Holiday home in Germany

17 posts in this topic

Posted

So... having moved back to the UK from Germany in the spring, I am thinking about investing in a holiday property somewhere in the north of Germany.

I have seen a few places which look eminently affordable, nothing flash but nice enough for a holiday.

What I am curious about is what annual costs I should expect, before I decide on how seriously to investigate the whole shebang.

I was lucky enough that almost all my utilities in Germany were dealt with by a relocation agent, so the only thing I had experience of setting up was contents insurance - which wasn't too difficult and was about the same price as I'd have expected in the UK.

So... A few questions! What are the annual taxes like for rubbish collection? Would I need to be registered as a German resident to buy a house? Is there a local residence tax separate to refuse collection charges? Assuming I maintain only 20 days or so per year in Germany I wouldn't be tax resident so if I chose to rent out the property how would the rental income be treated for tax purposes?

Any help that anyone could give would be greatly appreciated!

0

Share this post


Link to post
Share on other sites

Posted

I would also like to know about these things as i am about to buy am apt in Germany, anyone that know could you pls post? thanks

0

Share this post


Link to post
Share on other sites

Posted

Have you two tried searching via the box at the top right of this page? I thought not.

-2

Share this post


Link to post
Share on other sites

Posted

It remains a moot point if there is any value in buying property in Germany unless for long term investment (>10years)

0

Share this post


Link to post
Share on other sites

Posted

It remains a moot point if there is any value in buying property in Germany unless for long term investment (>10years)

Good point.

I wonder also whether it's worth buying a property to live in for just 20 days of the year. Would probably be much cheaper to stay in a hotel for that short period of time every year.

Add to the total costs the annual insurance of the building and the maintenance costs of same.

0

Share this post


Link to post
Share on other sites

Posted

The initial costs of buying a property (can be up to 10% of the purchase cost) are a serious non-recoverable load on the "investment", notwithstanding running costs such as maintenance costs (especially for an older property), and general running costs, even if empty, more if occupied. Property in many areas of Germany have barely increased in value, even over 20 years, so it's not like you are making money on the bricks and mortar element as has been the case in many other countries in the same period (UK to name but one).

0

Share this post


Link to post
Share on other sites

Posted

Have you two tried searching via the box at the top right of this page? I thought not.

I did, there wasn't directly relevant that I found.

Panda Munich's reply was helpful, thank-you.

0

Share this post


Link to post
Share on other sites

Posted

djbobbins, have you ever heard of the Sommerfrische? It's a German expression for summer relaxation for city dwellers.Here in NA we call it bed and breakfast.It is a private deal when some one has extra space they rent it out like a hotel but you are the only customer.You can explore the countryside, eat in restaurants (some places also have light cooking with it), you have personal connections to locals and no headache with Behoerden. Your holiday will be blissful and if you don't like it you always can move on.

Try this country, you will like it.

http://www.das-passauer-land.de/html/politik-fluesse-das-passauer-l.html

-1

Share this post


Link to post
Share on other sites

Posted

If you do have spare cash IMO its better to have a property anywhere,(no mortgage though) cash in the bank is not doing anyone any good, it also depends where you buy in Germany or anywhere in the world.

I brought an apt in Bad Homburg right in town (which I plan to stay 4 - 5 mts of the yr) I could NEVER afford to buy a place this cheap in Australia, no matter which city AND yes its has to be long term, one doesn't buy an investment property unless its long term anyway.

I will try and rent it furnished for the rest of the months i am not there, from what i see it doesn't seem to be a problem..

You don't pay tax in Germany unless you earn, i believe over 8k per yr, i could be mistaken, if someone can enlighten me i would appreciate it.

If i rent for 6mts i would only get about 6k per yr, i suppose i would need some advice on this, going to hope into the other chat..

0

Share this post


Link to post
Share on other sites

Posted

why can't i edit my post, i meant to put Hop not hope :rolleyes:

0

Share this post


Link to post
Share on other sites

Posted

You don't pay tax in Germany unless you earn, i believe over 8k per yr, i could be mistaken, if someone can enlighten me i would appreciate it.

If i rent for 6mts i would only get about 6k per yr, i suppose i would need some advice on this, going to hope into the other chat..

No.

If you are not resident in Germany (= if you don't have unlimited tax liability in Germany) then you don't get that 8,004€ allowance.

For details see Rental income calculation - For foreigners.

0

Share this post


Link to post
Share on other sites

Posted

Thanks Panda. I might have to make myself a resident of Germany, as of now i am resident of nowhere, Australia just made me a no-resident because i have not lived there for more then 183days per yr, not a resident in Indonesia as i have only ever come in as a tourist for the last 14yrs don't want to be resident of Indonesia anyway, so will see how if this works if i can even make myself resident of Germany if i am not there full time?

Would say i am in limo right now :rolleyes:

0

Share this post


Link to post
Share on other sites

Posted

Germany doesn't define residency by the 183 rule (those 183 days are here only important if you're an employee who works for a non-German company in Germany).

As soon as you register at the Bürgeramt, you will be considered resident, and when you de-register there because you will be leaving the country for good, you will be considered non-resident again.

However, residency in Germany comes with some pitfalls.

You have to have accepted health insurance, if you don't they will backcharge you back to the day you registered.

This accepted health insurance can either be:

As a resident you will also have to declare your worldwide income in Germany in your tax return (tax year is the calendar year, you submit until 31. May).

0

Share this post


Link to post
Share on other sites

Posted

I wonder if a Non-EU , Non resident wants to buy a property in Germany (house/apartment) , will that allow him to get some sort of residency? Will this person be able to get a work permit without having a job offer based on the fact that he owns a property and pays taxes?

0

Share this post


Link to post
Share on other sites

Posted

I don't think so.

0

Share this post


Link to post
Share on other sites

Posted

I wonder if a Non-EU , Non resident wants to buy a property in Germany (house/apartment) , will that allow him to get some sort of residency? Will this person be able to get a work permit without having a job offer based on the fact that he owns a property and pays taxes?

No, sorry.

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now