From 1 January 2025, property tax (Grundsteuer) in Bavaria will be calculated according to a new model – the Area Model (Flächenmodell). The goal: fairer taxation of land and a clear separation from property value developments. But how does the new model actually work – and what do owners need to keep in mind?
Why was the property tax reformed?
The Bundesverfassungsgericht (Federal Constitutional Court) declared the old unit values (Einheitswerte) unconstitutional – they were over 50 years old and led to unequal treatment. Therefore, a new system will be introduced starting in 2025.
The Area Model in Bavaria
Unlike many other federal states, Bavaria relies on a value-independent Area Model. This means: in the future, property tax will be based exclusively on the area of the land and building – regardless of the market value. This prevents automatic tax increases when property prices rise.
Who has to pay property tax?
The property tax obligation applies to:
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Owners of detached houses
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Condominiums
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Commercial properties
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Agricultural and forestry businesses
The new property tax is payable from 1 January 2025 – to the respective municipality, not to the Finanzamt. In Bavaria, property tax is thus levied according to the BayGrStG (Bavarian Property Tax Act) on the basis of an Area Model and no longer according to land value and building value. Legally supported by the Bayerische Grundsteuergesetz (10 December 2021). All owners had to submit their declarations by 30 April 2023 (late entry extended until January 2023).
How the Bavarian Area Model works
Land area × 0.04 €/m² – Equivalence amount for land area
Living/usable space × 0.50 €/m² – Equivalence amount for buildings
Total × statutory tax index → Property tax assessment amount (Grundsteuermessbetrag)
× Municipal collection rate (Hebesatz) → Annual property tax
Example:
Land + building result in an equivalence amount → × collection rate (e.g. 400%) = tax for the property.
The Property Tax Declaration
All owners had to submit a property tax declaration between 1 July 2022 and 30 April 2023. Anyone who fails to comply with their notification obligation in the event of changes (e.g. area changes, change of ownership) risks later corrections and possible additional claims.
What is in the property tax assessment notice (Grundsteuerbescheid)?
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The new property tax assessment amount
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The amount of property tax
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The due date
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The bank details of the municipality
Who determines the collection rate (Hebesatz)?
The municipalities (local authorities) – not the state or the Finanzamt. There are different collection rates for:
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Grundsteuer A (Agriculture and Forestry)
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Grundsteuer B (Real estate properties)
The collection rates vary greatly – important for house and apartment owners, as these are decisive for the tax burden.
Can property tax be deferred or waived?
Yes, but only in exceptional cases. This is decided by the municipality – an appropriate application must also be submitted there.
Change of ownership: What needs to be done?
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In the case of a complete sale, inheritance, or gift: The Finanzamt will take action automatically.
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In the case of partial sales or special cases (e.g. buildings on third-party land): Notification by the owner is necessary.
In both cases, the Finanzamt recalculates the property tax value as of 1 January of the following year.
Wrong assessment notice? What you can do:
If you believe your assessment notice is incorrect, you can lodge an objection (Einspruch). Contact your responsible Finanzamt – preferably in writing or via ELSTER.
Summary
Since 1 January 2025, the new property tax calculation according to the Area Model has applied in Bavaria.
As an owner, you should check your assessment notices carefully – especially regarding the area and collection rate.
In case of errors: Lodge an objection.
The Area Model provides a predictable tax base and protects against price shocks, but regional differences in collection rates remain decisive.
**Note
**This article serves as general information and was carefully created by the editorial team of Lexo.Tax. Personal tax advice can only take place within the scope of a membership with Lexo.Tax – and exclusively to the extent permitted by law under § 4 Nr. 11 StBerG (Tax Consultancy Act).
Our tip for questions about property tax
The new property tax affects all owners – but not everyone is on their own.
Even though we, as a Lohnsteuerhilfeverein (income tax assistance association), are not allowed to help directly with the property tax declaration, we are happy to support you within the framework of your income tax return – for example, if property tax can be claimed as professional expenses (Werbungskosten).
Check your total income from rental and leasing (including service charges, levies, etc.) for the assessment year.
Are they below 18,000 € (single) or 36,000 € (married)?
✅ Yes → We, as a Lohnsteuerhilfeverein, are allowed to advise you.
❌ No → You need a Steuerberater (tax consultant) or must submit this independently.
Join now and have your income tax handled stress-free:
https://lexo.tax/en/join/
Mandatory forms for residential or commercial properties
BayGrSt 1 – Main form for property tax declaration
BayGrSt 2 – Property attachment
BayGrSt 1A – Co-owners attachment (only for more than two owners)
BayGrSt 4 – Property tax exemption/reduction attachment (only if exemption or reduction is claimed)
Details:
BayGrSt 1 and BayGrSt 2 are always required.
BayGrSt 1A if there are more than two owners.
BayGrSt 4 if a tax exemption or reduction is applied for.
Additional forms for agricultural and forestry businesses
If you need to report an agricultural and forestry business (LuF), the following are added:
BayGrSt 3 – Agriculture and forestry attachment
BayGrSt 3A – Livestock attachment (only additionally for livestock farming)
BayGrSt 1A and, if applicable, BayGrSt 4 as above, if applicable.
You can find all relevant forms on ELSTER or as a download under Finanzämter in Bayern: Formulare – Weitere Themen A bis Z – Grundsteuer