Glossary
Grundsteuer
Annual Property Tax. The recurring municipal property tax, fully reformed as of 2025 with new state-specific valuation models. Usually a few hundred euros per year for an apartment — and passable to tenants.
The 2025 reform replaced 1964/1935 values; municipalities set multipliers (Hebesätze), and several adjusted them again for 2025/26. Amounts vary by state model, location and size — check the current assessment (Grundsteuerbescheid) in due diligence.
As a recoverable operating cost, Grundsteuer passes to tenants via the Nebenkostenabrechnung in standard leases — it affects tenant affordability rather than your net yield, vacancy periods excepted.