Sale of a property in Russia! How a Russian can sell or buy a property: a house or an apartment in Germany while he is in Russia and does not have the opportunity to travel to Germany?
The easiest way is to carry out the transaction by power of attorney, with the possibility of transferring money to the account of the seller or a trusted person in Europe or Asia.
But what about Russians who don't have an account in a European bank? Or, for example, if your account in Germany was closed or frozen? There are several legal options, one of which we will explain in this article.
If the seller and buyer of the property in Germany are both Russians, payment for the apartment can be made in Russia. Since 2022, the number of people who have emigrated from Russia and want to buy an apartment or house in Germany has increased at least twice. Many customers continue to purchase property in Germany as an investment while in Russia and many are willing to settle the payment for the property in Russia.
You can find out how a remote transaction with real estate in Germany is carried out using a power of attorney by following the link.
How to sell an apartment or house in Germany to a Russian so that the payment is made in Russia?
Let's go through the sales process step by step, taking into account the currency and legal aspects.
Step 1: Granting powers of attorney through a power of attorney Since the seller and buyer are in Russia, they can handle the transaction through a trusted person in Germany. This requires:
- The seller and the buyer must issue notarized powers of attorney for their representatives in Germany. These powers of attorney must be legalized and translated into German.
- The representatives in Germany act on your behalf when concluding the purchase contract.
Alternatively, the contract can also be signed in Russia, followed by an apostille!
Step 2: Appointing a notary in Germany The notary in Germany plays a key role in the process of buying and selling real estate:
- The seller and the buyer (or their representatives) contact the notary, who is responsible for preparing the purchase contract.
- The notary checks the legal status of the property, existing encumbrances ( e.g. mortgages) and the accuracy of the documents.
Step 3: Conclusion of a preliminary purchase contract Preparing a preliminary purchase contract is an important step. This contract records all the essential terms and conditions of the transaction, including the price of the object and the payment terms.
The preliminary contract also states that payment will be made in rubles within certain deadlines to the seller's account in Russia (at the established exchange rate on the day of signing the contract). If the funds are transferred to an escrow account or directly to the seller and both parties document the transaction, the notary transfers the documents for registering the right of ownership to the buyer.
Step 4: Registration of the transaction and transfer of ownership The notary sends the documents to the land registry office to register the new owner of the property. Once registration is completed, ownership is officially transferred to the buyer.
Step 5: Reporting to the tax authorities After completing the transaction, both the seller and the buyer must comply with their tax obligations in Russia and Germany:
- The seller in Germany pays capital gains tax (if the object was sold less than 10 years after purchase).
- The buyer must report to the Russian monetary authorities, as the transaction involves foreign currency operations includes.
Conclusion In order to carry out a real estate transaction between Russians located in Russia, the most important steps are the issuance of powers of attorney, the use of notary services in Germany, as well as the proper organization of currency transfers and tax compliance and legal norms. The use of an escrow account is an important tool that ensures the successful completion of the transaction.
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