Thuringia's CDU rejects property tax hike after €40m shortfall, calling low rate a family relief package
The state's Christian Democrats are holding the line on a 2024 cut that trimmed the real-estate transfer tax to 5%, even as the finance ministry tallies a roughly €40 million annual revenue loss.
The political fault line
Thuringia's CDU parliamentary group has ruled out any increase in the real-estate transfer tax, with faction leader Andreas Bühl telling the Deutsche Presse-Agentur that a hike is "keine Option". The tax was lowered from 6.5% to 5% on 1 January 2024, a move the CDU pushed through while still in opposition, accepting votes from the AfD, which the state's domestic intelligence agency classifies as right-wing extremist. The finance ministry is now weighing a reversal after the MDR reported that the cut left a hole of roughly €40 million in the state's coffers last year.
Das ist keine Option.
What the cut means for buyers
Bühl framed the lower rate as part of a broader package that includes promoting home ownership, repurposing vacant buildings, improving financing options and speeding up permits. He calculated that on a €300,000 purchase the reduction saves a buyer about €4,500. "Gerade für junge Familien ist das viel Geld," he said, arguing that critics focus only on the state's lost revenue while ignoring the cash that stays in household budgets. He added that the transfer tax alone cannot trigger a construction boom, pointing to interest rates, building costs and available supply as equally decisive factors.
Gerade für junge Familien ist das viel Geld.
The Left's counter-argument
The Left party faction has sharpened its criticism, calling the 2024 cut "finanzpolitischer Irrsinn". Its position is that the main beneficiaries have been property investors, not ordinary families, and that the forgone revenue could have funded kindergartens, hospitals or municipal services. The Left contends that households with tighter budgets saw little relief.
Vor allem Familien mit kleinerem Geldbeutel wurde nicht geholfen.
Fiscal pressure and what comes next
The roughly €40 million annual shortfall is now a live issue inside the finance ministry, according to the MDR report. The CDU, however, shows no sign of budging, treating the 5% rate as a structural piece of its economic platform. With the state budget under strain, the standoff sets up a clash between the CDU's property-ownership agenda and the Left's demand to restore revenue for public services. No formal legislative proposal to raise the tax has been tabled, but the ministry's internal review keeps the debate open.
- Tax rate stands at 6.5% of the purchase price.
- Rate cut to 5% takes effect, pushed by CDU with AfD votes.
- Finance ministry records roughly €40 million revenue shortfall.
- CDU faction chief Andreas Bühl rejects any increase; Left reiterates opposition to the cut.
