Municipalities - Second home tax: often only low income
In the Berlin area, it is mainly private vacation homes. In the big cities, it is mostly students or commuters who have a second home. And many municipalities in Brandenburg earn money from this: according to the Berlin-Brandenburg Statistical Office, 246 of them levied a second home tax in 2022. For those affected, a not inconsiderable amount is added to the rent, but for the municipalities, the revenue often only makes up a small part of the overall budget, as a survey by the German Press Agency revealed.
Brandenburg an der Havel without a second home tax
Of the four independent cities in the state, only Brandenburg an der Havel does not levy a second home tax. In Cottbus, Frankfurt (Oder) and Potsdam, however, anyone with a second home in the city is liable to pay. For the city of Cottbus, the tax accounts for around 0.06 percent of total revenue: According to a city spokesperson, revenue will fluctuate between around 248,000 euros in 2020 and 318,000 euros in 2022. The tax is based on living space and fixed rates, which are graduated according to furnishings and type of apartment. According to the city, there are six categories in which the tax rates range from €4.44 to €10.26 per square meter.
The tax is calculated differently in Frankfurt (Oder). Here, a flat rate of ten percent of the annual net cold rent is payable. As in other cities, however, there are exceptions to the tax liability, for example for apartments in care homes or women's shelters, garden sheds or apartments used primarily for professional purposes for married couples or life partners.
In Frankfurt, too, the revenue only makes up a small proportion of the total budget. According to the city, 60,000 euros have been budgeted for each of the years 2023 to 2027 - out of a total budget of currently over 304 million euros.
Oranienburg staggers tax rates according to proximity to water
The town of Oranienburg (Oberhavel), on the other hand, has staggered tax rates. It differentiates between three zones depending on their "waterfront location". Zone 1 is located away from water, zone 2 extends up to 300 meters from the water, zone 3 is located directly on a body of water. Depending on the zone, second homes are charged between 4.50 and 7.50 euros per square meter per year. This will not make the city north of Berlin rich: according to the city, around EUR 195,000 in revenue from the second home tax is planned for 2023, which is 0.14 percent of the entire budget.
Eberswalde (Barnim) also levies a very similar model with three different zones. According to the city council, 7.48 euros per square meter are charged for second homes directly in the city center, while 6.20 euros and 4 euros are due for the more distant districts. According to Eberswalde's own figures, this will bring in around 58,500 euros in 2021 - around 0.06 percent of the total budget.
Financial equalization important reason for the second home tax
Attempting to avoid the municipal tax can be expensive. In Eberswalde, for example, anyone who fails to declare a second home is committing an administrative offense and can be fined up to 5,000 euros. Other cities and municipalities also point out on request that anyone who conceals a second home or fails to report significant changes, such as rent increases, to the authorities is committing an administrative offense.
The local authorities obviously do not want to do without the income, even if the revenue is generally low. According to Jens Graf, Managing Director of the Brandenburg Association of Towns and Municipalities, one of the main reasons for this is the financial equalization between the federal states and municipalities: the so-called key allocations, which the municipalities receive to finance their tasks, only take into account residents registered as having their main residence.
As residents with second homes also use municipal infrastructure such as roads, parks or swimming pools, the municipalities collect at least part of the additional costs directly from taxpayers via the second home tax. According to Graf, the second home tax also has the effect of encouraging those affected to consider registering their main residence in the municipality.
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- Despite not levying a second home tax, Brandenburg an der Havel is still a popular destination for second home buyers in Brandenburg.
- In contrast, municipalities like Cottbus and Potsdam in Brandenburg have a significant portion of their revenues coming from the second home tax.
- Frankfurt (Oder) also follows a flat rate tax model for second homes, with exceptions for certain properties.
- The revenue generated from the second home tax in Frankfurt is only a small fraction of their total budget, similar to other municipalities.
- Oranienburg in Oberhavel provides different tax rates based on proximity to water, with zones 1, 2, and 3 having varying rates.
- Eberswalde in Barnim levies a similar tax model with three distinct zones, with higher rates for properties located in the city center.
- The German Press Agency reported that despite low revenues from the second home tax, municipalities continue to collect it due to financial equalization and infrastructure usage.
- Jens Graf, Managing Director of the Brandenburg Association of Towns and Municipalities, emphasized that second home tax revenue helps cover additional costs from second homeowners using municipal infrastructure.
- Failure to declare or report changes to a second home in municipalities like Eberswalde can result in significant fines due to administrative offenses.
Source: www.stern.de
