New laws for property owners: what will be important in 2024
Numerous changes affecting property owners will come into force in 2024. These include tax depreciation for energy-efficient refurbishments, changes to estate agent commission, property tax reform and new regulations on housing benefit reform and the rent cap. Find out the most important details about the changes here.
Energy-efficient refurbishment: Utilising tax advantages
Energy-efficient refurbishments can now be tax-deductible. The prerequisite is that the property:
- is at least ten years old,
- and is used by the owner himself.
Up to 20 per cent of the refurbishment costs, up to a maximum of 40,000 euros per household, can be deducted within three years. Eligible measures include
- Replacement of windows and exterior doors
- Modernisation of heating systems
- Insulation of roof surfaces and walls
Alternatively, funding is available from KfW.
Housing benefit reform: support for low-income households
With the housing benefit reform, low-income households receive higher subsidies. Property owners benefit from housing benefit in the form of an encumbrance allowance, which can reduce their monthly costs.
Property tax reform: New calculation basis
In future, property tax will be calculated on the basis of land value and rental prices. This will require a revaluation of around 36 million properties. Experts expect that many property owners will have to expect a higher tax burden.
Rent cap: limiting rents
The rent cap comes into force for properties built before 2014. This provides for
- Rent freeze for five years
- Determination of rent caps according to fixtures and fittings and year of construction
- Reduction of excessive rents that are more than 20 per cent above the upper limit
Estate agent commission: standardised regulation
The estate agent's commission is being reorganised nationwide. In future, buyers will pay a maximum of 50 per cent of the estate agent's fees, regardless of who commissioned the estate agent. This regulation creates clarity and relieves the burden on buyers in particular.
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