Führt eine Senkung der Grunderwerbsteuer zu niedrigeren Wohnkosten?

Abstract

Until 31 August 2006, the nationwide real estate transfer tax rate in Germany amounted to 3.5 % of the purchasing price, regardless of whether the real estate was developed or not. Due to the federalism reform, the jurisdiction for this tax was transferred to the German federal states, which raised the tax rates to as high as 6.5 %. As a result, the real estate transfer tax is criticised as one of the cost drivers of increased prices in German housing markets. In this paper, we discuss the “true” incidence of the real estate transfer tax and of other transaction costs. In doing so, we consider the impact of different market conditions.