At the 'münchner immobilien fokus' industry event held at the Munich Literaturhaus, the growing disparity between fiscal valuation and actual market prices took centre stage. Aigner Immobilien GmbH, the legal and tax advisory firm Schütz & Fischl GbR, and Hausbank München hosted the forum, which was moderated by journalist Sebastian Krass. The debate was prompted by falling property prices in the wake of the interest rate turnaround, which can lead to inflated assessment bases and correspondingly heavy tax burdens in cases of gifts or inheritances.
In her presentation, Agnes Fischl, tax consultant and specialist lawyer for inheritance law at Schütz & Fischl GbR, explained that the tax authorities are bound by statutory, highly simplified procedures under the Valuation Act. Because the expert valuation committee in Munich distinguishes between only four location quality tiers, the system hardly reflects market complexity. Furthermore, the biennial publication of standard land values creates a time lag. While this delay was often advantageous for taxpayers prior to 2022, it proves to be a drawback in the current phase of falling prices. Property owners often have no choice but to provide counter-evidence through a market value appraisal prepared by an expert certified under DIN EN ISO/IEC 17024 or a publicly appointed and sworn valuer.
Flat-rate benchmark values and the dilemma of the individual property
During the panel discussion, Thorsten Kratzsch, publicly appointed and sworn valuer, and Thomas Aigner, Managing Director of Aigner Immobilien GmbH, outlined the market situation. Both are also members of the Munich expert valuation committee. Kratzsch reported that recent sales are up to ten per cent below the reduced standard land values. Aigner emphasised that every property is unique and that differentiated values prevail even within the same residential complex, which is why schematic valuation models inevitably reach their limits.
Economic pressure on private owners
Rudolf Stürzer, Chairman of the Haus- und Grundbesitzerverein München und Umgebung e.V., highlighted the housing policy dimension. The inheritance tax burden is currently roughly five times higher than it was 15 years ago. Private owners of apartment buildings who wish to secure affordable rents often find themselves forced to sell upon inheriting. If commercial investors take over, there is a risk of changes to the rental structure, which strains social cohesion.
Peter Sedlmeir, Chief Executive Officer of Hausbank München, illustrated the financial pressure to sell with an example calculation: for an inheritance tax loan of one million euros at an interest rate of 4.5 per cent, 45,000 euros would be due annually in interest alone.
As possible reform approaches, Thomas Aigner suggested tax relief options, for instance linked to a binding waiver of rent increases or analogous to business succession models. Complete abolition of the tax, following the Austrian model, also found support among participants and the audience during the event.
