The housing crisis in Germany is becoming increasingly acute, especially regarding the lack of social apartments for low-income individuals. The number of these homes has dramatically decreased over the last two decades, and federal authorities are considering reintroducing an abusive occupancy tax. This tax would target tenants who, although no longer eligible, continue to benefit from subsidized rents. Access to social housing is based on a special certificate, but checks are rare, allowing some high-income tenants to remain in these apartments.
The Minister of Construction, Verena Hubertz, proposes that individuals who exceed the income threshold should pay an additional tax without being required to move. This model has already been applied in the state of Hesse since 2016. In Berlin, where the tax was eliminated in 2002, preparations are underway for a return to this system. The tax is calculated based on actual income and the average market rent, and those who legally move into a social housing unit are exempt from taxes for three or four years. Authorities warn that failing to declare income can lead to significant fines. The money collected from this tax will be used for the construction of new social housing, essential for social balance.
The Minister of Construction, Verena Hubertz, proposes that individuals who exceed the income threshold should pay an additional tax without being required to move. This model has already been applied in the state of Hesse since 2016. In Berlin, where the tax was eliminated in 2002, preparations are underway for a return to this system. The tax is calculated based on actual income and the average market rent, and those who legally move into a social housing unit are exempt from taxes for three or four years. Authorities warn that failing to declare income can lead to significant fines. The money collected from this tax will be used for the construction of new social housing, essential for social balance.
Sources
Latest News
22:52
Dan Neculăescu supports human oversight of artificial intelligence and clear rules against abusive use
22:29
The U.S. Federal Reserve decided to maintain the benchmark interest rate at 3.75%-4%, despite persistent high inflation
22:14
Diana Stoica accuses PSD and AUR of blocking the Finance Minister’s hearing in Parliament
22:02
Cristela Georgescu accuses the proceedings in Călin Georgescu’s case of irregularities following the extension of his pretrial detention
21:54
Eurostat: Real per capita income rose by 0.1% in the EU in the second quarter of 2026, while the saving rate fell
See more news