Grünwald, south of Munich
Save trade tax in Grünwald
In 2026 Grünwald in the Isar valley applies a trade tax multiplier (Hebesatz) of 240 percent; the City of Munich applies 490 percent. This page explains what the gap means for a business with a permanent establishment in Grünwald, what the statutory minimum from 2027 changes, and why the place where the business is actually run is what counts.
- Grünwald multiplier 2026
- 240 %
- statutory minimum from 2027
- 280 %
- Munich multiplier 2026
- 490 %
- to central Munich
- 12 km
Multipliers south of Munich
German trade tax (Gewerbesteuer) is a municipal tax. The tax office sets a base amount, and the municipality multiplies it by its own rate, the Hebesatz. That multiplier is the only part of the tax that depends on location. South of Munich, several municipalities with very low multipliers sit side by side, while the city itself charges roughly twice as much. Grünwald has kept its 240 percent since 1 January 2004.
| Municipality | Multiplier | Year | Bar chart | From 2027 |
|---|---|---|---|---|
| Grünwald | 240 % | 2026 | at least 280 % | |
| Baierbrunn | 230 % | 2025 | at least 280 % | |
| Straßlach-Dingharting | 250 % | 2025 | at least 280 % | |
| Oberhaching | 250 % | 2025 | at least 280 % | |
| Taufkirchen | 250 % | 2025 | at least 280 % | |
| Pullach im Isartal | 260 % | 2025 | at least 280 % | |
| Munich | 490 % | 2026 | not affected |
Sources: Grünwald 240 % (IHK Munich, 2026), Munich 490 % (DIHK multiplier survey 2026, as of 1 July 2026). Neighbouring municipalities: analysis by the Munich and Upper Bavaria Chamber of Commerce (IHK) for 2025, published 25 August 2026; no more recent official figures were available at the time of writing. Column "from 2027": statutory minimum under section 16 (4) of the Trade Tax Act (GewStG); no municipal resolutions for 2027 were known. As of 11 November 2026. More cities (in German): Gewerbesteuersätze im Überblick.
From 2027: a minimum multiplier of 280 percent
The Act of 29 June 2026 (Federal Law Gazette 2026 I No. 197) raised the floor in section 16 (4) GewStG from 200 to 280 percent, effective from the 2027 assessment period. Municipalities below that level will charge at least 280 percent, even if their own bylaws still state a lower figure.
What changes
- With unchanged trade income, the tax for an establishment in Grünwald rises by one sixth, from 240 to at least 280 percent.
- The gap to the immediate neighbours disappears: Baierbrunn, Pullach, Straßlach-Dingharting, Oberhaching and Taufkirchen will also be at 280 percent or more.
- Prepayments for 2027 are assessed at the new multiplier. Cash-flow planning should reflect this.
- Whether the floor stays at 280 percent is open. In September 2026 the Bundesrat called for a minimum of 300 percent.
What stays the same
- The wide gap to the city: Munich charges 490 percent, 210 percentage points above the new minimum.
- The calculation rules: base rate of 3.5 percent, an allowance of 24,500 euros for sole traders and partnerships, and the credit against income tax under section 35 of the Income Tax Act (EStG).
- The principle that the multiplier of the municipality where the establishment actually is applies.
- Everything that makes Grünwald attractive regardless of tax: setting, surroundings and connections.
Worked example: a GmbH with 250,000 euros trade income
A simplified calculation shows the difference in euros. It rests entirely on the assumptions listed and is no substitute for a calculation for your own business.
Assumptions
- Legal form GmbH (German limited company): no allowance, no credit against income tax.
- Trade income of 250,000 euros, i.e. profit after add-backs and deductions, identical in every scenario.
- Exactly one permanent establishment, located in the municipality named; no apportionment between municipalities.
- Base rate of 3.5 percent under section 11 GewStG.
- Multipliers: Munich 490 percent, Grünwald 240 percent (both 2026), Grünwald from 2027 at the statutory minimum of 280 percent.
- Not included: corporate income tax, solidarity surcharge, rent, relocation and other costs of an actual move.
Simplified example
- Trade income
- €250,000
- × base rate 3.5 %
- €8,750
| Location | Multiplier | Trade tax | less than Munich |
|---|---|---|---|
| Munich2026 multiplier, reference | 490 % | €42,875 | Reference |
| Grünwald 20262026 multiplier | 240 % | €21,000 | €21,875 |
| Grünwald from 2027statutory minimum; municipal resolution still open | 280 % | €24,500 | €18,375 |
Rounded to whole euros. Trade tax = base amount × multiplier.
For sole traders and partnerships the picture is different. The 24,500 euro allowance reduces trade income, and trade tax is credited against income tax up to four times the base amount (section 35 EStG). The benefit of a low multiplier is then usually much smaller. To run your own figures, use the trade tax calculator on gewerbe-steuer-sparen.de (in German).
Grünwald and the area south of Munich
A low multiplier alone does not make a good location. Grünwald has qualities that speak for it even without the tax advantage.
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In the Isar valley
Grünwald lies about twelve kilometres south of central Munich on the high eastern bank of the Isar, framed by woodland and river landscape. The municipality belongs to the district of Munich and has around 11,000 residents.
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Getting there
Tram line 25 links Grünwald with central Munich in about 40 minutes; by car it takes around 20 minutes. The Grünwald bridge leads towards the motorway to Garmisch-Partenkirchen, Oberhaching towards the motorway to Salzburg. Nearby suburban rail stations: Höllriegelskreuth (S7) and Deisenhofen (S3).
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Local business
Several thousand companies are registered in Grünwald, mainly in consulting and services, along with finance and holding companies. The film studios in Geiselgasteig have shaped the area for decades. Trade tax is the municipality's most important source of revenue.
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Everyday life
The village centre offers doctors, pharmacies, banks, trades, specialist shops and restaurants. A primary school, a grammar school, nurseries and kindergartens are in the village. A municipal leisure park with indoor pool and climbing facility, the Isar meadows and several golf courses nearby complete the picture.
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The neighbours
Pullach, Baierbrunn, Straßlach-Dingharting, Oberhaching and Taufkirchen form a belt of low multipliers together with Grünwald. According to the IHK analysis, the district of Munich had the lowest district average in Upper Bavaria in 2025, at 303 percent.
What counts for tax: a real permanent establishment
Trade tax is levied by the municipality in which a business maintains a permanent establishment (section 4 GewStG). A permanent establishment is any fixed place of business that serves the business, expressly including the place of management (sections 10 and 12 of the Fiscal Code, AO). A registered address or a letterhead is not enough. To benefit from Grünwald's multiplier, the business has to be run from here.
If management and staff stay where they were, the permanent establishment stays there too, and the trade tax keeps going to the previous municipality. Where a business has establishments in several municipalities, the base amount is usually split according to payroll (sections 28 et seq. GewStG). Whether a move pays off should be checked with a tax adviser beforehand.
Questions tax offices and municipalities typically ask
- Where does management take its decisions, and where does it work on an ordinary day?
- Are there premises at the company's disposal, and are they actually used?
- Where do employees work, and which place of work is stated in their contracts?
- Where are records and accounting kept, and where do mail and invoices go?
Further reading on gewerbe-steuer-sparen.de
Detailed articles on the topics of this page, with sources and regularly updated. The articles are in German.
- Trade tax calculator Enter your own figures and compare the burden with Grünwald, for 2026 or from 2027.
- Multipliers at a glance 2026 multipliers of selected cities and municipalities, with sources.
- Minimum multiplier 2027: a checklist for businesses Prepayments, liquidity, tax credit and permanent establishment: what to check now.
- IHK: eight municipalities in the Munich district must raise rates in 2027 The 2025 multipliers in the district and who is affected by the new minimum.
- What is a permanent establishment? The term in trade tax law, its features and its limits.
- Moving the registered office: what the tax office checks Registered office, place of management and permanent establishment compared.
- Checking the multiplier before choosing a location Five points to clarify before a business relocates.
- A portrait of Grünwald The municipality as a place to live and do business in the Isar valley.
Frequently asked questions
What is the trade tax multiplier in Grünwald?
In 2026 it is 240 percent, a level the municipality has kept since 1 January 2004. From the 2027 assessment period, a nationwide minimum of 280 percent applies. By mid-November 2026 Grünwald had not passed its own resolution for 2027; without one, the statutory rate applies.
How much trade tax does a GmbH save in Grünwald compared with Munich?
For every 100,000 euros of trade income the base amount is 3,500 euros. At 490 percent in Munich that gives 17,150 euros, at 240 percent in Grünwald 8,400 euros, which is 8,750 euros less. From 2027, at 280 percent, it is 9,800 euros, or 7,350 euros less than in Munich. This assumes a genuine permanent establishment in Grünwald.
Is a business address in Grünwald enough to pay trade tax there?
No. What matters is where the business maintains a permanent establishment, in particular where management is actually exercised (section 4 GewStG, sections 10 and 12 AO). If the business continues to be run from somewhere else, that municipality collects the trade tax at its own multiplier.
What does the 280 percent minimum change for Grünwald?
At 240 percent Grünwald is below the new floor and will charge at least 280 percent from 2027. With unchanged trade income the tax rises by one sixth. The gap to Munich remains large, while the gap to neighbouring municipalities with similarly low rates largely disappears, since they too will be at 280 percent or more.
Is Grünwald worthwhile for sole traders and partnerships too?
The benefit is usually smaller than for a GmbH. Sole traders and partnerships have an allowance of 24,500 euros and credit trade tax against income tax up to four times the base amount (section 35 EStG). Up to a multiplier of about 400 percent the trade tax can be largely offset this way, provided enough income tax is payable.
Do freelancers in Grünwald pay trade tax?
Members of the liberal professions under section 18 EStG, such as doctors, lawyers or architects, are not subject to trade tax, so the multiplier does not matter to them. It is different if the work is done through a GmbH: corporations are always liable to trade tax.
Which neighbouring municipalities have similarly low multipliers?
According to the IHK analysis for 2025, Baierbrunn is at 230 percent, Straßlach-Dingharting, Oberhaching and Taufkirchen at 250 percent and Pullach im Isartal at 260 percent. All of them are below the new minimum and will also charge at least 280 percent from 2027.
What applies if a business operates in both Grünwald and Munich?
Then there are two permanent establishments, and the base amount is apportioned, usually in proportion to the wages paid at each location (sections 28 and 29 GewStG). Each municipality applies its own multiplier to its share, so the Grünwald rate only applies to the portion attributed to the establishment in Grünwald.
Run the numbers for your own case
Whether a location in Grünwald pays off for your business depends on income, legal form, staff and costs. On gewerbe-steuer-sparen.de you will find the calculator, current multipliers and ongoing articles on trade tax (in German).
Go to gewerbe-steuer-sparen.de Trade tax calculator (German)