Berlin Senate has approved the increase of a tax rate for the purchase of property in the capital. In two and a half months, since the beginning of 2014, it will be increased from 5 to 6%, according to ee24.com citing thelocal.de.
Residential property in Berlin is becoming more expensive: according to Berliner Morgenpost estimates, one sq.m goes for €1,954 now while a year ago it went for €1,757. The housing market is booming: in the last year 53% more apartments were taken out from the rental market to be sold than the year before .
The capital of the Federal Republic has received €300 million in 2009 and €680 million in 2013 due to the property purchase tax. Obviously, the tax increase will facilitate to the city treasury's filling, though it won't be enough to improve the situation.
The fact is that Berlin already has debts of €63 billion. It means every Berliner has a debt of €22 million, which is €2 million more than every Detroiter has. According to the Senate calculations, the tax increase by 1% can bring additional €0,1 billion in the city treasury.