The main items of additional expenses are the tax on transfer of ownership, notary services, broker services, and (optionally) property management expenses.
1. Property acquisition tax. After purchasing the property, the buyer pays a share of the value of the object at a time. This share varies from 3.5% to 6.5% depending on the federal state of Germany. What share is charged in different lands, you can look at the map.
2. Commission broker. This amount depends on the broker, on the federal land and on the value of the object. As a rule, the broker’s services include transaction support - this is especially important if the buyer is a foreigner and does not speak German. This includes consultations, peer review and paperwork. The commission is on average from 3.5% to 7.1%.
3. Notary services. This includes the execution and certification of documents necessary for the transaction: this is a contract of sale, transfer of ownership, changes in the land register, etc. Usually, the broker coordinates the work with the notary, ensuring complete and correct paperwork. Notary services cost 1-1.5% of the value of the object.
4. The cost of property management. If the buyer purchases commercial real estate or plans to lease the living space, the competent management of the property greatly affects its profitability. This is especially true of foreign investors who buy real estate in Germany and are not always present in the country. Today, companies offer asset management of any type. As a rule, it costs from 25 euros per month for the object. What is property trust management, you can see here.
Dominart Invest provides services for the acquisition of real estate in Germany for more than 10 years. You can read more about them here. We will be happy to answer all your questions in our chat or at kontakt@dominartinvest.com.
