GERMANY Law and Practice Contributed by: Wolfram H. Krüger, Barbara Rybka, Markus Wollenhaupt and Alexander Zitzl, Linklaters
1.3 Proposals for Reform Federal Building Code (Baugesetzbuch) In September 2024, the federal government proposed amendments focusing on affordable housing, innovation, construction speed, climate protection, and adaptation. However, with elec - tions having taken place in early 2025, these changes are unlikely to pass within the current legislative period. Property Tax Reform Effective from 1 January 2025, the reform aims to introduce fairer property tax assessments, standardising property valuations. Tax reduc - tions may occur in regions with lower land val - ues, whereas expensive cities might face higher charges as municipalities can raise tax rates, increasing costs. Growth Opportunities Act From 2025, this act will introduce declining balance depreciation for newly built residen - tial properties, allowing higher depreciation in the early years post-completion. This incentive boosts residential construction for properties Stricter building energy efficiency standards will commence in 2025, potentially requiring own - ers of older properties to modernise to comply, including replacing outdated heating systems. Charging Stations for Electric Vehicles The Electromobility Infrastructure Act mandates non-residential buildings with over 20 parking spaces to install e-vehicle charging stations from 2025, introducing further costs to property own - ers. finished after 1 January 2024. Energy Efficiency Guidelines
CO₂ Tax Increase From 1 January 2025, the CO₂ tax rose from EUR45 to EUR50 per tonne, encouraging a shift from fossil fuels to renewables. Owners, land - lords and tenants face increased heating and operational costs, impacting properties with inefficient systems. State subsidies may support energy-efficient upgrades. Renewable Energy Sources Act 2025 From 1 January 2025, the government eliminat - ed the free feed-in tariff for new photovoltaic (PV) installations during negative electricity pricing, favouring self-consumption. Investment cost subsidies will replace feed-in tariffs, promoting initial investment yet risking profitability during specific periods. Amendments to the Regulations on Remaining Useful-Life Changes from 2025 will impact tax depreciation and valuation, swapping the flat-rate calculation for individual assessments. Expert evaluations may incur additional costs, but they offer greater valuation transparency by reflecting actual prop - erty value loss. Generally, there are freehold titles granting full and absolute ownership, and heritable building rights ( Erbbaurechte ) giving the right to lease the land for a certain amount of time (30–99 years) and to erect buildings on it. Both categories can be split into condominium shares accompanied by special rights of use for a designated area of the property. Properties can be encumbered with various rights in rem, such as easements ( Dienst- 2. Sale and Purchase 2.1 Categories of Property Rights
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