Tuesday, November 29, 2022

Latest Posts

How much property tax do I pay for 500 sq m?

Whoever owns a property pays the property tax. The area of ​​the building is also decisive for the height. But that is not all.

At the beginning of each year, your city or municipality sets the

Fixed property tax for all landlords. It is usually collected on a quarterly basis. The amount is based on various factors. It is especially important Residencebut also the landing area it’s important.

Because it determines how high the so-called estimated value fails. It indicates the value of the property and is still fixed in a uniform federal law fiscal Code and the tax rate multiplied by the municipality. The result of the account is your yearly property tax.

The standard value is only valid until the end of 2024. From 1 January 2025 it will apply new property tax calculation, and the unit value is given by tax value of the property replaced. To determine this, owners of land, houses and apartments currently have to file a special declaration with the tax office.

The background is that the estimated value is based on very old data. In the West on the value of land (land reference value) and any real estate thereon as of January 1, 1964, in the East as of January 1, 1935.

For a plot of 500 square meters on which there is no building possibility, only the Bodenrichtwert multiply by the number of square meters on the respective key date to get the unit value. If there is still a house on the property, it gets more complicated: then or that Earnings value or real value method used to calculate the unit value. Read more about this here.

As you can see, the size of your property is just one of many factors that determine the amount of your property tax. This also applies if the property tax value instead of the appraised value applies in the future.

To die Square footage of land and living area it is part of the property tax return, with which the new tax value of the property is determined. In addition, the standard land value again plays a role, as does a statistical net cold yield. You can read more about how property tax is calculated here.

But that’s not all yet. Because as already mentioned, the assessment value and from 2025 the property tax value will still be with the property tax index and the tax rate multiplied by the municipality.

In order not to increase property tax revenue as a result of the reform, the property tax rate will drop significantly from 2025 – 0.031 percent for single-family, two-family, rental and condominium lots and 0.035 percent for commercial, mixed, fractional and other built lots.

At the moment, however, the property tax figures are significantly higher, as the following tables show:

Comes the last Municipal rate in the game. It decides how high the real estate tax will be for you. The reach of cities and municipalities is immense. You can read here how high the maximum assessment rate can be.

How high now Property tax for a plot of 500 m2 varies greatly from municipality to municipality, regardless of whether the property tax calculation is old or new. It also makes a difference whether there are residential buildings or not.

To give you an idea of ​​what you might find, below is an example of a property tax calculation for a Land of 500 sq m according to the federal model. The following key data are assumed:

It all starts with the gross annual income for the living space. This results from the product vital space and the statistically determined monthly net cold rent for your property (found in the table in Annex 39 Valuation Act), adjusted for this Rental level (read from this table) and multiplied by 12 (for the twelve months of a year).

In our example, this means: 220 square meters of living space x €6.12 net cold rent + 0 percent for rent level 3 translates into a gross monthly income of €1,346.40. Multiply by 12 you get the gross annual profit for the apartment: 16,158.80 Euros.

Next, you want to know what the annual gross profit is for the entire property. For this you still need the Gross profit for garage parking spaces know. Here the tax office charges a flat rate of 35 euros per garage, which in turn is adjusted to the level of the rent.

You have to multiply the result by 12 again to get the annual gross profit for the workshops. If you add the annual gross profit for the apartment, you have determined the gross profit for the whole property.

Since the example house has a garage, add another $420 to the apartment’s gross profit ($35 x 1 x 12) to get the Gross profit for the property to be received: 16,158.80 euros + 420 euros = 16,578.80 euros.

Now subtract the so-called from the gross profit of the property management costs (found in Annex 40 Evaluation Act). These depend on the remaining useful life of the building.

Since the sample home is 9 years old on the valuation date, this is 71 years (total economic useful life for 80-year residential buildings – 9 years). For buildings with this remaining useful life, operating costs of 18% are deducted. So: €16,578.80 – 18 percent (€2,984.18) equals €13,594.62 Net income from the property.

To make things even more complicated, the net income of the property is calculated with a so-called duplicator multiplied. The value that applies to you can be found in this table in Schedule 37 of the Valuation Act. In this example it is 33.07, which is a capitalized net profit of 449,574.08 euros is (13,594.62 euros x 33.07).

To get the property tax value in the end, you need the net capitalized income of the property and the discounted land value. To do this, multiply the land area by the standard land value, a conversion factor (Section 257 (1) sentence 2 Valuation Act, Annex 36) and a discount factor (Section 257 (2) Valuation Act, Annex 41).

For the example house, this means: 500 square meters x $300 x 1.00 x 0.1732 = $25,980.

Danger: If the land value before discounting is so high that 75 percent of it is higher than the determined property tax value, this value becomes the property tax value. In this example, the pre-discounted land value is $150,000 (500 square feet x $300 x 1.00). 75 percent is 112,500 euros.

The property tax value must therefore be at least that high. As you will see shortly, it is still significantly higher in this example: because the sum of the net capitalized income and the discounted land value is $475,554.08.

To calculate the property tax you pay, you need to tax value of the property with the fiscal Code and the tax rate multiply by common. So: 475,554.08 euros x 0.031 percent x 610 percent = 899.27 euros.

For the house with 500 sqm of land, an annual property tax of 899.27 euros would have to be paid from 2025. As a reminder: the property tax to be paid can deviate from this calculation, as the appraisal rate that will be applied does not has yet to be determined.

Whoever owns a property pays the property tax. The area of ​​the building is also decisive for the height. But that is not all.

Latest Posts

Don't Miss