On 1 January this year, the government adjusted the tax relief on purchased apartments to render properties less attractive for investors. The rate was therefore reduced from 6% in six years to 4% in five years.
The Young Socialists now demand that the rate be abolished entirely and that the government become the most important actor in the real estate market. Contrary to JSL, the Young Democrats recently argued that the tax relief should only apply to responsible owners who do not raise the rents, for instance.
However, both youth fractions of the governing parties agree that the real estate tax needs to be raised and that a speculation tax on unbuilt land or empty apartments needs to be introduced. Though the government appears in favour of implementing both measures, it seems that both the Democrats and Socialists are still at issue about the respective tax rates, according to RTL sources.
