Berlin’s council passed legislation in early October raising the sales tax (stamp duty) for anyone buying property in the city. As from January 2014, buyers will have to pay a 6% tax on the sales price, up from the current rate of 5%.

At the current sales level the Berlin council estimates next year’s tax hike could bring in an extra €100m a year for the city. However, that is a drop in the ocean for a city that is €63bn in debt, adding just 0.16% towards the rapidly rising interest payments.

When calculated per head Berlin owes €22,000, which is higher than the bankrupt US city of Detroit (€20,000 per head).

Meanwhile, average prices continue to rise each year and now stand at €1,954sqm, up 11.2% from €1,757sqm in 2012, according to the Berliner Morgenpost newspaper.

The number of property sales are rising in the city and last year 53% more flats were taken out of the rental market to be sold than the year before. As a result the city’s income from property sales tax has more than doubled in the last four years, from €300m in 2009 to an estimated €680m in 2013.