Property tax remission – income reduction – tax office – Hagen – Holzwickede – Kamen – Lünen
A waiver of real estate tax due to a reduction in income from developed real estate is not only possible in exceptional and temporary circumstances, but also, for example, in the event of weak rental demand or the inability to rent out the property due to the generally difficult economic situation.
The property tax waiver depends on the reduction of the gross income (in the case of rented residential properties, the annual gross rent) and can only be applied for if the reduction in income exceeds 50%: (for further details, please refer to our information letter 03/2018 under item 3).
A property tax waiver can only be considered if the landlord is not responsible for the reduction in income. In the case of vacant premises, the landlord must prove that he has made sustained and serious efforts to rent the premises at a fair market rent.
This includes, for example, not only placing advertisements in the regional press and posting offers on the Internet; in the case of apartments with upscale amenities that are only suitable for a certain group of people, it may also be necessary to hire a real estate agent.
The application for a waiver of property tax for 2017 must be submitted by March 31, 2018; in principle, the deadline cannot be extended (cf. Section 41 GrStR).
(Further comments & information on this can be found in our information letter under the item 3, issue 03/2018).