are fully obligated — consider appointing a German tax advisor.
- Report any property changes promptly to avoid reassessment issues.
The 2025 Grundsteuer reform is the most significant change to German property taxation in decades. By following this step-by-step guide, you can ensure you're filing correctly and paying only what you owe.
For a quick estimate of your property tax liability, try our Germany Property Tax Calculator. If you also earn income in Germany, our Germany Income Tax Calculator can help you plan your overall tax position.
This article is for informational purposes only and does not constitute tax advice. Tax laws change frequently; consult a qualified tax professional for advice specific to your situation.