ᐅ Additional Costs When Purchasing a Plot of Land – Property Tax?

Hello,

we are currently considering building a new house, and I have just learned that besides the additional costs when purchasing a plot of land and the usual monthly utility costs for energy, water, waste, etc., there is also the so-called property tax...

The calculation doesn’t seem straightforward and varies depending on the location, but is it theoretically possible that this could amount to several hundred euros per month?

We plan to build about 160 sqm (1,720 sq ft) of living space over two floors on a 700–900 sqm (7,535–9,688 sq ft) plot in North Rhine-Westphalia (Essen, Wuppertal) – I hope I might have made a mistake somewhere in my calculations... If not, this could really be a dealbreaker for many, since that would mean substantial additional costs?

Property tax is nothing new; tenants pay it as well. Otherwise, it usually amounts to a few hundred per year, if at all. In our case, after the last significant increase, it is about 350 euros per year. But as mentioned, it is always paid, whether you are a tenant or an owner.

What did you find out? In previous discussions, property taxes ranged between 350 € and 1000 € per year.

Henrik0817123 schrieb:
The calculation doesn't seem to be that simple and varies depending on the location, but is it theoretically possible that it could be several hundred euros per month?

We want about 160 sqm (1720 sq ft) of living space over 2 floors with a 700-900 sqm (7500-9700 sq ft) plot in NRW (Essen, Wuppertal) – I hope I may have made a mistake somewhere... If not, this could really be a dealbreaker for many, as that would be massive additional costs?

You look up online how high the multiplier rates for Property Tax A and B are.

At some point, after moving in, the tax office sends you a form to fill out (costs for land and house).

The tax office then calculates the so-called assessed value of the property based on formulas that I find hard to understand. This value is expressed in Deutsche Marks, which is not very high because the valuation is linked to a reference year around 1960. From this, a factor (point) is derived.

Multiplying the assessed value factor by the local multiplier rate gives the amount to be paid. If I’m not mistaken, the multiplier rates in Wuppertal are higher than in Essen... I would have to check, but I pay about 500 euros (approximately) per year with a 550 multiplier rate.

Best regards,
Thorsten

Henrik0817123 schrieb:
Hello,

we are currently considering building a new house and I just found out that, besides the additional costs when purchasing land and the typical monthly utility costs for energy, water, waste, etc., there is also the so-called property tax...

The calculation doesn’t seem straightforward and it varies by location, but is it theoretically possible that it could be several hundred euros per month?

We want about 160sqm (1700 sq ft) of living space over two floors on a 700 to 900sqm (7500 to 9700 sq ft) plot in NRW (Essen, Wuppertal) – I hope I might have made a mistake in my calculations... If not, this could really be a deal breaker for many, since that would mean significant additional costs?

Well, those annoying costs exist – there are plenty of calculators available online

Try using the search function at the top right with keywords like property tax or assessment rate – at some point, we had a thread collecting various figures.