The procedure for buying property in Germany
The procedure for buying property in Germany
Germany is known for its stable economy, low interest mortgage rate and is one of the most prosperous countries in the European Union. At the same time, housing prices do not differ overpriced. Acquiring an apartment or house in Germany is a profitable investment.
Before making a purchase, you need to decide on the type of property being acquired. Choose a city should be based not only on desires, but also financial opportunities. If the capital is small, it makes sense to consider options in East Germany.
If there is a sum of 200,000 euros, then you should think about buying a home in Munich. Prices in this city continue to rise, and demand exceeds supply. To select a profitable area, it is better to consult a specialist.
When buying real estate in Germany, a Russian citizen receives visa benefits, as well as a Schengen multivisa, which gives the right to stay in the country for 180 days a year. But to make a purchase transaction make out an entry visa.
Important! The acquisition of housing is not a basis for obtaining a residence permit.
Buying an apartment, like any other real estate, a foreign citizen is obliged to pay utility costs and property tax. In Germany, strictly monitor the payment of these bills. Minor debts can cause a large fine and refusal to provide Schengen. The debt can be entered into the land register and, if the debt is not repaid over time, the apartment / house / land plot can be auctioned off.
Real estate booking is a written agreement confirming the seriousness of the buyer's intentions. Yes, the assignment of the object to the buyer must make an advance payment of at least 500 euros within two weeks.
Important! The agreement can also be without prepayment, but there is no guarantee that the buyer will receive the option he likes.
Preparing for a deal
Even at the time of booking, the agency may request a certificate confirming the buyer's solvency. German sellers prefer help from a local or European bank. Foreigners have no difficulty opening a personal account in a German bank. To open an account, you must specify the address in Germany, where they will send all correspondence. A foreign citizen will be tested for knowledge of German or English at a conversational level.
To make a payment from a Russian account, you must provide documents confirming the purpose of the transfer of funds. This is a contract of sale translated into Russian. Additional documents are welcome: a notary account and a notice of payment in Russian, with full bank details.
After providing the certificate, begin to prepare a notarial contract, for which you need:
- information from the passport;
- place of residence;
- data on marital status.
In Germany, there is a law according to which spouses can buy property only together (both must be present at the conclusion of the transaction).
The buyer should read the contents of the Land Registry, which contains all the data on possible mortgages and debts on loans of past owners. Encumbrance with mortgages can be made there only with the permission of buyers. Otherwise, debts must be removed during the renewal process.
Also, the buyer should be familiar with:
- housing regulations;
- meeting owners ’minutes;
- calculation of utilities.
The buyer transfers the money to the account only after all checks and exclusion of encumbrances with mortgages and loan arrears, so he does not risk anything.
The cost of buying a home
The cost of real estate depends on the area in which it is located. In Munich, you will have to pay from 6,000 to 8,000 euros per square meter; in Berlin - from 3,000 to 5,000 euros per sq.m. The cheapest housing can be purchased in Hanover - from 1 700 to 2 160 Euro per sq.m.
When purchasing property in Germany, you also need to pay taxes on:
- apartment purchase - from 3.5% to 6.5% (size depends on the region);
- services - up to 1.5%;
- registration of a new owner - from 0.5% to 1%;
- real estate commission payment - from 3% to 6% + VAT.
The final value of the property depends on the type of the object itself and the area in which it is located.
Make a deal
The contract becomes legal after its signing by a notary. The seller and the buyer may come to the notary in turn, the presence of both at the same time is optional. Nevertheless, the notary is obliged to read the contract out loud to both parties and answer all additional questions.
After all the nuances are clarified, the buyer and the seller sign the document and receive certified copies of it. Then the notary sends a request to register a new owner. Only after this is the transfer of funds from the buyer's account to the seller’s account.
After receiving the required amount and paying the tax, the notary sends the final application for entry into the rights of the new owner and deletion of all entries in the Land Registry. The full procedure of buying a property and its transfer into ownership takes about 2-4 months, but in each case everything is individual.
As an owner, foreigners have no restrictions on the use of their real estate. It can be used as for their residence, and rent it out. But for this it is necessary to prepare the relevant documents, as in Germany everyone strictly observes the law. Commercial real estate should be used in accordance with the purposes for which it was purchased.