Property-tax (Grundsteuer) reform takes effect

The long-delayed Grundsteuerreform came into force on 1 January 2025 after the Federal Constitutional Court struck down the previous valuation basis. New assessed values are used by each Land — most use the federal "Bundesmodell" based on market rent proxies; Baden-Württemberg, Bavaria, Hamburg, Hessen, and Niedersachsen apply alternative models. Many homeowners and landlords saw notable changes in assessed tax.