Property tax reform 2025: Effects for property and land owners in Freising and Erding

Why was property tax reformed?

The previous property tax calculation was based on standard values from 1935 and 1964, which the Federal Constitutional Court declared unconstitutional as they led to an unfair tax burden. The reform introduces a new calculation basis that is intended to ensure fairer taxation.

The federal model and the Bavarian property tax model in comparison

There are two models for calculating property tax in Germany: the federal model and the Bavarian model.

• Federal model: In the federal model, land value and net cold rent (for residential properties) are included in the calculation. Factors such as location and property value are taken into account, which should ensure a fairer tax distribution. However, this model is more complex and requires more administrative effort.

• Bavarian model: The Bavarian model relies solely on land and building area. The actual value or location of the property is not taken into account. This simple calculation method saves administrative effort, but is less differentiated. This means that valuable properties in good locations are taxed in the same way as less valuable properties.

Effects on owners in the Freising and Erding area

For property and land owners in Freising and Erding, the property tax reform could mean a different tax burden depending on the location and size of the property:

1. Large properties in more rural areas: As the Bavarian model calculates according to area, owners of large properties in more rural regions around Erding can often bear higher tax burdens than would be the case under the federal model.

2. Centrally located properties: Owners of properties in sought-after locations (such as in the inner city area of Freising or near S-Bahn stations) could be relieved in the Bavarian model. As the land value is not taken into account, the tax burden may be lower here.

3. Multi-family houses and rental properties: For multi-family houses and rental properties in urban locations, the Bavarian model means a simplification of the tax calculation. As neither rental prices nor location are taken into account, the tax here could be lower than in the federal model.

4. Commercial properties: The impact on commercial property owners remains difficult to predict. However, the Bavarian model could lead to a higher tax burden for large commercial properties.

What should owners in the Freising and Erding area consider now

The property tax reform in Bavaria may have different effects for owners. It is advisable to check the information provided by the local authority on the new property tax calculation and to calculate the future tax burden at an early stage. Professional advice can help to precisely understand the financial impact of the property tax reform and plan any reserves.

The property tax reform is an opportunity for greater transparency and simpler calculations. Nevertheless, the question remains as to whether the Bavarian model is really fair for all owners. Owners of large properties in particular should keep a close eye on the new calculation method in order to avoid unnecessary costs.

If you are considering selling your property, our experienced real estate consultants from the VON POLL IMMOBILIEN Freising / Erding team will be happy to assist you. Contact us for comprehensive advice and professional support during the sales process.