What will change for tenants and landlords in Germany from 2025? Tenants, landlords, and homeowners will have to adapt to new rules, increased costs, and new requirements. Particular attention will be paid to issues such as the cost of CO₂ emissions, energy-efficient construction, and tax changes. This article summarizes the main innovations in the areas of renting, housing, and construction. As reported by AUSNEWS: Новости Германии.
What will change for tenants and landlords in Germany from 2025
- Housing benefit reform: Housing benefit will be expanded to cover more families. Increased income limits and simplified application procedures will particularly help single mothers.
- Non-profit housing: The revival of non-profit housing should promote the development of social housing. Non-profit housing companies will receive tax breaks that are passed on to tenants.
- Pipe insulation requirements: The Building Energy Act (GEG) requires improved insulation of heating and water pipes from 2025. Owners who do not comply with this requirement face fines.
- Electricity supply tariffs: Remuneration for solar electricity may be reduced. Instead, one-time subsidies are being discussed. Owners of solar systems are advised to focus on their own electricity consumption to reduce costs.
- CO₂ tax: The CO₂ tax will continue to rise, making fossil fuel heating significantly more expensive. Landlords and tenants will share the additional costs depending on the level of modernization of the property.
- Energy-efficient house 40 as the standard for new construction: From 2025, new buildings must comply with the “Energy-efficient house 40” standard. This will lead to higher construction costs, but also to government subsidies and lower operating costs.
- Building type E: A new “Building type E” standard is being introduced, which allows for faster and cheaper housing construction. Some building regulations will be simplified without compromising safety.
- Property tax reform: From 2025, property tax will be calculated according to a new model. Depending on the region, taxes may increase or decrease. Landlords will be able to continue passing on costs to tenants.
Changes from 2025: social housing, housing benefits, and energy
Social housing will once again become a priority. From 2025, non-profit housing companies will start to receive tax breaks, which should help to create more affordable apartments. Tenants will be able to take advantage of this if such projects are implemented in their region. In addition, an increase in housing benefits is planned for this year.
The changes will also affect the energy sector. From 2025, heating and water pipes will need to be better insulated to avoid penalties.
Solar panel owners can also expect some changes: instead of fixed payments for feeding electricity into the grid, one-off subsidies may be introduced. This makes it profitable to use your own electricity to reduce costs.
What will change in 2025: CO₂ tax, property tax, new construction standards, and building type E
The CO₂ levy will continue to rise, so those who heat their homes with gas or oil will have to pay more. These additional costs are shared between landlords and tenants, with the share depending on the energy efficiency of the building.
Property tax will be recalculated from 2025. After the reform, the old calculations will no longer apply. This change will affect not only property owners but also tenants, as the tax is included in operating costs.
From 2025, new buildings must comply with the “Energy Efficient House 40” standard. Although the construction of such buildings will be more expensive, this will be offset by government subsidies and lower operating costs. In addition, a new “Type E Building” standard will be introduced, allowing owners to deviate from strict building regulations in order to speed up the construction process and reduce its cost.
