One can consider the German state to be lazy, but it reliably collects the taxpayers’ money, if necessary with fines. This can get expensive if you ignore the property tax return.
The property tax declaration is a challenge for millions of German citizens. Everyone who owned real estate in Germany on January 1, 2022 is obliged to pay the fee. Now the world of tax offices is a very different one and there is also the fact that the period for submitting the property tax is tight:
Since July 1st, it has been possible to make the property tax return by Elster,
until October 31st
the data should be at the tax office at the latest. Inconveniently, the four months overlap with the main holiday period and the income tax deadline, which was extended due to Corona, falls on the same day.
There is already resistance here because of the short deadlines, but it is not yet clear whether the property tax submission period will be extended and you should not speculate on it. What you should definitely not do: Don’t simply ignore the property tax declaration, because the state will get the money and possibly make you pay a lot more.
Measure 1: There is a risk of late penalties
The late payment penalty is directly related to the tight deadline. This is nothing new, the surcharge also applies to the income tax return if you are obliged to submit it and miss the deadline.
After all, there is no automatism in property tax this year that blows out late surcharges from a certain date. However, the tax office may, at its own discretion, set surcharges for late payment of property tax. The exact amount then depends on how long the deadline has been exceeded. We will have to see how the responsible authorities handle this.
Important: This surcharge is really to be understood as a surcharge, you still have to submit the property tax return and then of course also pay the calculated property tax from 2025.
Measure 2: penalty payment of up to 25,000 euros
The state may be slow, but they usually don’t forget to collect their money. If you miss the deadline for the property tax, the tax office will certainly remind you again and set you a new deadline and possibly also threaten a penalty.
Then at the latest you should become active. In the worst case, the tax office could impose a fine. This can be a few hundred euros up to a maximum of 25,000 euros. Incidentally, a fine can also be imposed more than once. You shouldn’t risk that.
Measure 3: The tax office estimates itself
If you don’t submit a property tax return, you risk that the tax office will start making estimates itself. If living space is valued to your detriment, there is a risk of higher property tax. That shouldn’t be what you want either.
Not everyone can handle the property tax return. In the family you can help each other. If, for example, older people have a problem with the Elster tax, the Elster registration can also be used by relatives for the property tax return.
