EXAMPLE PAGE - REAL ESTATE - SAVILLS - Flipbook - Seite 10
SAVILLS
PURCHASE COSTS
In the acquisition of real estate, notary
fees and court costs (for the Land
Registry) are incurred as well
as Real Estate Transfer Tax; typically,
these are assumed by the purchaser.
Both the notaries and the courts (Land
Registry) are subject to uniform and
transparent fee schedules. These costs
usually amount to approx. 1.5 % of the
purchase price.
The amount of land transfer tax in
Germany depends on the Federal State
and varies between 3.5 and 6.5 % of the
purchase price. The Real Estate Transfer
Tax in Berlin is 6 % of the purchase price.
The real estate fees in Germany is split
equally between the buyer and seller.
Prior to the legislation changes on
December 2020, it was the buyer who
paid the real estate agency fees on
resale properties. In general, buyer’s
brokerage fees now range from 2% to
3% of the purchase price, plus VAT.
B U Y I N G
G U I D E
-
B E R L I N
CAPITAL GAINS TAX
A great feature of the German taxation system is that no
capital gains taxes (CGT) apply on the sale of investment
property by individuals who have owned property for
more than 10 years. If a property is sold by an individual
within the taxable 10 years period, capital gains are
taxed as part of the personal income tax.
If property is sold by a corporate entity, capital gains
are taxed at a rate of approx. 16 % corporate income tax.
Additional German trade tax (up to approx. 17 % of the
capital gains) may often be avoided, e.g. by non-German
companies (subject to certain conditions). CGT may also
be avoided if capital gains are reinvested into other real
estate within a certain timeframe.
WITH THANKS TO…
The conveyancing and tax advice in
this ‘Buying Real Estate in Berlin’
section has been written with the help
of CMS Germany.
To contact CMS Germany, please get
FINANCING OF REAL ESTATE
In order to be able to finance the
purchase price even before the title has
been transferred to the purchaser in the
Land Registry, specific powers of
attorney are usually provided for in
purchase agreements, according to
which it is possible to encumber the
real property with land charges in
favour of the financing banks even at
this early stage and even so the seller of
the property is protected against any
detrimental dispositions.
in touch:
Dr. Matthias Kuss
Partner, Lawyer
+49 30 20360 1606
matthias.kuss@cms-hs.com
REGISTRATION
After payment of the purchase price,
the notary will apply for the
registration of the purchaser as new
owner in the Land Registry. With
registration, the purchaser acquires
ownership of the property. T
*Please note The content of this document should be used only as an introductory guide to the German tax system.
It does not constitute legal advice.
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