Gewerbesteuer minimum raised to 280% (BGBl. I Nr.197, 02 Jul 2026): what it means for a 10‑flat property GmbH in Berlin, Munich and Frankfurt

What changed (statute and effective scope)

The Neuntes Gesetz zur Änderung von Vorschriften im Steuerberatungsrecht sowie im Steuerrecht was promulgated in Bundesgesetzblatt Teil I Nr. 197 on 2 July 2026. The law amends § 16 GewStG so that the statutory minimum Hebesatz (minimum municipal multiplier) is set at 280 % instead of the prior 200 %. The legislative text and official summaries name the change explicitly and the amending law was published on 02.07.2026. See the printed law and the consolidated Gewerbesteuergesetz text for the exact wording. (BGBl. I Nr. 197 / GewStG §16).

How Gewerbesteuer is calculated for a GmbH (formula you need)

For practical calculations you only need three items: taxable trade profit (Gewerbeertrag), the statutory Steuermesszahl and the municipal Hebesatz. The Steuermessbetrag is obtained by applying the Steuermesszahl to the taxable Gewerbeertrag; the final trade tax is the Steuermessbetrag multiplied by the municipal Hebesatz (expressed as a percent). The GewStG sets the legal scheme and the statutory numbers used to compute the Steuermessbetrag and Hebesatz application. For the purpose of isolating the effect of the new minimum, this article focuses on the trade‑tax line (the Gewerbesteuer) rather than corporate income tax or solidarity surcharge.

Worked numbers (clear assumptions and step‑by‑step)

Assumptions (example portfolio): a 10‑flat property held by a GmbH produces an annual taxable Gewerbeertrag of €150,000 (net operating result after allowable adjustments). The statutory Steuermesszahl used to derive the Steuermessbetrag is applied to that Gewerbeertrag (see GewStG).

Step 1 — Steuermessbetrag: 3,5 % × €150,000 = €5,250. Step 2 — Trade tax at old statutory minimum (200 %): €5,250 × 2,00 = €10,500 per year. Step 3 — Trade tax at new statutory minimum (280 %): €5,250 × 2,80 = €14,700 per year. Difference (annual): €4,200 — that is €420 per flat per year (≈ €35 per flat per month).

Smaller example: if Gewerbeertrag were €75,000, the annual increase from 200 % to 280 % is €2,100 (that is €210 per flat, ≈ €17,50 per month).

These numbers show the direct, mechanical impact on the Gewerbesteuer line for a GmbH when the municipal multiplier would otherwise have been at the statutory floor. If the municipality's actual Hebesatz is already above 280 %, the statutory minimum does not raise the firm's local trade‑tax bill further.

Berlin, Munich and Frankfurt: what to check (and why large cities are often unaffected)

Whether a 10‑flat GmbH in Berlin, Munich or Frankfurt actually pays more because of the reform depends entirely on each city's municipal Gewerbesteuer‑Hebesatz. The federal amendment only sets a floor (280 %); it does not lower any city’s existing multiplier. In practice, many large German cities historically set Hebesätze well above a statutory floor, so for those cities the change is purely symbolic. You must check the currently published Hebesatz for the municipality that raises the trade tax bill locally.

How to check: consult the municipality’s finance department page or the consolidated GewStG text for the statutory mechanism. If the city’s Hebesatz is above 280 %, the new minimum does not increase the bill; if it previously had been below 280 %, the city will have to apply at least 280 % for the first affected Erhebungszeitraum.

Timing and restructuring points to consider before year‑end

The amending law was published on 02.07.2026 and the legislative materials and practical guidance state that the rule on the minimum Hebesatz is to be applied for the Erhebungszeitraum 2027. If you are planning restructurings, transfers of title, or conversions that change the taxpayer or tax base for 2027, timing matters: administrative and accounting recognition (taxable years, transfer dates, commercial closings) determines which Erhebungszeitraum a transaction affects. Because the change is a statutory floor for municipalities, simple internal reorganisations that leave the taxable person unchanged will not avoid the new minimum for the Erhebungszeitraum(s) that follow.

Do not rely on this article for case‑specific deadlines. Before you sign or close any transaction that you expect to affect trade‑tax exposure in 2027, instruct a German tax adviser and (if relevant) a notary. Questions to ask them: which Erhebungszeitraum will the transaction affect, how does local law treat intra‑group transfers, and whether municipal notice or retroactive adjustments are possible.

Practical next steps for an international buyer or expat

1) Confirm the current municipal Hebesatz for the property address with the city finance office. 2) Run a short trade‑tax sensitivity using your expected taxable Gewerbeertrag (use the 3,5 % Steuermesszahl and the Hebesatz scenarios: 200 %, 280 %, and the city’s published multiplier). 3) If you are planning a purchase or internal restructuring that will affect the 2027 Erhebungszeitraum, instruct a German tax adviser now — do not assume you can retro‑date economic benefits after 31 December 2026.

This article explains the mechanical effect of the new statutory floor. For transaction‑level structuring, valuation or binding timing advice please consult a Steuerberater (tax adviser) and a notary; tax consequences depend on the facts and on municipal practice.