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Berlin Prosecutors Investigate Green Party Chief Over Second Home Tax
The Berlin public prosecutor’s office has started an investigation into Felix Banaszak, co-leader of Germany’s Green Party, for allegedly underpaying the city’s second home tax since 2022. Banaszak acknowledged failing to update his registration with the Berlin tax authorities following several moves within the city, resulting in incorrect tax payments. He pledged full cooperation and committed to promptly settling any outstanding amounts once determined [Source 1].
Details and Implications of the Second Home Tax Issue
The second home tax in Berlin is calculated as a percentage of the net cold rent, with a rate of 15% applicable from 2019 to 2024 and increasing to 20% from 2025 onward. Banaszak’s failure to properly notify his new residence details meant that since 2022 he paid less tax than required based on his previous rental agreements. The politician publicly aired the issue after recently becoming aware that authorities had initiated formal proceedings [Source 3].
Banaszak described the oversight as a regrettable error, emphasizing the responsibility of public officials to maintain transparency and compliance in their personal affairs. He vowed to rectify the underpayment by paying all back taxes as soon as the requisite adjustments are finalized by the tax office [Source 2]. The Berlin prosecutor’s office has refrained from commenting due to tax secrecy rules [Source 3].
What This Means for Expats and Foreign Residents in Germany
Second home tax regulations in Berlin and other German cities require residents to register any additional residences correctly and update their details promptly after moves. As Banaszak’s case highlights, failure to comply can result in investigations and demands for back payments. This is particularly relevant for expats, international students, and foreign workers who frequently relocate or maintain multiple residences in Germany.
Expat residents should be aware that upon moving within Berlin or acquiring a second home, they must notify tax authorities and ensure accurate reporting to avoid penalties. The tax rate applies to the net cold rent and may vary by municipality. Timely compliance protects against legal issues and unexpected financial liabilities as seen in this high-profile case [Source 1][Source 3].
For further details on the investigation, see the original report at Tagesschau: https://www.tagesschau.de/inland/regional/nordrheinwestfalen/zweitwohnsitzsteuer-ermittlungen-banaszak-100.html.
