Are you a global citizen looking to expand your real estate portfolio? Have you considered moving to a country that offers so much more than low mortgage homes and apartments?
With all things considered, buying real estate in Germany is one of the smartest and most lucrative investments you can make in the year 2019. Statistics show that in most countries across the globe, people tend to swing strongly in favour of either buying their home or renting. However, Germany offers a balance of options, which has lead the country to have the second lowest property rates in all of the European Union.
Since the financial crash a decade back, housing prices in Germany have increased considerably. Even so, experts have noticed that German real estate has stability unlike those seen in other nations in the region. With the country’s European Union membership, high standard of living, quality healthcare industry and premier education system, more and more foreign investors are flocking towards the country in hopes of buying real estate, setting up their business and restarting their life in this great nation.
In this blog, we discuss some of the key points that will help you make the right decision regarding your decision to buy real estate in Germany.
Foreign Real Estate Investment
Over the years, Germany has grown to become the second most popular migration destination in the world. Of all the 27 European Union nations, the country has the second highest percentage of the immigrant population, which was reported as 14.8% of the total German population as of 2017.
With the steady flow of expats into the country over the past 50 years, the country also offers zero restrictions to foreigners buying a property. The country’s law allows a non-residents as well as non-EU nationals to buy real estate in Germany without complicated rules and regulations restricting them.
However, foreign nationals must pay a capital gains tax (abgeltungsteuer) of 25% plus a solidarity charge that applies to all or any property owned for less than 10 years. But this rule attracted expats who looked forward to longer stays within the country, increasing foreign contribution to the country’s economy.
How To Buy German Real Estate
Similar to property markets around the world, real estate in Germany are also sold privately or through a real estate agent (Immobilienmakler). If you are interested in an ongoing project in Germany, you can also contact a real estate developer directly to discuss your requirements.
As Germans typically invest in a property to live in for extended periods, or even for life, the real estate industry operates at a slower pace than in most of the other countries. Even so, the estimated number of households in the country is expected to rise in the future as shown in the graph below from a 2017 study by the Federal Statistical Office of Germany (Statistisches Bundesamt). Buy giving some time for yourself to weigh the different factors tied to properties you are interested in, you can by the best German real estate suitable for your needs.
On finding a suitable property, you will be allowed to make an offer and negotiate with the developer or real estate agent. Once the price and mortgage are finalized, you can choose and appoint an impartial public notary, who will draw up the sales contract. Once the contract is signed, you are required to pay the property sales tax and wait for the property registration to be completed.
While the processes may seem simple, it is best if you buy real estate in Germany through a trusted real estate company. Although the German’s are honest and straightforward about their business, expats or foreign nationals may find it challenging to understand the fine print of their property deals.
Looking to invest in German real estate? Reach out to our experts today.