New laws 2026: what property owners need to know

Property tax

The reformed property tax under the Property Tax Reform Act (GrStRefG/GrStG) has been in effect since 1 January 2025. For 2026, the system remains unchanged. However, municipalities can set their own assessment rates, which may lead to significant additional costs depending on the locality. Additionally, § 25 (5) GrStG has allowed the introduction of a so-called Property Tax C for developable, undeveloped plots since 2025. Against the backdrop of ongoing model lawsuits against the federal system before the Federal Fiscal Court (BFH), property owners should carefully review their tax assessments—particularly regarding area and usage—and monitor municipal decisions.

CO₂ pricing and national emissions trading (BEHG)

Under the Fuel Emissions Trading Act (BEHG), the cost of fossil fuel heating is rising. For 2026, a new auction phase is scheduled under § 10 BEHG, with a price range of €55–65 per tonne of CO₂. This increases heating and hot water costs and will likely be reflected in service charge statements.

Heating Cost Ordinance (HeizkostenV) – Consumption metering for heat pumps

The amendment to the Heating Cost Ordinance removed the previous heat pump exemption. Effective 1 October 2024, § 11 HeizkostenV no longer lists heat pumps as an exception, making consumption-based billing mandatory. For buildings with central heat pumps, a transitional period applied: by 30 September 2025, calibrated and remotely readable meters had to be installed (§ 12 (3) HeizkostenV). From the 2025/2026 billing period onward, landlords and property owners must therefore charge based on actual consumption. Failure to do so entitles tenants to reduce their share of heating costs by up to 15 % under § 12 (1) HeizkostenV.

Smart meters / intelligent measuring systems (iMSys) and § 14a EnWG

The rollout of intelligent measuring systems (iMSys) in Germany has become mandatory under the Metering Point Operation Act (MsbG), most recently updated through the Act for a Restart of the Digitalisation of the Energy Transition (GNDEW), and the amendment to the Energy Industry Act (EnWG) via § 14a. Since 1 January 2025, certain groups of consumers and generation facilities are legally required to install iMSys. This includes households with annual electricity consumption over 6,000 kWh, operators of generation systems (e.g., photovoltaics) with installed capacity of 7 kW or more, and facilities with controllable consumption devices such as heat pumps or EV charging stations (§ 14a EnWG).

Dynamic electricity tariffs

From 1 January 2025, electricity suppliers are required to offer dynamic tariffs (e.g., time-variable electricity pricing) under § 41a EnWG. Using such tariffs generally requires an iMSys. Property owners and consumers should assess whether switching to dynamic tariffs is beneficial, depending on consumption patterns and smart meter access.

Charging infrastructure for non-residential buildings (GEIG)

The Building Electric Mobility Infrastructure Act (GEIG) requires that, from 1 January 2025, existing non-residential buildings with more than 20 parking spaces provide at least one EV charging point. For new buildings and major renovations, further obligations apply regarding cabling infrastructure and charging stations. This primarily affects owners and operators of larger buildings or parking facilities.

Solar roof and photovoltaic obligations (state-regulated)

Requirements for installing photovoltaic or solar thermal systems remain regulated at the state level. Property owners must consult the applicable state building codes or solar obligation regulations, depending on the federal state and type of building. This applies to new constructions as well as major roof renovations.

Fireplaces and wood stoves / emissions protection

Older installations (e.g., wood stoves) installed before 22 March 2010 have been subject to stricter emissions regulations since 1 January 2025. New limit values for fine dust and carbon monoxide are mandatory. Non-compliance may result in retrofitting requirements, shutdowns, or fines.

Rent control and conversion restrictions

The legal instrument of the rent cap (Mietpreisbremse) has been extended multiple times. The federal authorisation for states is now valid until 31 December 2029, allowing states to issue or adjust regulations accordingly. The so-called conversion prohibition (§ 250 BauGB)—requiring official approval when converting rental units into condominiums in tight housing markets—has also been extended at least until 2030.

Municipal heat planning & heating system upgrades in existing buildings

Under the planned Heat Planning Act (WPG), large cities (over 100,000 inhabitants) must submit binding heat plans by 30 June 2026; smaller municipalities follow by 2028. Subsequently, the Building Energy Act (GEG) requires that at least 65 % of the new heating capacity in renovated systems comes from renewable energy sources. Property owners should coordinate planned heating replacements with the local municipality in advance.

New EU Buildings Directive (EPBD)

By May 2026, Germany must implement the new EU Directive 2024/1275 on the overall energy performance of buildings into national law. The aim is to gradually improve the energy quality of the building stock. Depending on the implementation, this may introduce new renovation obligations or stricter efficiency standards.

Funding programmes and energy-efficient renovation

A reorganisation of funding programmes is expected in 2026, focusing on energy-efficient renovations, photovoltaics, and heating system replacements. Property owners should review planned investments early, as funding conditions may change.

Digitalisation and energy infrastructure

The rollout of intelligent metering systems will continue in 2026, enabling better control of electricity consumption, self-supply, and grid utilisation. For property owners, this offers greater transparency over energy flows and potential cost advantages.