GERMANY REAL ESTATE PROPERTIES
German Real Estate Market
After more than four years of strong house price rises, Germany's housing market remains very strong. In a country where the housing market has historically been extraordinarily stable, this is a significant shift.
The reasons? decade-long economic growth, more than 1 million refugees, high work-related immigration, record-low unemployment, weak construction supply and low interest rates.
The German hedonic price index rose by 9.01% (7.6% inflation-adjusted) in May 2019 from a year earlier (hedonic indices attempt to compare like-for-like exactly, so are the best measure of house price trends), based on Eurospace figures. It was the highest growth since December 2016.
Roundtrip transaction costs are low to moderate at around 9.02% to 16.34% of the total price. Real estate transfer tax is levied at 3.5% to 6.5%, depending on the federal state where the property is located. Real estate agent's fee is negotiable from 3% to 6%, plus 19% VAT.
International Real Estate Investment in Germany
A foreigner can legally buy and operate real estate in Germany, which, for many years, has always been a real estate option for an investor who wants to diversify his portfolio and enjoy a favourable economic trend.
The real estate market in Germany is favourable for transactions and investments for several reasons:
- A transparent and open system.
- The law is in favour of the owners and protects them.
- A foreigner can become owner in Germany.
- Taxation is favourable.
Our team of experts in Germany are always ready to help you facilitate the process from your home country (visa, opening of bank account, buying your own real estate properties, etc.)
The EU and the United States signed an agreement, allowing to avoid the double taxation.
Before Purchasing a Property
In order to have a clear definition of your project and meet your goal, it is necessary to process as follow:
1. DEFINITION OF YOUR OBJECTIVES
Before any process or research, it is necessary to define tangible objectives for your future investment: a rental profitability or an appreciation of your property, etc. We help on market specifics.
After Defining your budget, our team in Croatia will make available all the best properties that meet budget and your goal.
3. INVESTMENT STRUCTURE
Registration of your company within 72 hrs. until ID Tax number id provided by the Croatian tax authorities.
4. BANK ACCOUNT
Following the creation of your company, the next most important step is to open a bank account for all the transactions related to your investment: rent payments, property tax payments, etc. The opening of your account can be carried out remotely by our Croatian team on presentation of your credentials and registration of your company in Croatia. You will have access to an online bank and will be the sole owner and manager of your account.
Purchasing a Property
Besides the definition of your project and the creation of your company, our German Team will support you in the research, negotiation and acquisition of your real estate property.
1. PROPERTY RESEARCH
Introductory market study will help outline your research and target opportunities on properties for sale, new or pre-construction. Click below to see our listing.
2. VISIT OF PROPERTY
Our Team will also help you to schedule your stay in Miami in accommodation, travel, property showings, etc. Then, you select the most appropriate property before drafting an offer.
3. OFFER AND DRAFT PURCHASE CONTRACT
After final acceptance, the Purchase Agreement is written according to the rules and laws of Germany and the European Union. A deposit of 10% of the amount is required at the signing of the contract. It will be blocked on the Escrow Account of the Title Company in charge of necessary investigations. 4. SIGNATURE AND “CLOSING DISCLOSURE”
After due process, Contract is signed and the balance and other fees shall be paid. Agency and Notary Fees: 1.5-5% of the amount
Our German Agents and Representatives are always here to assist our prospective international investors to meet their needs. We give our clients a full representation and bring them all the tools needed to realize their real estate investment safely.When investing in Germany, our priority is to make sure that this investment is protected as well as the investors under the Laws of Germany and the European Union. Having a legal structure in place will be beneficial in many ways: 1) Better Tax Optimization, 2) Privacy and 3) Liability.