
Average List Price: 528,997
Currency: euro
Population: 82,164,700
Capital: Berlin
Germany
Real Estate Practices in Germany
German Real Estate Licensing Requirements:
The entrance requirements for a real estate agent are set forth in the German law of the German trade regulation act (Gewerbeordung). No formal education, degree, or certification, is required to become a practitioner.
A practitioner is not bound to one region; they are allowed to market properties throughout the country.
The license itself can be obtained from the Ministry of Trade and Industry. There are no yearly renewal requirements.
Available Housing Types:
Germany has the typical types of housing available including apartments, houses, townhouses, and commercial properties. These are all available for owner occupiers or investors intending to rent out the properties.
German Real Estate Professional Association:
The German real estate professional association is called the IVD Bundesverband. They represent the interests of the service providers in real estate. There are almost 6000 member firms, agents, real estate managers, property appraisers, finance and loan officers, property managers, and many other real estate related occupiers.
Germany Real Estate Commission:
Germany has an agent commission: 2%-6% + VAT (depending on the state).
Financing Options to Foreign Investors looking to purchase in Germany:
Mortgages and financing options are available for foreigner investors/buyers. For investors, the buyer should have at least 40%-50% of the value of the property in equity. For owner occupiers, German banks can provide a loan of up to 70% of the value of the property.
The foreign buyer/investor should be prepared to show the bank enough bank statements to prove that his or her personal income is stable enough that they can afford the loan.
All banks offer these options.
Property Taxes in Germany:
Property tax in Germany is paid annually (can also be paid quarterly). The rate depends on a various amount of factors including the year of construction, size, type of building, and the use of the property.
Acquisition Costs for the Buyer:
Further acquisition costs for the buyer include:
- Property Transfer Tax: 3% - 6% (obligatory, depending on each state)
- Notarization Fee: 1% to 1.5% (obligatory, depending on each state)
* Lawyer Fees: 1% of the purchase price + VAT of 19%
* Please note, a Lawyer is not obligatory, but HIGHLY recommended. When you purchase a property with a well-established agency, they can help you find a suitable lawyer for your case.
Disposition Costs for the Seller:
Depending on the region in Germany, a seller’s commission of between 2-6% + VAT may apply. Capital gain tax also applies upon selling a property in Germany. It varies based on the amount of time the property has been owned, as well as how it was used.
Title Practices in Germany:
Upon notarization of a sales contract, the notary will place a reservation in the land registry on the property. Upon the full purchase price being paid, the title transfer will be done.
Closing Procedures in Germany:
A purchase contract is arranged between both parties and is signed in front of a notary. The property is handed over to the buyer at a later date and the closing procedure is complete.
Additional Information regarding German Real Estate:
Client Relations with German Brokers: When a potential buyer asks for more information on any given property, a German property consultant usually approaches him or her per telephone or e-mail. The consultant will then ask the potential buyer about their purchasing budget, approximate size needs, desired location in the city, and if the property would be used as an investment or for self-use.
The consultant will then match the needs of the client with the ideal property options on hand, and information such as exposes and brochures on the property is then sent to the client via email. Information can readily be found in both German and English (some agencies provide additional languages). The customer experience will of course depend on the quality of the agency. The best thing to do is to look for a full-service multilingual agency that has experience working with foreign buyers.
Bad Friedrichshall / Untergriesheim
Bad Kreuznach / Bad Münster am Stein - Ebernburg
Bad Lauterberg im Harz / Bartolfelde
Bad Marienberg (Westerwald) / Langenbach
Bad Münder am Deister / Eimbeckhausen
Bad Neuenahr-Ahrweiler / Heimersheim
Bad Sooden-Allendorf / Allendorf
Berlin, Konradshöhe (Reinickendorf)
Blankenfelde-Mahlow / Groß Kienitz
Braunschweig / Südstadt-Rautheim
Buchholz in der Nordheide / Holm-Seppensen
Buchholz in der Nordheide / Seppensen
Freiburg im Breisgau / Herdern
Freiburg im Breisgau / St. Georgen
Gemünden (Felda) / Nieder-Gemünden
Gleiszellen-Gleishorbach / Gleishorbach
Hohenkirchen / Hohen Wieschendorf
Karlsdorf-Neuthard / Karlsdorf
Kirchheim unter Teck, Esslingen (Kreis)
Kleinblittersdorf - Auersmacher
Königslutter am Elm / Glentorf
Lautertal (Odenwald) / Reichenbach
Mannheim / Schwetzingerstadt Oststadt
Meschede / Freienohl (Sauerland)
Mörfelden-Walldorf / Mörfelden
Neustadt in Holstein / Pelzerhaken
Oldenburg (Oldenburg) / Bloherfelde
Oldenburg (Oldenburg) / Bürgerfelde
Oldenburg (Oldenburg) / Donnerschwee
Oldenburg (Oldenburg) / Eversten
Oldenburg (Oldenburg) / Kreyenbrück
Oldenburg (Oldenburg) / Osternburg
Prien am Chiemsee / Urschalling
Rheinfelden (Baden) / Degerfelden
Rheinfelden (Baden) / Nordschwaben
Rohr in Niederbayern, Kelheim (Kreis)
Sachsenheim / Kleinsachsenheim
Timmendorfer Strand / Niendorf