Property market on the rise - The government aims to encourage the development of affordable housing by offering tax benefits.
Anyone offering long-term affordable housing should be granted tax subsidies and support. Social housing will be reintroduced for this purpose by the federal government. "I'm thrilled that we've managed to bring social housing back! It's a significant project from our coalition agreement," said Federal Minister of Construction Klara Geywitz (SPD) to the "Stuttgarter Zeitung" and "Stuttgarter Nachrichten" (Wednesday).
Social enterprises, non-profit organizations, and charitable foundations could provide subsidized housing in the future and enjoy comprehensive tax exemptions. The newspapers hint at this instrument being a part of the annual tax law, which is due to be approved by the federal cabinet on Wednesday. A draft of the law is accessible to the German Press Agency.
To qualify for these tax relief benefits, the rent must stay permanently below market level. The income thresholds are to be established such that approximately 60% of German households can benefit from the new social housing, according to Geywitz. "By introducing social housing, we're creating an additional sturdy pillar for affordable housing in our nation. This is a great day for all tenants," highlighted the minister.
The concept of social housing was abolished in 1990. In their coalition agreement, the SPD, Greens, and FDP vowed to revive it.
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- Klara Geywitz, a prominent figure in the SPD, expressed her excitement about reintroducing social housing as part of the coalition agreement.
- The federal government aims to encourage the development of affordable housing by offering tax benefits, with a focus on long-term solutions.
- In a statement to the "Stuttgarter Zeitung" and "Stuttgarter Nachrichten", Geywitz mentioned that social housing will be a key part of this initiative.
- Social enterprises, non-profit organizations, and charitable foundations may be eligible for comprehensive tax exemptions to provide subsidized housing.
- To qualify for these tax relief benefits, rent must remain permanently below market level, and income thresholds will be established to allow approximately 60% of German households to benefit.
- The coalition agreement between the SPD, Greens, and FDP included a vow to revive social housing, which was abolished in 1990.
- The annual tax law, due for approval by the federal cabinet on Wednesday, includes this instrument to promote affordable housing and social housing in Germany.
- Critics argue that reintroducing social housing may impact real estate market in Germany, with potential consequences for the country's overall tax revenues.
