The Munich Expert Committee for Property Values (Gutachterausschuss für Grundstückswerte) has published the new standard land values (Bodenrichtwerte) effective 1 January 2026. In several parts of the city, these values are significantly lower than those published for 1 January 2024. Anyone planning to transfer real estate in Munich to the next generation should therefore review the new standard land values carefully.
Key takeaways
- The standard land values published for Munich as of 1 January 2026 are significantly lower than the 2024 values in several submarkets.
- Lower standard land values may reduce the tax value of real property and, consequently, the inheritance or gift tax burden.
- Whether lower land values actually affect the tax valuation depends on the type of property and the valuation method applied.
- A review of the value-relevant floor area ratio (wGFZ) is particularly important, as it can have a significant impact on the tax value of the land.
- Anyone already considering a property transfer should take into account not only the current valuation but also potential changes to Germany’s inheritance and gift tax rules.
- In some cases, even a partially taxable lifetime gift may be advantageous if it allows substantial assets to be transferred at lower progressive tax rates.
- A sound succession strategy should consider tax, legal, financial and family-related aspects as a whole.
Standard land values in Munich have fallen significantly
The following examples are based on selected extracts from official standard land value information. They do not constitute a comprehensive market analysis, but they illustrate the scale of the changes:
| Location / type of use | Change from 1 January 2024 to 1 January 2026 |
|---|---|
| Sendling / Isarvorstadt, multi-storey residential development area, wGFZ 2.5 | approx. -23.4% |
| Maxvorstadt, multi-storey residential development area, wGFZ 2.5 | approx. -23.3% |
| Trudering, individual residential area, wGFZ 0.7 | approx. -17.6% |
| Solln, individual residential area, wGFZ 0.7 | approx. -25.8% |
| Pasing, individual residential area, wGFZ 0.7 | approx. -15.2% |
| Feldmoching, individual residential area, wGFZ 0.6 | approx. -15.0% |
Particularly in the case of larger plots, such reductions can have a considerable impact. A decrease of EUR 500 per square metre results in a calculated reduction in land value of EUR 350,000 for a plot measuring 700 square metres. Whether and to what extent this has an impact for tax purposes, however, depends on the valuation method and the type of property concerned.
We have explained in detail in a separate article how the new market report affects the tax valuation of real estate in Munich as a whole and which valuation parameters are relevant in addition to standard land values: Real estate valuation in Munich 2026: The new market report is here – and it is highly relevant for tax purposes
When does the standard land value affect the tax valuation?
For inheritance and gift tax purposes, real estate is valued in accordance with the German Valuation Act (Bewertungsgesetz). The significance of the standard land value depends primarily on the type of property and the applicable valuation method.
Condominiums in the Munich city area are generally valued using the comparative value method. The relevant factors are the comparative factors published by the Munich Expert Committee for Property Values. As a result, the standard land value is generally not the decisive valuation parameter.
By contrast, single-family and two-family homes in Munich are in practice generally valued using the cost approach. The same applies to other developed properties. Rental residential properties, commercial properties and most mixed-use properties are generally valued using the income approach. For these types of property, the land value forms a separate component of the tax valuation. Falling standard land values may therefore directly reduce the assessed value of the property for tax purposes.
Planning-law assessment is just as important as the standard land value
At least as important as the published standard land value is the planning-law assessment of the property. Before any tax valuation is carried out, it is essential to determine whether the value-relevant floor area ratio (wGFZ) underlying the relevant standard land value zone is actually applicable to the specific property or whether it needs to be adjusted.
Particularly in Munich, a required adjustment to the wGFZ can have a significantly greater impact on the land value for tax purposes than the general development of standard land values itself.
Important: The Munich tax office reviews the planning-law assessment in every valuation case without exception.
Inheritance tax reform: Why timing may matter
In addition to the decline in standard land values, there is another important factor: Germany’s inheritance and gift tax regime is once again under discussion. The reform models currently being debated range from revised personal allowances and lifetime allowances to changes in tax reliefs and tax rates. Whether, when and in what form any of these proposals will be implemented remains uncertain. For larger real estate portfolios, however, this uncertainty means that a suitable structure available today should not be postponed unnecessarily.
The issue of legitimate expectations is particularly important. Previous legislative processes show that tax increases do not necessarily have to apply only from the date on which a new law is formally enacted. In a recent inheritance tax case, the German Federal Fiscal Court confirmed that retroactive tax increases may be permissible under certain conditions. This does not mean that property owners should automatically expect retroactive changes. It does, however, show that transitional periods between a court ruling and the enactment of amended legislation may involve greater legal risk than many assume.
Anyone already planning a transfer should therefore ask not only: “How low is the value today?” but also: “How certain is it that today’s rules will still apply tomorrow?” The combination of lower standard land values and uncertainty surrounding potential tax reforms is a strong reason to review succession plans in a structured manner now.
When personal allowances are not enough: Can a deliberately taxable gift make sense?
In many families, the available personal tax allowances are not sufficient to transfer high-value real estate in Munich entirely free of gift tax. This is particularly true where the ten-year period required to make full use of the allowances again cannot be observed or where previous gifts have already reduced the available exemptions.
In such cases, it should not automatically be assumed that gift tax must be avoided at all costs. Depending on the circumstances, it may be beneficial to make a deliberately taxable lifetime gift if this allows substantial assets to be transferred while comparatively low tax rates still apply.
The reason lies in the progressive nature of German inheritance and gift tax. Tax rates generally increase according to the value of the taxable transfer and the applicable tax class. For close relatives, particularly children, taxation begins at relatively low rates once the personal allowance has been exhausted and increases only for higher taxable amounts. Making transfers at an early stage may therefore help avoid larger estates being taxed later at higher progressive rates.
This is not a general recommendation to trigger gift tax deliberately. Rather, it is a question of careful planning. Factors such as the property’s value, previously used personal allowances, other assets, the family’s succession strategy, retained rights of use and financing considerations all need to be taken into account. Especially where standard land values have declined, there may be a window of opportunity in which a partially taxable transfer is nevertheless economically advantageous.
Transferring real estate: Why a holistic approach is essential
The decision to transfer real estate should not be based solely on the currently lower standard land values. While they provide an important reason to review an existing succession plan, they are only one element of the overall picture.
In practice, several issues need to be considered together: Which valuation method applies under the German Valuation Act (Bewertungsgesetz)? Is the property valued using the comparative value, income or cost approach? Can a lower market value be demonstrated through an appraisal, and would obtaining such an appraisal be economically worthwhile? What income tax consequences could arise? Would a family holding company be an appropriate ownership structure? And which estate planning arrangements best secure the long-term succession?
ACCONSIS provides comprehensive advice to property owners on these questions. Successful succession planning requires the coordinated expertise of different legal and tax disciplines, including valuation law, income tax, inheritance and gift tax, corporate law for family holding structures, financing issues, and the assessment of whether obtaining a market value appraisal would be beneficial in the specific case. Estate planning instruments, such as a carefully drafted will or a coordinated succession plan, should also be considered at an early stage.
Taking this holistic approach helps ensure that an attractive tax valuation is not considered in isolation while civil law, family or commercial implications remain overlooked.
Conclusion
The decline in Munich’s standard land values may create an attractive window of opportunity for transferring real estate. However, the published standard land value should not be the only factor guiding such decisions. Anyone already considering a lifetime gift or an anticipated transfer of assets as part of estate planning should review now whether the current valuation environment offers opportunities for a more efficient transfer strategy.
My recommendation
For high-value real estate assets in Munich, an early and coordinated review and transfer strategy can be highly beneficial. We provide comprehensive advice tailored to your situation – please feel free to contact me.
Your ACCONSIS contact
Andreas Hopfgartner
Tax consultant
Service phone
+49 89 547143
or via email
a.hopfgartner@acconsis.de
Frequently Asked Questions About Standard Land Values (Bodenrichtwerte) in Munich
Have Munich’s standard land values decreased in 2026?
Yes. The Munich Expert Committee for Property Values (Gutachterausschuss für Grundstückswerte) published new standard land values (Bodenrichtwerte) effective 1 January 2026. In several submarkets, the published values are significantly lower than those applicable as of 1 January 2024.
Do lower standard land values automatically result in lower gift tax?
No. Whether a lower standard land value actually reduces the taxable value of a property depends on the valuation method applied under German tax law and on the type of property concerned.
Which properties are most likely to benefit?
Properties for which the land value forms a direct component of the tax valuation are most likely to benefit. This applies, in particular, to properties valued under the cost approach (Sachwertverfahren) or the income approach (Ertragswertverfahren).
Should a planned property transfer be brought forward?
There is no one-size-fits-all answer. Lower standard land values may create a favourable window of opportunity for transferring property. At the same time, potential reforms to Germany’s inheritance and gift tax rules could change the legal and tax framework in the future. For this reason, every planned transfer should be reviewed individually before a decision is made.
