by Alexander Lehnen and Sebastiano Loreto
On 9 April 2025, the CDU/CSU and SPD presented their coalition agreement, setting out the political guidelines for the coming legislative period.
The coalition agreement gives clear signals: investment and growth through tax incentives and reduction of bureaucracy.
We have summarised the relevant passages from a real estate and tax point of view for you below.
Measures relevant to the real estate industry:
- Planning, construction, environmental, procurement and administrative procedure law is to be comprehensively reformed and uniform procedural law for infrastructure projects is to be created.
- Investments in housing construction and the formation of property ownership are to be stimulated by tax relief and reduced bureaucracy.
- The Building Code will be modernised in two steps to speed up planning and construction processes; Building standards are to be simplified and building type E is to be legally secured.
- Renovations in the housing stock are to become more attractive from a tax point of view in the future.
- An investment fund is to provide equity and debt capital for residential construction projects.
- Social housing is being expanded – with a focus on “young living”.
- The non-profit housing is supported by investment grants.
- The rent brake will be extended by four years in tight housing markets.
- In future, newly concluded residential building insurance policies must include protection against natural hazards; existing contracts are to be supplemented accordingly.
- Property developer contract law is reviewed with regard to consumer protection in the event of the developer’s insolvency.
- The capital requirements for infrastructure projects and venture capital are to be lowered by an amendment to Solvency II, and national capital buffers are to be abolished as far as possible.
- In the future, it will be possible to set up a company within 24 hours – through digital notarizations and automated data exchange between the notary’s office, the tax office and the trade office.
Tax-relevant measures:
- A degressive depreciation of 30% is to apply to investments in equipment in the years 2025–2027 (“investment booster”).
- The corporate tax rate will be reduced by 1 percentage point annually in five steps from 2028; the solidarity surcharge remains unchanged.
- The option model and the retaining privilege for partnerships are to be improved.
- It is being examined whether partnerships with commercial income can also be included in the scope of corporation tax.
- Income tax for small and medium incomes is to be reduced.
- Targeted action is to be taken against bogus relocations to trade tax havens. This could mean in particular stricter tax audits at the affected locations!
- The minimum assessment rate of trade tax will increase from 200% to 280%. This affects the relevant real estate locations.
- Investments by funds in infrastructure and renewable energies are to be facilitated by tax-adjusted framework conditions.
- The energy-efficient renovation of inherited real estate will be tax-deductible in the future.
- Landlords are to be motivated by taxes to create affordable housing.
The 2025 coalition agreement sends clear signals: the coming legislative period is to be characterised by investment impulses, tax relief and simplified procedures. New leeway is opening up for the real estate industry in particular.
One thing is certain: Those who plan strategically and structure their taxes now can benefit from the reform projects!
