Not only owners are affected: Anyone who leases a garden may also have to take action with the 2022 property tax
Properties such as orchards and gardens must also be revalued as part of the property tax reform. Therefore, even tenants of allotment gardens often have to contribute a small part to the property tax return.
Most owners in Germany are certainly already brooding over the 2022 property tax return – whether it’s their own home or condominium. But did you know that a property tax may also be due for gardens?
Because no property is too small for property tax. In this context, orchards and allotment gardens belong to agriculture and forestry. Here’s what to look out for.
owner or tenant
Even if you own a holiday property or an allotment garden, you still have to pay property tax for it. What is important is not the owner of the property, but the owner – i.e. the person who is entered in the land register.
This means: If you are only a tenant of an allotment garden, you do not have to complete the property tax return for 2022. Because the owner is either a private individual or a municipality. However, you may have to do some legwork for the owner of the garden.
You may have to confirm that the covered area of the garden shed does not exceed a certain size, for example 24 or 30 square meters. This also includes extensions and sheds that are less than a meter away from the cottage.
Important: As a tenant, it is essential that you answer truthfully, otherwise you are liable to prosecution for tax evasion.
However, owners must then submit a separate property tax return for each property. So if you own a holiday property in addition to a condominium, you have to do this separately.
How exactly is the garden taxed?
The good news: the garden surrounding your house does not count as area for forestry and agriculture.
Allotment gardens are usually taxed according to property tax A. The situation is different, however, if the garden shed has a covered area of more than 24 square meters – then the whole thing is categorized as residential property and is slightly more expensive with property tax B.
If you have to submit a property tax return for the garden, then the following information should be included:
- parcel number
- type of use
- earnings metric
- Livestock (if any)
- area of use
Zero euros property tax: Under these conditions, you don’t have to pay anything