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The German Real Estate Transfer Tax: Evidence for Single-Family Home Transactions

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  • Carolin Fritzsche
  • Lars Vandrei

Abstract

This paper uses recent data for single-family home purchases to study the effects of the German real estate transfer tax. We aim to separate the tax’s short-term anticipatory effects from its long-term effects on real estate transactions. The data indicate that an increase in the transfer tax is negatively correlated with the number of transactions that take place in the market for single-family homes. We estimate that a one percentage point higher transfer tax produces enormous anticipation effects and yields approximately 6% fewer transactions over the long run.

Suggested Citation

  • Carolin Fritzsche & Lars Vandrei, 2016. "The German Real Estate Transfer Tax: Evidence for Single-Family Home Transactions," ifo Working Paper Series 232, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_232
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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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