Property investment in Germany for expats, with the rent paying it off

Between 5.5 % and 8.5 % before any agent commission: land transfer tax of 3.5 to 6.5 per cent by state (Sec. 11 GrEStG), plus about 2.0 % for notary and land registry on the GNotKG scale. On 350,000 EUR in Berlin that is 28,000 EUR, in Bavaria 19,250 EUR. Most lenders finance only the flat, so plan these costs from your own account. Some lenders also finance them, and we tell you which.

Ask what my file allows

A new build bought in its completion year, with the contract between 1 October 2023 and 30 September 2029, takes 5 % a year on the falling balance (Sec. 7 (5a) EStG). Everything else runs linear under Sec. 7 (4) EStG, usually 2 %. Only the building depreciates, never the land, so the split in the purchase contract sets your base for the whole holding period. The routes are compared side by side on our page about depreciation (AfA) on German rental property, and the tax side has its own page.

Check which route my flat gets

Past the ten-year line a private sale is free of tax on the gain. Sell earlier and Sec. 23 EStG taxes the gain at your personal rate, with the write-off already claimed added back into it. The ten years run from notarial contract to notarial contract, to the day. Details are on our page about the speculation tax and the 10-year rule. Tell us your timeline and we model both.

Yes, with the right lender. Banks finance the flat itself; the day-one costs usually come from your own account, and some lenders finance those with you as well. What counts is your income, your contract and your SCHUFA record, whatever your nationality. We ask 600+ banks in one go. Details are on our page about mortgages for expats in Germany.

Ask what my file allows

Your passport and residence title, the last three payslips, your employment contract, a SCHUFA record and, for the flat, the exposé, the floor plan, the declaration of division and the last minutes of the owners’ meeting. We collect them once and send one complete file to every lender that fits.

Hausgeld is the monthly charge the owners’ association collects for the building. You pass the running part (heating, water, caretaker, rubbish) on to the tenant with the annual service charge settlement. The management fee and the payment into the reserve fund stay with you, and the model above already carries them at 372.46 EUR a year for management (Sec. 26 II. BV) and 11.50 EUR per square metre a year of upkeep for a new build, 18.62 EUR otherwise (Sec. 28 II. BV).

Two things: the write-off route and the running costs. A new build bought in its completion year takes 5 % declining under Sec. 7 (5a) EStG, which front-loads the relief into the first years; an existing flat runs 2 % linear over 50 years. Upkeep in the model is 11.50 EUR per square metre a year for a new build and 18.62 EUR otherwise. Switch the field under “Change our assumptions” and the calculator updates both.

In a designated tight market a new letting is capped at the local reference rent plus 10 %, and that cap runs to 31 December 2029 (Sec. 556d BGB). With a sitting tenant, increases are limited to 20 % over three years, or 15 % in tight markets (Sec. 558 (3) BGB). The local Mietspiegel carries the figure, and we check it against the exposé before you view.

You can keep the flat and keep letting it from abroad. The rent stays taxable in Germany and one return is filed each year. Past year ten the sale is free of tax on the gain, so we ask about your plans first.

From the first call to the key handover usually takes two to four months. Once your file is complete, the financing confirmation takes days, and you take it to the viewing. After the notary appointment the purchase price falls due when the priority notice is entered in the land register, and your entry as owner follows later. We keep the dates and tell you in English what is due next.

An estate agent or a letting agent from our network, whenever you want one. Many owners let the first tenancy run through the same agent who sold them the flat, and a property manager handles the owners’ association side from day one. The model already includes management at 372.46 EUR a year (Sec. 26 II. BV).

It can be anywhere in Germany. We work Germany-wide by video, and so do the estate agents in our network. Prices and rents per square metre differ sharply by state, so the calculator asks for the state. It has the largest effect on your day-one costs and your rent estimate. Once you have a specific flat, we check its exact location as well.

Tariff Sec. 32a EStG, 2026 year: allowance 12,348 EUR, zones 17,799 / 69,878 / 277,826 EUR. Land transfer tax by state (Sec. 11 GrEStG and the state ordinances); notary and land registry 2.0 % on the GNotKG scale. Write-off: Sec. 7 (4) EStG linear 2.0 %, Sec. 7 (5a) EStG declining 5 % of the residual value, building share 80 %. Upkeep 11.50 EUR per sqm a year for new builds and 18.62 EUR otherwise (Sec. 28 II. BV), management 372.46 EUR a year (Sec. 26 II. BV). Prices and rents per sqm by state: immowelt, 1 August 2026. Social contribution parameters SVBezGrV 2026. Mortgage rates: Bundesbank MFI statistics, reporting month July 2026. Rent regulation Sec. 556d BGB to 31 December 2029, ceiling Sec. 558 (3) BGB, ten-year rule Sec. 23 EStG.

The loan equals the purchase price and the day-one costs come from your own cash. The headline figure assumes no price change at all; the growth field only moves the value and equity figures inside the calculator. Every figure is a model calculation on the 2026 rules and general information — an example, not an offer, and no promise of a return. It is not individual tax advice: your own case belongs with a licensed German tax adviser, and we prepare the file for one.

Written September 2026, last checked 10 September 2026. As insurance brokers we advise on a balanced market analysis and owe you a documented, needs-based recommendation (Secs. 60 and 61 VVG). Permits under Secs. 34c, 34d, 34f and 34i GewO. Register numbers D-QE3R-76N6T-02 (Sec. 34d), D-F-133-UM8A-56 (Sec. 34f), D-W-133-3GFG-14 (Sec. 34i), IHK Hannover. Professional indemnity cover in place. Expat Finance Germany, Sierichstraße 172, 22299 Hamburg. The full version lives here.