How is the assessment value calculated?
Undeveloped land
If the property is undeveloped land, the valuation value is calculated as follows:
Assessment value = sqm of the plot x land value (as of 01.01.1964 or 01.01.1935)
Capitalized earnings method
One-family homes, semi-detached houses, rented residential properties, owner-occupied apartments, commercial and mixed-use properties are generally valued using the capitalized earnings method.
The annual rent (to 01.01.1964 or 01.01.1935), which a tenant would have to pay for the entire calendar year, is multiplied by a multiplier. Surcharges (increasing circumstances) and discounts (increasing circumstances) increase or decrease the tax base.
Whether the building (s)/apartments are (are) used, rented or provided free of charge is irrelevant for the determination of the annual rent and has no influence on it.
Asset value method
Single-family houses in the former eastern part of Berlin are always to be valued using the real value method.
If it is not possible to determine the annual rent for the 1964 assessment values because, for example, these are luxury houses (from the perspective of January 1,1964), the assessment value must be determined using the real value method.
In this procedure, the individual values of the soil, the buildings/s and the outdoor facilities are added together. In order to determine the value of buildings/, the converted room is multiplied by the average production costs (e. g. as of January 1,1964 or January 1,1935) with a deduction based on the building age (up to January 1,1964 or January 1,1935).
If no assessment value was determined for a rental property or a single-family house in the new federal states on 01.01.1991, the real estate tax is essentially based on a fixed amount per square metre of living space, which is adjusted to the assessment rate fixed for the respective calendar year (substitute assessment basis). Rented residential properties or single-family homes constructed after 01.01.1991 are to be valued according to the standard procedure.
The assessment values are to be calculated in DM, rounded down to a full hundred DM and then converted into euros.
