Anyo\u00adne who lets out a flat and uses gas or oil hea\u00adting has been requi\u00adred to con\u00adtri\u00adbu\u00adte towards CO\u2082 cos\u00adts sin\u00adce 2023. This is gover\u00adned by the CO\u2082 Cost Allo\u00adca\u00adti\u00adon Act (CO2KostAufG). How much land\u00adlords have to pay depends on the building\u2019s ener\u00adgy per\u00adfor\u00admance. The poorer the ener\u00adgy per\u00adfor\u00admance, the hig\u00adher the landlord\u2019s con\u00adtri\u00adbu\u00adti\u00adon. The\u00adre is now an important change.<\/p>\n
On 10 July 2026, Par\u00adlia\u00adment pas\u00adsed the Buil\u00adding Moder\u00adni\u00adsa\u00adti\u00adon Act. It not only includes the much-dis\u00adcus\u00adsed return to free choice of hea\u00adting sys\u00adtems, but also a signi\u00adfi\u00adcant exten\u00adsi\u00adon of the CO\u2082 Cost Act. This is express\u00adly poin\u00adted out by Oli\u00adver Letz\u00adner, a soli\u00adci\u00adtor spe\u00adcia\u00adli\u00adsing in ten\u00adan\u00adcy and flat owner\u00adship law.<\/p>\n
What is new is that, in future, the law will no lon\u00adger cover only direct CO\u2082 cos\u00adts. Cos\u00adts asso\u00adcia\u00adted with the sta\u00adtu\u00adto\u00adry use of cli\u00adma\u00adte-neu\u00adtral fuels, as well as any grid char\u00adges incur\u00adred, can no lon\u00adger be pas\u00adsed on in full to ten\u00adants. Part of the\u00adse cos\u00adts will the\u00adr\u00ade\u00adfo\u00adre be bor\u00adne by the land\u00adlord. This repres\u00adents a signi\u00adfi\u00adcant shift in the finan\u00adcial risk.<\/p>\n
The cur\u00adrent law ope\u00adra\u00adtes on a ten-tier sys\u00adtem. Depen\u00adding on a building\u2019s CO\u2082 emis\u00adsi\u00adons, ten\u00adants curr\u00adent\u00adly pay bet\u00adween five and 100 per cent of the CO\u2082 levy them\u00adsel\u00adves. Land\u00adlords cover the rema\u00adin\u00adder. In the case of very well-insu\u00adla\u00adted buil\u00addings in effi\u00adci\u00aden\u00adcy class EH55, ten\u00adants bear the full cost themselves.<\/p>\n
The\u00adre are, howe\u00adver, excep\u00adti\u00adons: whe\u00adre govern\u00adment regu\u00adla\u00adti\u00adons effec\u00adtively pre\u00advent ener\u00adgy-effi\u00adci\u00aden\u00adcy refur\u00adbish\u00adment \u2013 for exam\u00adp\u00adle, due to lis\u00adted buil\u00adding sta\u00adtus or con\u00adser\u00adva\u00adti\u00adon are\u00adas \u2013 land\u00adlords are requi\u00adred to con\u00adtri\u00adbu\u00adte less, or not\u00adhing at all, towards the CO\u2082 costs.<\/p>\n
In April 2026, the Fede\u00adral Minis\u00adtry for Eco\u00adno\u00admic Affairs pre\u00adsen\u00adted an eva\u00adlua\u00adti\u00adon report. The fin\u00addings are clear: the ori\u00adgi\u00adnal\u00adly inten\u00added 50\u201350 cost-sha\u00adring arran\u00adge\u00adment bet\u00adween land\u00adlords and ten\u00adants is not being achie\u00adved in prac\u00adti\u00adce. On avera\u00adge, land\u00adlords bear a smal\u00adler share of the cos\u00adts than ten\u00adants. Among other things, the experts recom\u00admend using con\u00adsump\u00adti\u00adon figu\u00adres that are not wea\u00adther-adjus\u00adted when clas\u00adsi\u00adfy\u00ading buil\u00addings, and taking grea\u00adter account of the reduc\u00adtions in con\u00adsump\u00adti\u00adon that have alre\u00ada\u00addy occur\u00adred as a result of the ener\u00adgy crisis.<\/p>\n
For land\u00adlords, all this means a tan\u00adgi\u00adble increase in workload. The hea\u00adting cost state\u00adment must include details of the building\u2019s ener\u00adgy balan\u00adce and CO\u2082 emis\u00adsi\u00adons. In the case of cen\u00adtral hea\u00adting sys\u00adtems, the land\u00adlord recei\u00adves the fuel bill and uses this to work out how the cos\u00adts are to be shared. In the case of flats with indi\u00advi\u00addu\u00adal hea\u00adting sys\u00adtems, the fuel con\u00adtract is in the tenant\u2019s name. The ten\u00adant must then send the land\u00adlord an invoice for the landlord\u2019s share within twel\u00adve months. The land\u00adlord then has twel\u00adve months to reim\u00adbur\u00adse this amount.<\/p>\n
For non-resi\u00adden\u00adti\u00adal buil\u00addings such as offices or shops, a flat-rate 50\u201350 split curr\u00adent\u00adly still appli\u00ades. A tie\u00adred sys\u00adtem is also to be intro\u00addu\u00adced here.<\/p>\n
In 2026, the pri\u00adce of CO\u2082 will fall within a legal\u00adly regu\u00adla\u00adted ran\u00adge of bet\u00adween 55 and 65 euros per ton\u00adne. From 2028, it is set to be deter\u00admi\u00adned by the mar\u00adket through the Euro\u00adpean Emis\u00adsi\u00adons Tra\u00adding Sche\u00adme. Experts expect a signi\u00adfi\u00adcant rise at that point, with some sce\u00adna\u00adri\u00ados pre\u00addic\u00adting a pri\u00adce of up to 200 euros per ton\u00adne. This will place con\u00adsidera\u00adble finan\u00adcial pres\u00adsu\u00adre on land\u00adlords with fos\u00adsil-fuel hea\u00adting systems.<\/p>\n
Land\u00adlords who are now con\u00adside\u00adring inves\u00adt\u00ading in a new gas or oil hea\u00adting sys\u00adtem, or who wish to review exis\u00adting ten\u00adan\u00adcy agree\u00adments, should be ful\u00adly awa\u00adre of the chan\u00adges to the law. It is advi\u00adsa\u00adble to seek legal or tax advice in order to cor\u00adrect\u00adly assess the spe\u00adci\u00adfic impli\u00adca\u00adti\u00adons in each indi\u00advi\u00addu\u00adal case.<\/p>\n