The Property Banks Buyers Guide to Germany
Capital gains tax is charged at
normal income tax rates on property sold within two years of
purchase.
There are no restrictions on Foreign Ownership.
Former East German states property holds a generally lower value.
Real Estate Prices In Germany
Range Varies, for example:
From around £80,000 / $115,000 plus for a terraced home.
Detached Homes from £140,000 - £600,000 / $200,000 - $875,000and
beyond.
City apartments vary from £300,000 / $440,000 with Munich a premium
Locations to buy property and real estate in Germany
It is popular in Germany to rent. This accounts for over half of the
population. Apartments in the cities and suburbs are popular where
there can be a shortage of housing. At least 75% of German houses
have been built since the Second World War, though you are still
likely to find many lovely traditional village homes in rural areas.
There are many properties in the former East Germany which need
modernisation. Rhine and Mosel valleys are popular for rural
lifestyles.
Living Costs in Germany
Germany enjoys a very high standard of living with fairly low
inflation. The cost of living is higher than some other EU countries
but not very different to that of France and the United Kingdom.
Buying real estate and property in Germany
When you have found your property that you want to buy and agreed a
selling price, a solicitor/lawyer or notary is required to carry out
the legal work and contract obligations, checking that no
liabilities exist.
On completion of the sale of the real estate, the title deeds are
registered with local land registry enabling the title to transfer
to the new owner.
Solicitor / Lawyer
A solicitor/lawyer who specialises in conveyance work would normally
carry out all the legal work on your behalf, a public notary can
also be used when buying real estate.
Fees
You would expect to pay a total around 6-7% of the buying price,
which comprises of the transfer tax of 2% and notary fee of about
1.5%. The Real Estate Agents fees vary up to 5-6% and would
ordinarily be split between the buyer and seller.
Property Tax
Land tax is charged in Germany to cover local services and is rated
usually below the current market value and would be around 1% of the
rateable value. Non-residents are subject to wealth tax on property
owned in Germany of around 0.5%.
Mortgages
You can borrow up to 70% from German banks and building societies
and they would normally expect a proven track record of regular
monthly savings of up to six years before it is approved. The
maximum term would be up to 30 years on a fixed rate of interest.