Archive for October, 2009

Legal Position of foreigners owning property in Germany

Thursday, October 29th, 2009

Germany a late entrant in the real estate business is destined for higher plateaux. Though the country is considered as much more technologically advanced than most of its European counterparts, it is the housing segment that requires cosmetic work to bring it back to the forefront of the world’s property stage.

The German government has not imposed harsher limits on the foreign ownership of property in the country. Non-Germans can also buy, own and sell an unrestricted quantity of land and homes. They can also hold property as landlords, and even develop property after satisfying certain simple rules and regulations. Buyers from EU countries have an added advantage of access to residency and labour rights as set out in EU law. The Non-EU investors must consult the local embassy regarding their rights in Germany.

A legal professional is required to carry out all the paper work for the real estate investors. This is because most of the administrative work requires to be executed in German, and despite your best knowledge of the language, you’ll be ill at ease while handling the local authorities.

The Banks are also offering low interest rates on mortgages. Most banks will lend up to 70 per cent of the purchase price, though you will have to fulfill certain conditions. The maximum mortgage terms are 30 years on a rate of fixed interest.

Any property purchase in Germany is susceptible to Property Tax as per different rules of the different regions. However, the rates are not too prohibitive. Even the rental income is chargeable under Income Tax. It’s better that you hire a local solicitor to guide you through the possible tax minefield.

In addition to offering property for sale in different locations in Germany we also have at your disposal a list of other useful tools to help in your decision making when considering buying a property in Germany :

– Buyers Guide – A useful article on the buying process when buying a property in Germany

– Country Guide – A detailed guide to Germany including information on health, economy, business, travel, things to do, excursions and much more

– Locations – A current list of locations that have property for sale in Germany

– Airports – A guide to the main airports in the country, where they are and how to get there

– Attractions – A list of popular tourist attractions

– Estate Agents- a directory of estate agents and a list of real estate agents selling property

– News Articles – A useful resource for learning about the country, what’s happening and useful information

– Shopping – A directory of useful resources to assist in your purchase or travel including; Flights, Accommodations, Car Hire, Mortgages, Holidays, Lawyers and much more.

– Useful Resources – a list of useful resources that you might find of general use.