Bremen extends reduced Erbbauzins to 31 December 2030: rates, CPI indexation and eligibility

What Bremen decided and from when

On 20 March 2026, Bremen’s Senator for Finance issued Circular 04/2026 extending the temporary reduction of municipal Erbbauzins (ground rent) for new leaseholds used for housing and for community/“Gemeinbedarf” purposes. The reduced rates now apply to Erbbaurechte that are contractually ordered up to and including 31 December 2030. The circular is valid from 20 March 2026 to 31 December 2030. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

The extension implements a Senate decision taken on 16 December 2025. The relevant committees approved it on 17 December 2025 (Wirtschaft und Häfen), 15 January 2026 (Mobilität, Bau und Stadtentwicklung) and 23 January 2026 (Haushalts‑ und Finanzausschuss). The substance of the policy is unchanged compared with the 2021 circular (No. 04/2022); only the ordering deadline moved from 31 December 2025 to 31 December 2030. A fresh evaluation is due by Q4 2030. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf))

Rates for residential plots

For plots used exclusively or predominantly for housing, the municipal Erbbauzins remains 2% of the land value agreed in the contract, instead of the regular 5%. This reduced rate is agreed for 20 years from contract signing. After that, it steps up to 3% from year 21, 4% from year 31 and back to 5% from year 41. The exemption does not apply to the Landesfischereihafen Bremerhaven. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

These percentages apply to new municipal or state Bremen leaseholds ordered on or before 31 December 2030. Existing private ground leases are not affected by this municipal policy unless renegotiated with the public landowner. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

Rates for social uses and community housing

For plots used for community purposes, social facilities or collaborative housing (for example community building groups or tenant cooperatives), the Erbbauzins is at least 1% of land value for the first 20 years. After 20 years it rises—subject to the general indexation clause—to at least 2% for the remainder of the lease term. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

Bremen introduced this differentiation in 2020/2021 and kept it in the 2026 extension without altering the percentages. The current extension simply lengthens the ordering window to 31 December 2030. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2022-absenkung-der-erbbauzinssaetze-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2025-bestellt-werden-177103?template=20_gp_ifg_meta_detail_d&utm_source=openai))

Indexation mechanics

Indexation clauses in Bremen’s municipal leaseholds remain in force. The circular states that Erbbauzins is secured to consumer prices and is typically adjusted every five years, within the limits of German law. The CPI mechanism applies over the entire lease term and is separate from the step‑up schedule. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf))

Practically, this means the nominal percentage (for example 2%) applies to an amount that is increased at five‑year intervals by reference to the agreed consumer price index. Buyers should model both effects: the scheduled percentage step‑up and the CPI‑linked increases. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf))

Eligibility and scope

The extension applies to leaseholds on land owned by the State of Bremen or the City of Bremen that are ordered by 31 December 2030. For residential plots, areas within the Landesfischereihafen Bremerhaven are excluded. The measure targets new orders; it does not automatically change existing contracts. Public bodies may still decide case‑by‑case whether to grant a leasehold or sell land under separate guidelines. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

“Gemeinbedarf” is applied broadly in Bremen’s practice and includes social facilities and collaborative or community housing formats. If in doubt about a specific project type, ask the Senator für Finanzen or the relevant property agency to confirm classification before bidding. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

What this means for foreign buyers and investors

For build‑to‑hold residential developers and community housing groups, municipal leasehold in Bremen now offers predictable cash outflows for at least the first 20 years at 2% or 1% of contract land value, respectively, with a known step‑up thereafter. This can lower equity needs versus a freehold land purchase, but investors remain exposed to CPI indexation. Model both rent step‑ups and CPI, and test debt covenants. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

The extension does not change private ground rents or federal law. It is a Bremen‑specific administrative policy for state/city land. If your project sits on non‑public land, these rates do not apply. Professional advice from a German notary (for contract terms), a real‑estate lawyer (for leasehold rights and remedies) and a tax adviser (for deductibility and VAT) is essential. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))

Risks and practical checks

- Indexation risk: the ground rent payment is CPI‑linked, typically adjusted every five years. Periods of higher inflation will increase the cash cost even before percentage step‑ups. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf)) - Tenure profile: after year 20 the rate steps up; ensure affordability under your rental yield or project budget through years 21–40 and beyond. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf)) - Geography: the residential reduction does not apply in the Landesfischereihafen Bremerhaven. ([rathaus.bremen.de](https://www.rathaus.bremen.de/sixcms/media.php/13/20251216_top_3_Absenkung_Erbbauzinsen.pdf)) - Process: only leaseholds “ordered” by 31 December 2030 benefit. Track your transaction calendar and committee approvals. ([transparenz.bremen.de](https://www.transparenz.bremen.de/metainformationen/rundschreiben-des-senators-fuer-finanzen-nr-04-2026-verlaengerung-der-absenkung-der-erbbauzinssaetze-in-bremen-fuer-wohnen-und-gemeinbedarf-fuer-alle-erbbaurechte-die-bis-31-12-2030-bestellt-werden-326885?template=20_gp_ifg_meta_detail_d))