Ground – how the taxable value is determined

"Ground" refers to an area of land included in a real estate unit. Your yearly real estate tax decision includes a calculation of the ground’s taxable value and the amount of tax payable for it. The taxable value is based on municipality-specific land price maps and the Tax Administration's valuation guidelines. The taxable value is affected by the following features of the ground:

  • purpose of use
  • permitted building area (building right)
  • location and transport connections
  • suitability for construction purposes
  • degree of completion of municipal infrastructure
  • average land prices in the surrounding area.

The taxable value of building land is always at least €0.75 per square metre throughout the country. The taxable value can rise if the area has been zoned or if the building area permitted for the ground changes. 

The taxable value of the ground is not based on the actual prices at which it has previously been bought or sold.

Real estate tax is based on the taxable value

The taxable value of the ground is calculated by multiplying its taxable value with the real estate tax rate on ground determined by the municipality.

Example: The taxable value of a ground area is €2,980.50. The real estate tax rate on ground determined by the municipality is 1.30%. The amount of real estate tax attributable to the ground is therefore €2,980.50 x 1.30% = €38.75.

Read more about real estate tax rates and check your own municipality’s tax rates

Ground types

A real estate unit may have several ground types. Each ground type is taxed differently. Some ground types are completely exempt from tax.

The real estate tax decision only includes areas of ground that are subject to real estate tax. Different ground types are listed separately on the decision. Tax-exempt areas of ground are not included in the decision, but you can check their details in MyTax.

Land that has detached houses or leisure properties is taxed according to the general tax rate on ground.

Woodland may be exempt from tax if the forest area is larger than two hectares (20,000 m2) or if the forest is part of a farm. Forest areas under two hectares are subject to real estate tax as normal. Fields may be exempt from tax even in smaller properties if they are rented and cultivated.

Agricultural land and wasteland may also be exempt from real estate tax if they belong to farm property. Real estate units under two hectares are generally not considered farms.

Nature conservation areas located on private land

Nature conservation areas located on private land are exempt from real estate tax. The tax exemption applies only to private property owners whose land is a protected area under § 24 of the Nature Conservation Act. The property owner must still pay real estate tax on the buildings and building sites located on the protected land.

Large area reduces the taxable value of ground in sparsely populated areas

Plots with an area of more than 3,000 m2 and located in sparsely populated areas have a reduced taxable value. Nevertheless, the taxable value of a ground area cannot be less than €0.75 per square metre. The price per square metre is reduced for areas exceeding 3,000 m2 as follows:

  • the taxable value of 3,000 m2 is the full price
  • the taxable value of the next 2,000 m2 is reduced by 50%
  • the taxable value of the next 5,000 m2 is reduced by 75%.

If the ground’s surface area exceeds 10,000 m2, the price per square metre is reduced by 90% for the part exceeding 10,000 m2.

Page last updated 3/8/2024