- Around 20,000 tax-liable secondary residences are found in Berlin.
Last year, Berlin's government raked in approximately 15.5 million euros in tax from property owners with secondary residences. A total of 20,529 such properties were registered, each contributing to this tax revenue. These figures were disclosed in response to a query from the Left Party by the city's Senate. On average, this equates to about 755 euros in annual tax for each secondary residence.
These numbers have been on an upward trend in recent times. By the end of 2019, prior to the Coronavirus pandemic, there were around 17,000 such registered properties, generating revenue of 10 million euros.
Tax Hike Possible?
This tax levied amounts to 15% of the net cold rent, excluding operational and heating expenses. For an apartment of 60 square meters with an annual rent of 7,200 euros, this equates to 1,080 euros in annual tax. Both Economy Senator Franziska Giffey (SPD) and the Left Party have recently hinted at the prospect of a rise in this tax.
As per data from the statistical office, there were approximately 120,000 residents with secondary residences registered in Berlin in 2023, compared to 33,000 households without a primary resident. "This suggests that a significant number of secondary residence owners are residing in communal living arrangements (such as shared flats) and do not currently occupy their own apartment in Berlin's competitive housing market," the Senate explained. "Consequently, the impact of secondary residences on the tight Berlin housing market remains relatively sizeable."
Although the Coronavirus pandemic initially led to a decrease in registered secondary residences in 2020, the trend has since reversed. By 2023, the number of such properties had significantly increased, reaching 120,000. Despite this, the potential tax hike on secondary residences proposed by both the SPD and the Left Party could still impact these property owners.
