Property tax ruling 2025: BFH decision expected on December 10

On November 12, 2025, the Federal Fiscal Court (BFH) in Munich heard several test cases on property tax. The focus is on the federal model, which applies in nine federal states and has formed the basis for millions of new property tax assessments since 2025. The property tax ruling 2025 BFH model case federal model could have far-reaching consequences.
The ruling has been announced for December 10, 2025 from 9 a.m. – officially confirmed in the Federal Fiscal Court’s announcement of the date.

What are the property tax test cases about?

The federal model is based on flat-rate values – above all standard land values and flat-rate rents. These are intended to reflect the value of properties, but in practice often lead to unrealistic valuations. Properties in similar locations are classified very differently in some cases.

The proceedings are supported by the German Taxpayers’ Association (BdSt) and the owners’ association Haus & Grund. Both organizations consider the model to be unconstitutional because it could violate the principle of equality in the context of the property tax judgment 2025 BFH model lawsuit federal model.

2.8 million appeals against property tax

Around 2.8 million property owners in Germany have lodged an objection to property tax – mainly citing constitutional doubts.

The following federal states apply the federal model:
Berlin, Brandenburg, Bremen, Mecklenburg-Western Pomerania, North Rhine-Westphalia, Rhineland-Palatinate, Saxony-Anhalt, Schleswig-Holstein and Thuringia . The effects of the property tax ruling 2025 BFH model lawsuit federal model could become particularly relevant here.

Many owners feel that they are treated unequally by the flat-rate assessment: While the tax increases massively in some regions, it remains virtually unchanged in others.

Possible consequences of the BFH ruling

If the BFH comes to the conclusion that the federal model may be unconstitutional, it must refer the proceedings to the Federal Constitutional Court.
There it could be decided that the model must be revised or completely redesigned, which would affect the property tax judgment 2025 BFH model action federal model.

However, if the model is confirmed as constitutional, the plaintiffs plan to take the next step – with a constitutional complaint.

Even if the Federal Constitutional Court later demands a change, an immediate repayment of overpaid property tax is unlikely. It is more likely that a transitional period will be set for legal adjustment.

Federal model & other state models are being put to the test

Bavaria, Hamburg, Hesse and Baden-Württemberg have introduced their own property tax models. However, proceedings are now also underway against these at the BFH.

The Haus & Grund association is calling for a uniform, simple solution nationwide, particularly in view of the BFH model lawsuit federal model in the 2025 property tax ruling.

“We need a comprehensible property tax that is based on realistic values and treats owners fairly.”

Model lawsuit on property tax – take legal action now

If you have lodged an objection yourself and would like to take legal action against the property tax, you can use the property tax sample complaint from PepperPapers.de
The document has a legally secure structure and enables you to raise constitutional objections correctly and on time – without the need for a lawyer, but with legally sound wording.

What happens next: verdict 2025 on December 10

The BFH will announce the 2025 property tax ruling on December 10 at 9 a.m. If the BFH has doubts about constitutionality, it will refer the proceedings to the Federal Constitutional Court.
But even if the plaintiffs lose, the court case is not over – the associations are planning a constitutional complaint to have the property tax finally clarified in the highest instance.

It is therefore quite possible that the Federal Constitutional Court will soon have to decide again on the property tax – and thus on the question of whether the current system in Germany is really fair.

Summary:
After the negotiations on November 12, people in Germany are looking forward to December 10, 2025. This is when the BFH’s property tax ruling will be handed down – a decision with a signal effect for millions of property owners nationwide.