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A prerequisite is a reduction of the normal gross yield exceeding the statutory materiality threshold, for which the owner is not responsible.
The application must be submitted by the statutory deadline of 31 March of the following year to the responsible tax office or municipality, depending on the jurisdiction under state law.
Typical examples include structurally caused vacancy in weak regions or significant structural damage caused by natural events such as flooding.
The possible waiver is graduated by law: in the case of a yield reduction of at least 50 percent, 25 percent of the property tax can be waived, and in the case of a complete loss of yield, up to 50 percent.
The exact requirements and graduations are governed by § 33 of the German Property Tax Act (Grundsteuergesetz), which always distinguishes between structural and merely temporary causes of the reduction in yield.