Abandoned high-end real estate: Vacated due to increased taxation on costly homes
The German Left Party has put forward a unique proposal to address the housing crisis and wealth inequality in the country - a special tax on luxury villas. This tax, modeled after progressive luxury property taxes in cities like Los Angeles, is aimed at large, high-value properties with unusually large floor areas [1].
According to the party, luxury villas are properties that exceed the usual needs of living. These properties, owned by a select few, are often left largely unused, while affordable housing remains scarce in luxury locations such as Berlin, Munich, Hamburg, and Düsseldorf [1].
The proposed tax would work as an additional levy on top of existing property taxes, similar in spirit to progressive property taxes seen in some US cities. However, the exact tax rate or threshold size/value for the German proposal are not fully detailed in the available search results [1].
The party leader, Jan van Aken, suggests that these individuals should pay a tax for living in such luxury, and the money could be used to finance affordable housing for everyone. He argues that many people cannot find a place to live, whether they are divorced couples, families, or adult children moving out of their parents' homes [1].
The model for this tax is Los Angeles, where it raised 425 million dollars (approximately 364 million euros) last year [1]. However, the tax's proponents argue it could generate significant extra municipal and state revenue by tapping into the wealth held in luxury real estate, possibly helping to fund affordable housing initiatives.
The proposal has faced criticism from various officials. Hamburg's financial senator Andreas Dressel called it "constitutionally questionable," and Bavaria's finance minister Albert Füracker warned it might prompt wealthy owners to relocate abroad, reducing tax revenue instead [1].
In summary, the German Left Party proposes a special tax on luxury villas to address wealth inequality and housing shortages by targeting owners of large, high-value properties. The proposal is controversial and faces legal and political opposition; specific revenue estimates are not publicly available in the sources.
[1] Sources: Various news articles and party statements.
- The German Left Party's unique proposal to fund affordable housing involves a special tax on luxury villas, modeled after progressive luxury property taxes in cities like Los Angeles, which could generate significant extra municipal and state revenue.
- Critics, such as Hamburg's financial senator Andreas Dressel and Bavaria's finance minister Albert Füracker, argue that this proposed tax is constitutionally questionable and may prompt wealthy owners to relocate abroad, reducing tax revenue instead.
