Tax update for real estate agents 2025: Real estate transfer tax, property tax, depreciation, speculation tax and financing at a glance

Taxes in the property industry: News for real estate agents

As Real estate agent you are not a tax consultant - and yet you are at the interface of purchase, financing and tax consequences every day. Your clients expect guidance on Real estate transfer tax, Property tax, income tax on rental income and for Speculation tax. A well-structured explanation and asking the right questions builds trust and increases the likelihood of closing a deal. This is precisely why it is worth knowing the tax levers in financing and, where necessary, working together with specialists such as Christian Seip the Financing factors to dissolve.

Real estate transfer tax in focus: quick overview with calculation example

The Real estate transfer tax (GrESt) is different in every federal state (typically 3.5-6.5 %). It is calculated on the purchase price and is one of the largest additional costs alongside the notary and entry in the land register. Important in practice: In the case of property developer purchases or sales subject to VAT, the Gross purchase price the basis of assessment - the VAT therefore increases the GrESt base.

Since the reform of so-called Share Deals the relevant threshold is often 90 %; holding periods have been extended. This is rarely relevant for traditional flat and house purchases by private customers - but is crucial for project developments and institutional buyers.

Property tax from 2025: the reform will affect buyers and owners

The Property tax reform (introduction of property tax A/B/C) will have a financial impact from 2025. This will be based on the newly determined property values; the local authorities will use these as the basis for their tax calculations. Rates of assessment fixed. For prospective buyers, this means that the historical property tax of the previous owner is only comparable to a limited extent. Ask proactively for the new assessment or the local authority's assessment amount and rate.

Practical benefits for estate agents: In exposés, indicate the Currently expected property tax (with reference to the source, e.g. municipal website). This helps with yield and cash flow calculations and reduces queries after the notary appointment.

Income tax: Letting, depreciation and speculation tax

Rental income is recognised as Income from letting and leasing taxable. Offsetting factors include interest, ongoing management costs and the Depreciation for wear and tear (AfA). For new residential buildings (completion from 2023), an increased straight-line depreciation of 3 % applies in many cases; for older properties often 2 %. In addition, depending on the conditions, a Special depreciation for newly created, subsidisable living space (keyword § 7b EStG).

The following applies to sales: profits within the ten-year speculation period are generally subject to tax. A frequent exception is the Own useIf you have used the property for your own residential purposes in the year of sale and in the two preceding years, the sale is generally tax-free.

A quick numerical illustration: If you buy for €300,000 (including incidental acquisition costs on a pro rata basis) and sell after 6 years for €400,000, a profit of around €100,000 is generated. This is subject to income tax after deduction of allowable costs. For landlords, depreciation during the holding period reduces the current tax burden, but does not affect the speculative profit.

Value added tax: day-to-day brokerage and project view

Brokerage services are generally subject to VAT (currently 19 %). The Small business regulation may apply if your previous year's turnover did not exceed €22,000 and your current annual turnover is not expected to exceed €50,000. Professional estate agents regularly exceed these limits - the brokerage fee must then be shown with VAT.

In property transactions themselves, VAT is a special issue: used residential properties are usually sold VAT-free; for New build from property developer may be subject to VAT. In the case of commercial letting, a Tax liability option useful in order to be able to deduct input tax. Important for buyers: If VAT is incurred on the purchase price, it usually also increases the assessment basis for land transfer tax - this should be included in the financial planning.

How brokers provide tax-conscious advice - without being tax advisors

• Clearly quantify ancillary costs: Property transfer tax, notary, land register, estate agent's commission if applicable - transparent and state-specific.
• Clarify the utilisation objective: Own use vs. capital investment decides on speculative risk, depreciation and cash flow.
• Request documents early: Property tax assessment notice (new), declaration of division, building description, energy performance certificate - basis for tax classification.
• show depreciation potential: Address year of construction, refurbishments, cost breakdown ground/floor vs. building.
• Thinking about financing: Dovetail tax burden and payment dates (GrESt due date) with liquidity planning - it is worth exchanging ideas with financing experts such as Christian Seip.
• Involve a tax consultant: Actively recommend individual questions - this is professional and protects against incorrect advice.

Conclusion: Gaining trust with tax orientation

Current tax developments - from property tax reform to depreciation - have a direct impact on purchase decisions, returns and financing. Estate agents who provide structured information create security, avoid surprises after the notary appointment and are perceived as real problem solvers. Remain clear in your role: No tax advice, but Precise orientation, good sources and the right partners.