German quality and the brand “Made in Germany” are known all over the world, all this also applies to the German real estate market.
If you want to invest in your stability and be sure of the fundamentals of your investment, then German real estate is what you need.
Germany stands out against the background of developed countries with a stable, competitive economy, which has repeatedly proved its efficiency. Low inflation, cheap mortgages, working laws, high social security of the population, free education, one of the best healthcare systems.
The country is an undisputed leader of the EU. All these facts attract and interest investors from many countries.
Yes, according to the legislation, non-residents can buy real estate in Germany without any restrictions, on a par with citizens of the country. In addition, real estate can be purchased on both private and legal entities.
Is it possible to remotely purchase real estate in Germany and complete the transaction without leaving the country of residence?
Yes, it is possible. The scheme of making such a deal is fine-tuned. You shall notarize the power of attorney for the transaction and put an apostille on it at the Ministry of Justice. Further, the power of attorney and the apostille should be translated into German and sent to us for further actions on the search and purchase of an investment-attractive real estate in Germany.
The security and inviolability of private property in Germany are constitutionally prescribed in §94.
The procedure for performing the activities of notaries on the transfer of ownership of real estate has been perfected to the smallest nuances. Over the past half century, not a single illegal transaction has been recorded in Germany.
It is also worth noting that the acquired real estate, the land in Germany will be in the personal ownership of the buyer.
Considering all the above facts, you can be confident in the reliability of any period of the transaction for the acquisition of real estate in Germany, as well as in the reliability of your investment.
Buying real estate in Germany does not give you the right to obtain a residence permit, but when considering an application for a residence permit in Germany, your own real estate in Germany will be a significant plus.
How do I get a residence permit in Germany (German residence permit)?
One of the most reliable and proven ways of obtaining a residence permit with subsequent permanent residence is business emigration.
The tool for solving this issue is - commercial real estate in Germany.
Prime Germany Estate partners with leading, professional companies in the field of commercial real estate investment.
One of the most profitable factors for purchasing real estate in Germany and investing money capital is attracting mortgage loans at a low-interest rate (2-4 *% per annum).
The German economy, in such cases, will work for your well-being.
In fact, in Germany, there is no paragraph prohibiting lending to non-residents of the country and we can say that today German banks provide a mortgage to foreign citizens, both individuals, and legal entities.
Possessing this information, foreign investors can independently engage in the acquisition of real estate with the involvement of mortgage lending, but as a rule, not knowing the nuances of the German banking structure is possible to face a number of obstacles from the banks:
From the banal refusal to open a bank account, to questions about the presence of permanent income in Germany, etc.
In turn, Prime Germany Estate assists in obtaining mortgage loans and we are ready to share the experience with the company's clients.
A mortgage is a rather capacious issue and the possibility of a positive decision on issuing a loan is of a purely individual nature.
In addition to assessing the quality of the object to be lent, an important aspect of a positive decision to lend residential real estate that does not generate income is your ability to pay and the consistency of your income.
Income must significantly exceed the monthly payments on the body of the loan.
In general, we recommend that the solution to the issue of lending, similar to the purchasing of real estate in Germany, be provided to professional, specialized companies.
You do not have to open a German bank account to purchase real estate in Germany.
All necessary payments can be made through the bank of any other country.
After purchasing real estate in Germany and when renting it out, there is a need to open an account in a German bank for a more convenient process of calculating rent, utility bills, and real estate management services.
We assist our clients in opening a German bank account.
You will be able to control your account via on-line banking.
1. notary trust account
2. directly to the owner's account
1. Payment through a notary trust account:
This method is the most preferred for foreign buyers of real estate in Germany. After signing the purchase and sale agreement, the notary opens a special trust account (Notaranderkonto). All monetary transactions in the transaction will take place from this account. Only a notary has access to this account.
On average, the buyer is given up to 4 weeks to deposit the entire value of the property into the trust account, as well as the amount covering additional expenses during the transaction.
After payment for the property has been made, the notary proceeds to pay the remaining bills (land court account, financial service account, etc.) from the trust account.
Funds are transferred to the seller only after all necessary prerequisites for payment have been met:
• payment of all existing debts registered in the land register;
• payment and obtaining the manager’s permission to join the owners’ society (if required);
• entry into the land register of preliminary registration in favor of the buyer (Auflassungsvormerkung);
• payment of all other bills.
2. Payment directly to the owner's account. In this case, the buyer is also protected; payment is made only after the following prerequisites are met:
• payment of all existing debts registered in the land register;
• payment and obtaining the manager’s permission to join the owners’ society (if required);
• entry into the land register of preliminary registration in favor of the buyer (Auflassungsvormerkung);
• payment of all other bills.
After all the prerequisites have been met, the notary issues a notice (Preisf lligkeitsbescheinigung) about the need to transfer the entire value of the property to the owner’s account, and the document also describes all the actions performed on the property.
After the transfer of funds is completed, the preliminary entry in the land register is changed to the final registration of the new owner.
1. Real estate acquisition tax: Grunderwerbsteuer
A one-time tax on the property purchased, the percentage tax rate depends on which federal land the property is located and is 3.5-6.5% of the value of the property
2. Notary services 1-1.5% (excluding VAT) of the property value.
3. Maintenance of a trust account with a notary 0.25% (excluding VAT) of the value of the real estate.
4. Brokerage services range from 3.57% to 7.14% (including VAT) depending on the Federal Land.
5. Making a note about the preliminary registration of the object in the land register, deleting the mark, the final entering of information about the new owner and other legal registration is about 150 euros (excluding VAT).
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