German Burden equalization law

Feared Risks for Property Owners (Scenarios and Warnings)

These are often discussed in financial forums, blogs, and comment sections:
Compulsory Mortgage on Properties: Theoretically, the state could – as in the past – enter a compulsory mortgage in the land register, for example, up to 50% of the market value, to settle public debts.
This burdens the property, reduces its value, and restricts financing freedom.

One-Time Wealth Tax on Asset Values

Scenarios assume the state imposes a one-time tax (e.g., 5% on assets above €2 million), payable over years. Property owners without liquid funds could face pressure – in the worst case, forced sales may be necessary.

Liquidity and Valuation Risks

Additional taxes or compulsory mortgages could reduce rental yields, strain loans, and threaten long-term retirement planning.
Moreover, the valuation of real estate assets is unclear – reference dates, exemptions, or methodological inconsistencies could lead to excessive asset assessments or disputes.

Increased Control through State Registration

The reforms – particularly the property tax reform and proposed central wealth register (discussed from 2025) – increase transparency about property ownership.
Critics see this as a preparatory basis for future wealth taxes.

We have developed a multi-stage process for our clients that significantly complicates access
through the Lastenausgleich or makes third-party access to your assets impossible.

We are happy to provide you with detailed advice.