Costs and taxes
Property tax on vacant land in Germany: Grundsteuer C
What a German building plot costs in property tax each year since 2025: federal and state models, Grundsteuer C up to 6,450%, worked examples.
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The town of Griesheim, near Darmstadt in Hesse, charges ordinary property tax (Grundsteuer B) at a multiplier of 1,290% since the reform. For vacant plots that are ready to build on, it set a Grundsteuer C at 6,450%: exactly five times as much. A building plot left empty costs its owner several times what it would have cost before 2025.
The new German property tax has applied since 1 January 2025. For anyone buying a building plot it is a running cost that is easy to overlook, especially if two or three years pass between purchase and construction, as they often do for buyers planning from abroad. This guide explains how the tax on vacant land is calculated, why the federal state matters, what Grundsteuer C is, and works through examples from Hesse and Brandenburg. It is not tax advice.
Key terms
| German | Meaning |
|---|---|
| Grundsteuer B | ordinary property tax on land and buildings |
| Grundsteuer C | higher tax rate a town may set for vacant, buildable plots |
| Grundsteuerwert | assessed value (federal model) |
| Steuermesszahl / Messbetrag | tax base rate / assessed base amount set by the tax office |
| Hebesatz | the town's multiplier, in percent |
| Allgemeinverfügung | public order listing the plots subject to Grundsteuer C |
| baureif | ready to build on under planning law |
Source: Figures from this guide, documented under “Sources”
The formula, and why the state matters
Three steps: the tax office determines a value or base, multiplies it by a base rate to get the assessed amount (Messbetrag), and the town multiplies that by its multiplier (Hebesatz). The first step depends on the state. Besides the federal model there are state models, among others in Bavaria, Baden-Württemberg, Hamburg, Hesse and Lower Saxony. For vacant land the states fall into three groups:
| Group | States | Basis for vacant land |
|---|---|---|
| Federal model, 0.34‰ | among others Brandenburg, North Rhine-Westphalia, Rhineland-Palatinate, Schleswig-Holstein, Thuringia | area × land value × 0.34‰ |
| Federal model, own base rate | Saxony 0.36‰, Saarland 0.64‰, Berlin 0.45‰, Bremen 0.75‰ | as federal, different rate |
| Own state model | Baden-Württemberg (land value, 1.30‰), Bavaria (area), Hamburg (residential location), Hesse (area-factor), Lower Saxony (area-location) | state property tax act |
Source: Figures from this guide, documented under “Sources”
Berlin and Bremen adopted their own rates in 2024, lighter on homes and heavier on vacant land: Berlin 0.31‰ for residential plots and 0.45‰ for vacant ones, Bremen 0.31‰ and 0.75‰. North Rhine-Westphalia keeps the federal model but has let its towns set split multipliers since 2024; the town's multiplier bylaw shows which one applies to vacant land.
Federal model: for vacant land the assessed value is normally plot area × official standard land value (Bodenrichtwert, section 247 Valuation Act), and the base rate for vacant land (section 246 Valuation Act) is 0.34‰ under section 15 of the Property Tax Act.
Tax = area × land value × 0.00034 × multiplier
Hesse (area-factor model): land counts at €0.04 per m², times a location factor: the plot's land value divided by the town's average, raised to the power 0.3. The base rate for land is 100% (section 6(1) of the Hessian Property Tax Act, HGrStG).
Tax = area × €0.04 × factor × multiplier
The 0.3 exponent dampens location: a plot worth twice the town average gets a factor of 2^0.3 ≈ 1.23, not 2.
Grundsteuer C
Towns may set a separate, higher multiplier for vacant plots ready for building, for planning reasons. The legal basis is section 25(5) of the Property Tax Act in the federal model, section 50a of Baden-Württemberg's state act, and section 13 of Hesse's. The town lists the plots in a published order. Section 25(5) sentence 2 defines "ready to build" (baureif): vacant plots that, by location, shape, size, actual condition and public-law rules, could be built on immediately. A building permit that is required but not yet granted, and private-law obstacles, are disregarded. The rule first applied to the general assessment on 1 January 2025 (section 37(3), according to the German Association of Towns and Municipalities' guidance).
Two consequences for buyers. Land merely expected to become building land (Bauerwartungsland) is not "ready", because public law does not yet allow building. But a dispute with a neighbour over a right of way does not protect a back plot: if public law would allow building, the town can treat it as ready, whatever the private access situation.
Examples from 2026:
| Town | Grundsteuer C | Note |
|---|---|---|
| Griesheim (Hesse) | 6,450% | Grundsteuer B 1,290% |
| Britz (Brandenburg) | 1,800% | for 2026 |
| Rodgau (Hesse) | 300% of the B multiplier | only from the fourth year after the plot became buildable; applies from 1.1.2026 |
| Tübingen (Baden-Württemberg) | set by notice of 13.2.2026 | multiplier bylaw of 14.11.2024 |
Rodgau's grace period matters: buy soon after a plot becomes buildable, build quickly, and you may never pay Grundsteuer C there.
Two worked examples
Griesheim, 600 m² plot (assuming the plot's land value equals the town average, factor 1.0): 600 × €0.04 = €24.00 assessed amount. With Grundsteuer B: 24 × 12.90 = €309.60 a year. With Grundsteuer C: 24 × 64.50 = €1,548.00 a year. At twice the average land value, factor ≈ 1.23 and Grundsteuer C ≈ €1,906. Three years of an empty plot: roughly €4,600–5,700.
Britz, 600 m² plot, federal model (assuming a land value of €60/m²; check BORIS Brandenburg for the actual figure): 600 × 60 = €36,000; × 0.00034 = €12.24; × 18 = €220.32 a year.
The gap is not only the multiplier but the model: low rural land values drive the federal calculation in Brandenburg, plot area drives the Hessian one. Never compare multipliers across state borders; calculate the amount.
Hesse: working out the factor yourself
In Hesse you need the location factor for any calculation:
- Look up the plot's land value in BORIS Hessen.
- Take the town's average land value from the list published by the state (the regional chambers of commerce link to it).
- Divide the first by the second and raise the result to the power 0.3, using the x^y key on any calculator.
Two variants for a 600 m² plot in a town with an assumed average of €250/m², at Griesheim's multipliers:
| Location | Ratio | Factor | Assessed amount | Grundsteuer B (1,290%) | Grundsteuer C (6,450%) |
|---|---|---|---|---|---|
| Land value €400/m² | 1.6 | ≈ 1.151 | ≈ €27.63 | ≈ €356 | ≈ €1,782 |
| Land value €150/m² | 0.6 | ≈ 0.858 | ≈ €20.59 | ≈ €266 | ≈ €1,328 |
The expensive location pays only about a third more, though its land value is almost three times higher. In Hesse, plot size drives the tax more than price per square metre: a 900 m² plot pays one and a half times as much as a 600 m² plot with the same factor.
The same plot in four states
To isolate the effect of the model, take a 600 m² plot with a land value of €300/m² and an assumed multiplier of 500% everywhere (in reality each town sets its own):
| State | Calculation | Assessed amount | Tax at 500% |
|---|---|---|---|
| Federal model (e.g. NRW) | 600 × €300 × 0.34‰ | €61.20 | €306.00 |
| Saxony | 600 × €300 × 0.36‰ | €64.80 | €324.00 |
| Saarland | 600 × €300 × 0.64‰ | €115.20 | €576.00 |
| Baden-Württemberg | 600 × €300 × 1.30‰ | €234.00 | €1,170.00 |
Baden-Württemberg taxes pure land value hardest because it does not value buildings at all; many of its towns cut their multipliers after the reform to compensate. Again: calculate the amount, do not compare rates.
Your timeline is the real variable
Buyers planning from abroad often take longer between purchase and completion: finding an architect, getting the permit, arranging finance in another country. With Griesheim's rates (600 m², factor 1.0):
| Year | Status on 1 January | With Grundsteuer C | With Grundsteuer B |
|---|---|---|---|
| 2026 (purchase in March) | seller owns the plot | seller liable; split in the contract | |
| 2027 | vacant, ready to build | €1,548.00 | €309.60 |
| 2028 (under construction) | shell, not usable | €1,548.00 | €309.60 |
| 2029 | house ready | treated as built land from then on |
Two years cost about €3,100 with Grundsteuer C against about €620 without, a difference that easily pays for faster planning work at the start. In Rodgau, with its three-year grace period, the same timeline would have cost no surcharge.
Finding the numbers yourself
- Multiplier bylaw (Hebesatzsatzung): on the town website under Satzungen, Ortsrecht or Steuern und Abgaben.
- Grundsteuer C order (Allgemeinverfügung): published in the town's official gazette (Amtsblatt), with a map or parcel list; match the district (Gemarkung), Flur and parcel number from the listing or land register extract.
- From the seller: the tax office's value and base-amount notices (Grundsteuerwertbescheid, Grundsteuermessbescheid) and the latest town tax demand.
- Land value: BORIS-D or the state portal; the federal model uses the land value the valuation committee set for the general valuation date of 1 January 2022 (section 247 Valuation Act), not a newer figure shown on the same map.
- Ask the town's tax office (Steueramt) by email if the parcel's status is unclear, and keep the written answer.
Browser translation tools handle the bylaws well enough to find the percentages; the parcel lists in the orders are numbers and need no translation. If the order only contains a map, compare it with the cadastral map in the state geoportal: the parcel outlines are the same, so you can identify your plot without reading a word of the text.
When the answer is bad
Listed for Grundsteuer C but not actually buildable (no road or utilities, unusable shape, contamination to clear): a challenge against the order or the tax demand is possible. The deadline is in the notice's instructions on remedies (Rechtsbehelfsbelehrung) and is short; agree with the seller who acts.
Wrong area or land value in the tax office's notice: an objection (Einspruch) is possible within one month of notification (section 355(1) Fiscal Code).
High Grundsteuer C and an uncertain start date: put the expected years into the price negotiation. Three years at €1,548 is about €4,600.
Buying through a company or with a co-owner abroad: the town writes to the owner registered with the tax office; make sure that address reaches someone who reads German post.
Who pays in the year of purchase
The tax is assessed on the situation at the start of the calendar year (section 9(1) Property Tax Act), and it is owed by the person to whom the tax office attributes the plot (section 10); there is no change of debtor during the year. If you buy during the year, the seller remains liable to the town for that year, and the contract usually passes the cost to you pro rata from handover. From the next year the town bills you once the tax office has updated the records.
If you live abroad: you owe the tax like any owner. Letters come in German from two authorities, the tax office (assessed amount) and the town (tax demand), and payment is due in instalments during the year. A German bank account with a direct debit mandate to the town avoids missed payments and reminder fees. If you appoint a property manager or contact person in Germany, give the town their address. See also buying from abroad; purchase costs are in costs, taxes and fees and land transfer tax by state.
What to agree in the purchase contract
German purchase contracts are notarised in German. If you do not speak German well enough, the deed must be translated for you instead of being read out, by the notary or an interpreter, and you can ask for a written translation to be attached (section 16 of the Notarisation Act, BeurkG). Ask for a draft translation in advance as well. Three tax points to check in the draft:
- Pro rata split from handover: with Grundsteuer C the current year's share is a noticeable amount.
- Seller's statement: whether the seller knows of a Grundsteuer C order covering the plot and whether any challenge is pending, and who continues it.
- Handover of notices: the value, base-amount and tax notices should be handed over with the keys and documents; without them you cannot check the figures later.
If a German bank finances the purchase, give it the Grundsteuer C figure for its affordability calculation; lenders otherwise tend to assume the ordinary rate.
Checklist
- State and model.
- Land value (federal model) or area and town average (Hesse).
- Current B and C multipliers from the town's bylaw.
- Is the parcel in the Grundsteuer C order? Any grace period?
- Years between purchase and completion, and at which rate.
- Contract: pro rata split from handover.
Standard land value, development plan and parcel area for your plot, each with source and date, are in the GrundCheck report: €29 in one language, €39 in English and German. Those are the inputs for the sums above; multipliers and the Grundsteuer C order are published by the town. Select the plot on the map → · See a sample report
With the area and land value from the report you can redo both examples for your own plot. Order the report for this plot → · See a sample report
Sources
- Property Tax Act section 15 (0.34‰), gesetze-im-internet.de; state models (Saarland 0.64‰, Saxony 0.36‰, Baden-Württemberg 1.30‰), deubner-steuern.de, 2.11.2026.
-
DStGB guidance on Grundsteuer C (2024), section 25(5) sentence 2 and section 37(3), dstgb.de; Valuation Act section 246, buzer.de, 2.11.2026.
-
Property Tax Act section 25(5); Valuation Act section 247, anwalt24.de, accessed 1.11.2026.
- Haus & Grund information sheet on property tax for built and vacant land from 2025, hausundgrund.de, 1.11.2026 (secondary).
- Hessian Property Tax Act section 13; IHK Wiesbaden on the 2025 calculation, ihk.de, 1.11.2026.
- Town of Griesheim, presentation of 6.11.2025, griesheim.de (1); Grundsteuer C bylaw, griesheim.de (2), 1.11.2026.
- Britz, Grundsteuer C 2026, britz-chorin-oderberg.de; Rodgau bylaw, June 2026, rodgau.de; Tübingen notice of 13.2.2026, tuebingen.de, 1.11.2026.
- Berlin Property Tax Base Rates Act (BlnGrStMG) of 27.6.2024, berlin.de; Bremen Senate paper on base rates, rathaus.bremen.de, 2.11.2026.
- North Rhine-Westphalia, act on split multipliers, GV. NRW. 2024 p. 490, recht.nrw.de, 2.11.2026.
- Hessian Property Tax Act, section 6, datenbank.nwb.de; Valuation Act, section 247, gesetze.legal; Property Tax Act, section 10, buzer.de, 2.11.2026.
- Notarisation Act (BeurkG), section 16, lexetius.com, 2.11.2026.