Tax Office (Valuation Office)

Tax Office (Valuation Department) is the division within a tax office responsible for the tax valuation of land and real estate. It determines property values for the purposes of inheritance tax, gift tax, and property tax if no current appraisal is available or if the taxpayer does not provide their own evidence.

Responsibilities of the Valuation Office

Under the Valuation Act (BewG), the Valuation Office is responsible for determining:

Property values for inheritance and gift tax: When real estate is transferred as part of an inheritance or a gift, the tax value of the property must be determined. The tax office applies the statutory valuation methods (comparable sales method, income approach, or cost approach pursuant to §§ 182 ff. BewG). The determined value serves as the basis for assessing inheritance or gift tax.

Assessment Procedure: The result of the valuation is recorded in a separate assessment notice. This can be contested with the tax office within one month if the taxpayer considers the assessed value to be too high.

Proof of Lower Market Value: A taxpayer may prove, through an appraisal by a recognized expert (e.g., a publicly appointed and sworn expert or an appraisal committee), that the actual market value is lower than the value determined by the tax office. In this case, the lower value must be applied (Section 198 of the Property Valuation Act).

Property Tax Valuation Following the 2025 Reform

As part of the property tax reform, all properties in Germany had to be revalued (main assessment as of the reference date of January 1, 2022). In Bavaria, the area-based property tax model applies (deviating from the federal model):

• Tax base: Living space × equivalence factor + land area × equivalence factor
• No use of market values; purely area-based
• Responsible authority: Tax office of the respective location

In Nuremberg, the tax offices Nuremberg-North, Nuremberg-South, and Nuremberg-Central are responsible-depending on the property’s location.

How the Tax Office Valuates Real Estate: The Valuation Methods

The tax office applies different valuation methods depending on the type of property:

Comparable Sales Method (§ 183 BewG): This method is primarily used for condominiums and single-family homes when sufficient comparable sales prices from actual transactions are available. The value is derived from the purchase prices of comparable properties recorded by the Appraisal Committee in its purchase price database.

Income approach (§ 184 BewG): Used for rental residential buildings, multi-family homes, and mixed-use buildings. The basis is the achievable annual rent (gross income), from which operating costs are deducted and which is then capitalized using the property interest rate. The land value is determined separately based on the standard land value and added to the total.

Cost approach (§ 189 BewG): Used when there is insufficient comparative or income data available-e.g., for single-family homes in sparsely populated areas or for special-purpose properties. The basis is the construction cost of the building (taking into account depreciation due to age) plus the land value.

Appealing the Assessment Notice: How to Proceed

If a taxpayer considers the value determined by the tax office to be too high, they may file an objection and provide evidence of a lower value. The procedure:

1. Meet the deadline: The objection must be filed within one month of the notice of assessment being issued. The deadline begins on the date the notice is issued (usually 3 days after mailing).

2. Commission an expert opinion: Proving the lower market value (§ 198 BewG) requires an expert opinion from a recognized expert. Recognized experts include publicly appointed and sworn experts (ö.b.u.v.) as well as the Expert Committee.

3. Submit the appraisal: The appraisal is submitted to the relevant tax office as an attachment to the appeal letter.

4. Review by the tax office: The tax office reviews the appraisal. If it meets the requirements (particularly the methodology according to ImmoWertV and market adjustment factors), the lower value must be applied.

The cost of an expert appraisal (starting at approximately 1,500 euros for a full appraisal) is worthwhile if the tax savings exceed the cost of the appraisal. This is often the case for properties valued at over 500,000 euros in Nuremberg.

Practical Tip for Property Owners in Nuremberg and Franconia

We recommend always critically reviewing the tax assessment notice from the tax office in the event of an inheritance or gift of real estate. The tax office uses standardized valuation methods that do not always accurately reflect the actual market. In Nuremberg, where neighborhoods such as Zabo or the Nibelungenviertel are valued very heterogeneously, a professional counter-appraisal can quickly lead to tax savings of several thousand euros.

The appeal must be filed within one month of the notice being issued-do not miss this deadline. We are happy to connect you with experienced tax advisors and qualified experts in the metropolitan area who specialize in property valuation for tax purposes.

Frequently Asked Questions

Which tax offices are responsible for properties in Nuremberg?

There are three tax offices in the city of Nuremberg (Nuremberg-North, Nuremberg-South, Nuremberg-Central), which are responsible based on the property’s location. The Lauf a. d. Pegnitz tax office is responsible for properties in the Nürnberger Land district. The Schwabach tax office is responsible for Schwabach, and the Fürth tax office for Fürth.

As a taxpayer, can I challenge the property value determined by the tax office?

Yes. You can file an appeal within one month of receiving the notice and demonstrate a lower market value through an expert appraisal. The tax office is required to take this lower value into account, provided the appraisal meets the formal and methodological requirements.

Do I also need the tax office’s valuation for a standard real estate purchase?

No. In the case of a purchase for consideration between unrelated third parties, the purchase price generally corresponds to the fair market value-a separate valuation by the tax office is not required. Real estate transfer tax is calculated based on the purchase price. An appraisal by the tax office is only relevant for transfers without consideration (inheritance, gift) and for property tax purposes.

What documents does the appraisal office require for the inheritance tax appraisal?

The appraisal office generally requests: a land registry extract, site plan, construction plans and floor plans, calculation of living space, year of construction and condition of the building, and for rental properties, the current lease agreements and annual rental income. The more complete and the earlier these documents are submitted, the faster and smoother the appraisal process will be.

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