What
to Consider Before Buying Property In Germany
The
German property market is quite unusual in
Europe - not only do more than 50% of the population live
in rented accommodation, but around 75% of German residential
property has been built since World War II. (Good old Adolf.
He certainly knew how to throw a party...).
This means that in many areas there is no old housing
suitable for buying cheaply and renovating.
Although
prices are rising in Germany, if buying a modern property
you should not expect unrealistic price growth and should
also consider that Germany charges Capital Gains Tax
on profits from property sales (with some exclusions).
In summary, German property is better looked at as a long-term
investment or second home, not as a short-term project.
Glossary of Key German
Terms
Grundwerbesteuer - Property Transfer Tax
(note this is higher in Berlin than in the rest of the Germany)
Notar - Notary Public - publicly-appointed
solicitor who conducts and registers property sales
