The new calculation bases should take the real market value into account. For example, the Haus und Grund association expects increases of 20 to 30 percent in property valuations. If there is no comparative data for the local real estate market, changed calculation bases and increased valuation factors will be used for the valuation from the coming year. However, the Federal Minister of Finance assumes that this will only be a few cases. The corresponding procedures of the Valuation Act would only be used if the local expert committees do not have the opportunity to determine the market value.
In which locations or regions specific real estate will be affected by the changes, there is no nationwide overview. Expert committees do not regularly deliver market data on land values everywhere in Germany. And even if, as in Rhineland-Palatinate, a state real estate market report is presented every two years, increases can be expected in popular regions and locations with increased market prices.
If you have further questions about the withholding tax, please contact the experts at the Altehoefer law firm for international tax advice.