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Second-home tax flushes millions into city coffers

If you have several homes, you often have to pay a tax on your second home. However, many cities deliberately forego such a source of income. Why?

Snow lies on the tower and roofs of the New Town Hall. Photo.aussiedlerbote.de
Snow lies on the tower and roofs of the New Town Hall. Photo.aussiedlerbote.de

Municipalities - Second-home tax flushes millions into city coffers

The second residence tax generates hundreds of thousands of euros in revenue every year in several larger cities in Saxony, Saxony-Anhalt and Thuringia. The largest sum of around 1.6 million euros is collected in Leipzig, according to a survey conducted by the German Press Agency in the three states. There, the tax amounts to 16 percent of the monthly net rent of the Leipzig secondary residence. Magdeburg, Dresden, Erfurt, Plauen, Eisenach and Chemnitz also levy a tax on second homes.

The local authorities generally have an interest in increasing the number of residents. The state allocations increase for each person with a main residence. In Magdeburg, for example, the tax rate is ten percent of the annual rent; a total of 1179 people are currently affected. The revenue in 2022 was around 434,000 euros.

The sum was slightly higher in Erfurt. There, it was around 500,000 euros last year. No state allocation is received for residents with a secondary residence, although these people also use public facilities such as swimming pools or libraries, said a city spokeswoman. "This is why larger cities have decided to levy a secondary residence tax."

In Dresden, the revenue in 2022 amounted to around 1.3 million euros, in Chemnitz to 182,000 euros, in Plauen it was around 60,000 euros and in Eisenach 47,000 euros. Exceptions are often made, for example for apartments that are used by independent organizations for therapeutic purposes or for youth welfare purposes. In Eisenach, for example, students and trainees with secondary residences are also exempt until they reach the age of 27.

The cities of Stendal, Wernigerode, Dessau-Roßlau, Zwickau, Jena and Gera, on the other hand, do not levy a secondary residence tax. A spokeswoman for the city of Wernigerode said that the introduction of such a tax had been discussed in the city administration and among city councillors in the past. However, the administrative burden would be too high.

Jena takes a similar view. There, they also rely on a main residence bonus as an incentive. "And that works well," said a spokeswoman for the city. The bonus of 120 euros is granted to students once after registration.

Zwickau has also considered introducing a second residence tax. However, an analysis of the resident data showed that this would mainly affect students, said a city spokesperson. "In order to maintain the attractiveness of Zwickau as a place to study, the idea of levying a second residence tax was not pursued." In addition, the administrative costs and tax revenue would not be in a good relationship.

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Source: www.stern.de

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