Los Angeles model: Luxury villas: Left for special tax on expensive real estate

In order to finance social housing, the left requires a special tax on so -called luxury villas. The model is Los Angeles, where such a tax brought in $ 425 million (around 364 million euros) last year, according to a concept of the party leadership that is available to the German Press Agency.

Accordingly, it considers it to be conceivable to introduce a surcharge of five percent for real estate transfer tax on property purchases from four million euros in Germany, for example. A higher rate for property tax for particularly expensive real estate would also be possible.

Party leader Jan van Aken said that many people simply do not find an apartment – whether separate couples, families or adult children who take off from home. “At the same time, there are people who live in many square meters who have luxury villas. They do not enter the majority of their apartments in everyday life at all. We think that they should pay for it to live like this. A tax could be financed by the money for everyone.”

Die Linke had already brought the topics of affordable living and wealth taxes in the Bundestag election campaign. The requirement of a so-called luxury villa tax combines both. However, details are unclear, such as how many real estate in Germany would be affected and how many income would bring this to the state.

In Germany, too, there are “numerous luxury properties that go far beyond the needs of normal living,” says the concept. Van Aken referred to an example: “The most expensive luxury villa has ever been offered in Berlin this year: on the island of Schwanenwerder for $ 82 million. Also in Munich, Hamburg, Düsseldorf there are luxury locations, at the same time affordable living space is scarce.”