Posted at 06.08.2019 | | in Market news, News
Black Label Properties welcomes new tax relief laws on employee housing
Leading independent Berlin estate agency Black Label Properties has welcomed new tax regulations passed by the Federal Cabinet last week that will help provide more affordable housing to employees.
Previously, any housing offered by an employer was regarded as a taxable benefit, liable for both income tax and social security charges. Now a tax allowance will be made that allows homes offered to employees to be up to one-third cheaper than the local rental value, up to a ceiling of 20 euros per square meter.
Black Label Properties Director Achim Amann said “This is a really significant change in tax regulation that will help reduce some of the strain on the current housing market. Especially in Berlin, where housing is at such a premium, this measure will help both employees who find it impossible to obtain affordable accommodation and increase incentives for companies to invest in building new housing.”
At the end of the 1970’s there were an estimated 450,000 affordable houses offered by employers, which today has reduced to almost nothing. The new regulations will not only apply to housing owned by an employer, but also any that is rented or leased by them, so making this advantage also available to smaller and medium sized enterprises.
In the longer term, the regulations should encourage larger companies to create their own housing stock, which could also make use of surplus land no longer required for commercial operations to provide new housing.
Achim Amann added “The long periods of time it takes for new housing to be planned, approved and built is a major block to providing the amount of new housing our city desperately needs. We hope that political leaders at both the national and city level now look for further sensible measures that could help increase housing supply and provide real sustainable relief to rising housing costs.”
Black Label Properties works with a diverse range of investors and developers and would be delighted to hear from any local or regional employers who might be interested in leasing or developing new accommodation for their employees.