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November 14, 2019 /
On November 8, 2019, the Federal Council gave its final approval to the property tax reform.
This means that the legislative package can enter into force as planned. The federal states will levy property tax according to the new rules from 2025.
The reform primarily changes the valuation of properties. In future, the valuation will be based on the value-dependent model. In the case of undeveloped land, the value determined by independent expert committees is decisive. In the case of a developed property, the income and rents are also taken into account in order to levy the property tax.
To simplify matters, an average target yield is assumed for detached and semi-detached houses, rental properties and condominiums based on the average net cold rent per square meter and the location of the property.
The value-independent model is an exception to this. If the federal states opt for this form of property tax calculation, the potential reduction in tax revenue cannot be taken into account in the federal state fiscal equalization system.
Despite the reform, property tax is still calculated using the three-stage method, in which the valuation of the property is calculated by multiplying the property value by the tax base and a municipal assessment rate.