What is the city tax?
The City Tax, officially known as the “accommodation tax”, is a levy paid by guests staying in hotels, hostels, vacation apartments or other accommodation. Previously, it was 5% of the net overnight price. Since January 1, 2025, the rate has been 7.5 %. This tax is not paid directly to the tax office by the guests, but is collected and passed on by the operators.
Why is there a city tax?
The City Tax was introduced in Berlin in 2014 to generate additional revenue for the city. The idea behind it is that tourists who use the city’s infrastructure and cultural offerings should also make a small contribution to financing these services. Originally, the tax only applied to private trips, while business travelers were exempt. However, this exemption was abolished so that today, with a few exceptions, all guests have to pay the city tax.
Does the City Tax also apply to long-term stays?
Yes, but with restrictions. Originally, only overnight stays of up to 21 days had to be taxed – after that, the city tax no longer applied. However, this regulation was changed on January 1, 2025. Since then, the tax has applied to all overnight stays of up to six months.
This means that
- If you stay in Berlin for up to six months in commercial accommodation (hotel, hostel, Airbnb, etc.), you pay the City Tax for the entire stay.
- It still needs to be clarified whether furnished temporary accommodation is also affected. We believe that the draft law is intended to ensure that these are also covered.
- Only if the stay lasts longer than six months will the tax liability cease completely.
Removal of the 21-day rule
Until the end of 2024, overnight stays of more than 21 days were exempt from the city tax. This exemption was abolished on January 1, 2025, and since then all overnight stays of up to six months must pay the overnight stay tax. These changes were made in order to increase the city’s revenue and distribute the tax burden more evenly. Long-term guests should take these additional costs into account during their stay.
What impact does this have on mid-term tenants?
Many providers of vacation apartments or furnished apartments will have to include the City Tax as long as the stay is less than six months. Accordingly, we expect some dissatisfied tenants throughout Berlin, as they will have to pay more in future. However, this cannot be avoided. We ask all tenants for their understanding.
Tip: If you want to stay longer, you should look for long-term tenancy agreements (over six months) to avoid the city tax.
What does this mean for you as an owner?
This adjustment means that in future we will generally introduce a minimum rental period of 6 months to avoid incurring additional fees of 7.5% of the total booking amount.
Would you like to rent out your condominium furnished? Please contact us to find out more.
Conclusion
The City Tax is an additional tax on overnight stays in Berlin that affects both tourists and long-term guests. While stays of 21 days or more used to be tax-free, the tax has applied to all overnight stays of up to six months since 2025. The city tax will only be waived for longer stays. Anyone wishing to visit Berlin for several months should therefore check carefully whether this tax applies and whether it is worth renting long-term accommodation, ideally for more than 6 months. Further and more detailed information on the City Tax can be found on DEHOGA Berlin and Berlin.de.
