Property tax update fall 2025 – Part 2: Bavaria

In addition to the federal model, the property tax models of the individual federal states are now also increasingly subject to financial court reviews.  The Munich Fiscal Court agreed with the conclusion of a 2023 assessment by the Nuremberg Fiscal Court regarding the review of the Bavarian area model. According to this assessment, the Bavarian property tax model is formally and materially constitutional and, in particular, does not violate the principle of ability to pay.