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