Figures Associated with Purchasing Property in Germany
Germany is the country with high standards of living and low inflation rates. That is why many people find this country a perfect place for living and making investments. German property is rather costly, so the majority of population prefers renting apartments and houses rather than buying them. Foreign investors see obtainment of German property a profitable pouring of money.
Indeed, half of people leaving in Germany rent property. In this light, being an owner of a house or apartment can bring considerable revenue on monthly basis. There is no difference whether it is an apartment in a big city or a house in the rural area, the advantage is obvious.
Buying property in Germany is a complicated process requiring completion of legal documents and assistance of lawyers and notary. On completion of all proceedings concerning the purchase of real estate, the title deed is registered with local land registry department empowering the title to transfer to the new possessor. To add, you are supposed to pay a total around 6-7 percent of the purchasing cost, which includes the transfer tax of 3.5 percent and notary fee of about 1.5 percent. The fees of real estate managers might vary from 5% to 6% and are generally split between the buyer and vendor.
Purchase of property is liable to tax. Land tax is charged in Germany to meet local services and is rated frequently below the current market cost. Non-residents are liable to wealth tax on real estate owned in Germany of around 0.5 percent.