Merkel to Revive Land Tax on Plots held Speculatively Vacent


An extra 1.5 million apartments and houses must be built in Germany, says Chancellor Angela Merkel. Her commitment to alleviate rental and property price hikes and ease shortages is timed to be fulfilled by 2021….

Merkel told podcast viewers that €2 billion of her coalition’s agenda package would flow as a “massive” injection into social welfare housing projects run by Germany’s 16 federal states….

The situation in Germany’s metropolitan hubs would “hopefully relax somewhat,” she predicted.

Merkel on Saturday also reiterated a February coalition proposal to allow municipalities to apply a dissuasive tax on owners of vacant land who leave their plots unused, hoping to speculate on future windfall sales.

This so-called Grundsteuer C [land tax C] was applied from 1961 until 1963 but then dropped as the era of Merkel’s distant conservative predecessor Konrad Adenauer ended.