A: No, permanent residency in Germany is not a legal requirement for purchasing property in the country. It is sufficient to provide your home address.

A: It is not legally required, but it is recommended to receive legal advice from an expert on German tax law, as every property investor is personally liable for taxation in Germany.

A: It is not necessary to come to Germany for the signing of the purchase contract. However, you will need to enact a power of attorney, nominating someone to act on your behalf. Furthermore, if you finance the purchase with a bank loan, please be aware that some banks require that you come to Germany for the signing of the loan, and most banks want you to present yourself in person at least once.

A: If one of the parties does not speak German, a qualified translator is required to make sure all persons understand the content of the purchasing agreement.

A: Once you’ve selected the property, it typically takes 4-6 weeks to complete the purchase process, though this time can vary greatly depending on the financing. Customers should take this into consideration as well.

A: Our resale team will gladly help you to put the property back on the market, and guide you all through the selling process.

A: It is theoretically possible to finance your purchase through a bank not based in Germany, but it is not easy for several reasons:

• The bank cannot easily use the property as security/collateral.
• The purchase/sale will be subject to German banking laws & regulations (foreign banks need a legal representative in Germany).
• Property valuation will be difficult.

A foreign bank might, however, finance you based on your personal credit rating and financial standing. You can find out more about the entire purchase process here.

A: When buying a property, there will be some additional, one-off costs to be paid in addition to the purchase price of the property. They are calculated as a percentage of the purchase price and consist of three items:

• Notary and land register costs: approx. 2%
• Commission: between 5.95% and 7.14%, if applicable*
• Real estate transfer tax: varies between cities/states (Berlin - 6%; Leipzig - 3.5%)

In total, the additional purchase costs amount to approx. 14% of the purchase price and must usually be paid 2-8 weeks after the purchase.

*Many of the apartments for sale by Ziegert EverEstate are commission-free, saving you a significant amount on the final costs.

A: No, there should be no further costs at all.

• After 10 years, and following the sale of the property, you can cancel the mortgage (following full payment) with a 6-month notice, without incurring extra charges.
• There is no capital gains tax after 10 years.

A: Non-residents of Germany can typically borrow approximately 60% of the purchase price, meaning your share of the equity will be around 40%.

A: Yes, though this will affect your equity and may make it more difficult to take out subsequent loans.

A: High returns given the low risk and volatility of the market. Real estate has continually received positive returns globally, comparable to more risky investment classes such as stocks, as well as exceeding most other asset classes that have a similar risk profile, such as gold, bonds and cash.

A: Real estate has less inherent risk and volatility than stock markets and other assets. Berlin in particular has a track record of stable returns on real estate investment, especially on apartments, though there is always an element of risk in investments.

A: Apartments in Berlin have a 5-year return of 8.4% and a 10-year return of 6.9%, the highest return of all real estate types during this period. This is part of the reason PwC rated Berlin the #1 city for real estate investments in Europe in 2017. Apartments in Leipzig have similarly seen growth of 8% per annum, 2009 – 2017.

Though Berlin has seen strong growth in recent years, this shows no sign of slowing, and there is still huge potential in the market. PwC rated Berlin the #2 city for real estate investments in Europe in 2019, due to its high return track record and potential. Leipzig meanwhile has been voted “European City of the Year 2019” and “Germany’s second most future-oriented city”, showing it also has huge potential.

A: Even though these laws aim at dampening rent, in practical fact they have little effect on the return on investment for property, particularly over the longer term. With property demand showing no sign of decreasing, and supply set at existing levels, any shortfall in rental revenue will be more than made up by the increase in property value.

A: No, buying property in Germany does not automatically entitle you to a residency permit.

A: Rented apartments have a lower entry price, having a lower cost per square metre, and the yield is eventually the same. Additionally, you begin receiving income immediately, and don’t have to spend time searching for a new tenant.

A: If you acquire an apartment in Germany that is already rented, you automatically enter into the existing rental agreement as the new owner. All prior agreements remain in force, only between you as the new owner and the tenant. This means that you have all the rights and obligations arising out of the existing rental agreement.

A: Following signature, the completion of the contract should not exceed 2 weeks. The subsequent entries in the land register and notice on property acquisition tax can take between one month and half a year, but have no effect on your property.

A: Through our rental service partners, we will help you to find a new tenant as quickly and conveniently as possible.