
What will change for property owners in 2020?
The new law on the distribution of brokerage commissions regulates what share of the brokerage commission is paid by the buyer and what share by the seller. At present, there is no uniform legal basis for the distribution of brokerage commissions. It is handled differently from region to region. While in Berlin the buyer pays the entire amount, in Munich it is split between the seller and the buyer. The aim of the uniform regulation is primarily to relieve the burden on buyers. Currently, the broker's commission is usually paid by the buyer, even if the seller originally commissioned the broker. In future, buyers will only have to pay 50 percent of the broker's fee nationwide.
The Berlin rent cap will come into force in March and apply to all properties in Berlin built before 2014. Landlords of these properties will not be allowed to increase rents for five years. Furthermore, rent caps are to be introduced, the value of which will be based on the year of construction and the amenities of the property. If landlords exceed the cap by more than 20 percent, they will have to reduce the rent from next year onwards.
in 2020, there will also be new regulations on property tax for homeowners and landowners. The new property tax will be calculated based on the land value and the rent. Around 36 million properties will be revalued, and experts expect the tax burden for many property owners to increase.
The housing benefit reform will benefit low-income households in 2020. They will receive more housing benefit from January 1. Property owners will receive the housing benefit as a subsidy for additional expenses.
Finally, from 2020, property owners will be able to deduct the costs of individual energy-efficiency renovations from their taxes. These new regulations are part of the climate package agreed by the black-red coalition. The prerequisite for this is that the property owner also lives in the property themselves. Furthermore, the property must be ten years old when the energy efficiency measures are carried out. Twenty percent of the costs of energy-efficient renovation of a building can be deducted from taxes. This is to be done over a period of three years. The maximum amount per household is 40,000 euros. Alternatively, property owners can also take advantage of subsidies from KfW. Eligible renovations include thermal insulation of roofs and walls and the replacement of windows, exterior doors, and heating systems.
Would you like to know how the changes in 2020 will affect the value of your property? Contact us! We will be happy to advise you.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case. Photo: © peshkov/Depositphotos.com