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

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  • Fritzsche, Carolin
  • Vandrei, Lars

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.
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Suggested Citation

  • Fritzsche, Carolin & Vandrei, Lars, 2017. "The German Real Estate Transfer Tax: Evidence for Single-Family Home Transactions," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168307, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc17:168307
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    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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