The Annual Tax Act 2024 brings with it extensive changes that are particularly important for property owners. From property tax and photovoltaic systems to inheritance regulations – the law covers numerous aspects that have a direct impact on the management and use of real estate. Here you will find an overview of the key changes and their practical significance.
Fair property tax assessment: more justice for owners
One of the most important changes concerns property tax. Until now, many owners have faced the problem that the property tax value was estimated to be higher than the actual market value of their property. From 2024, it will be possible to prove the lower market value and use this as the basis for the calculation. This regulation is intended to ensure greater tax fairness and is particularly beneficial for property owners whose properties do not correspond to the flat-rate valuation approach.
Extended tax benefits for photovoltaic systems
The law will bring significant improvements for owners of photovoltaic systems from January 1, 2025. The output that is eligible for tax relief will be doubled – from 15 to 30 kilowatts peak per residential or commercial unit. This new regulation applies to both privately used and purely commercial properties.
Important: The tax exemption is a tax-free limit. If the limit is exceeded, the exemption ceases completely. In addition, the regulation applies to all systems that are purchased, commissioned for the first time or expanded from January 1, 2025. Strategic planning of the installation can therefore be worthwhile.
Simplifications for real estate inheritance
The law also brings significant improvements for heirs and donees. A new deferral provision allows taxes due to be paid in installments over a period of up to ten years if payment would only be possible by selling the property. This protects heirs from forced sale and creates flexibility in the management of inherited properties.
The extension of this regulation to all types of residential property, regardless of whether it is owner-occupied or rented out, is particularly advantageous.
New depreciation rules for landlords and investors
From 2023, flexible rules for building depreciation will apply. After special depreciation, as is possible for the construction of new rental apartments, for example, landlords can continue to use the declining balance method of depreciation. However, the prerequisite is that this method was chosen in good time. This change offers landlords more planning options and tax advantages.
Digitization of construction tax deductions
From 2026, applications for refunds of construction tax deductions must be submitted electronically. This should reduce the administrative burden and speed up processing. For special cases of hardship, the traditional paper route remains an option.
Adjustments to trade tax
For companies that hold real estate, the so-called real estate reduction will be linked to the actual real estate tax paid from 2025. This change will create more transparency and simplify the calculation of trade tax.
Clear regulations on real estate transfer tax
The law specifies when a property is part of a company’s assets. The aim is to prevent tax avoidance strategies and to standardize the allocation of real estate in corporate transactions. This applies to new acquisitions and certain earlier transactions.
Conclusion: planning pays off
The Annual Tax Act 2024 brings many opportunities for property owners, but also requires forward-looking planning. Whether it’s the installation of a photovoltaic system, tax optimization through depreciation or the regulation of an inheritance – early and targeted preparation can help you make the most of the new framework conditions. Get support from a tax advisor when making important decisions in order to benefit from the changes to the maximum.