Dolls, Mathias and Fuest, Clemens and Krolage, Carla and Neumeier, Florian (2025) Who bears the burden of real estate transfer taxes? Evidence from the German housing market. JOURNAL OF URBAN ECONOMICS, 145: 103717. ISSN 0094-1190, 1095-9068
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This paper examines the effects of real estate transfer taxes (RETT) on property prices using a rich micro dataset of roughly 17 million German properties for the period from 2005 to 2019. Our empirical analysis exploits variation in RETT rate hikes across German states and over time. Our monthly event study estimates indicate a price response that strongly exceeds the change in the tax burden for single transactions. Twelve months after a reform, a one percentage point increase in the tax rate reduces property prices by on average 3%. Price effects are larger for apartments (-4%) than for single-family houses (-2%). Exploring potential mechanisms, we provide evidence that different holding periods are the main driver of the differential price effect between property types.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | ; Real estate transfer taxes; Property taxes; Housing market |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 17 Mar 2026 06:34 |
| Last Modified: | 17 Mar 2026 06:34 |
| URI: | https://pred.uni-regensburg.de/id/eprint/64245 |
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