Costs when buying real estate in Germany

Costs when buying real estate in Germany

Purchasing real estate in Germany will entail the following costs:

  • payment for the object itself,
  • payment for notary services in the amount of 1% to 1.5% of the cost of the object,
  • payment of land tax from 3.5% to 5% of the value of the object (the amount of tax depends on the federal state where the object is located),
  • commission to the agency (may vary depending on the value of the object from 3 to 6%).

As a result, the amount that needs to be added to the nominal value is about 10% of the value of the object.

Costs of maintaining real estate in Germany

What costs does maintaining real estate in Germany entail? The main costs of maintaining housing in Germany are: payment of the annual tax, which ranges from 0.8 to 1.5% per year of the value of the property. The amount of this tax depends on the location of your property.

Also, if no one lives in your apartment or house, you need to pay for utilities according to the meter. When you purchase a commercial rental property, you have the same expenses, except that utilities are generally paid by the tenant. You are responsible for paying for major repairs: construction in Germany is of high quality, so repairs are rarely required.

If you buy a rental business, your expenses will include paying the management company. This is 3-5% per year of the amount of rental payments, sometimes the owner pays for garbage collection and building insurance, but these amounts are not so significant.

Utility costs in Germany

Electricity. Most apartments in Germany are equipped with electricity meters, so the property owner bears costs based on the amount of electricity consumed. Payment is usually made every month (in some cases every two months) by bank transfer.

The homeowner has the right to choose a service provider in Germany based on the benefits of tariff plans. To change the company, the contract must be re-signed. The contract, in most cases, is for a minimum of one year.

Water. In apartment buildings in Germany, the water supply is usually carried out through municipal water works. As with electricity, water consumption is metered. If housing is not equipped with meters, charges are made at the established rate per square meter of living space. Typically, water bills in Germany are paid once every two months.

Heating. The size of heating payments depends on how the living space is heated, whether meters are installed on radiators, and the size of the housing. Some older houses in Germany do not have central heating, and the areas are heated using stoves and heating equipment.

Additional expenses. Additional costs for maintaining real estate include services for wastewater disposal, which is carried out by municipal services, garbage removal, cable or satellite television services, Internet, and maintenance of the infrastructure of the residential complex, if any.

Utility prices in Germany depend on the location of the property, area and type, as we indicated above. As of February 2019, the cost of utilities in Germany for apartments with an area of ​​85 square meters. m, including electricity, water, gas, heating, garbage removal are:

  • Berlin: utilities – €244, Internet and TV package – €31;
  • Dresden: utilities – €232, Internet and TV package – €229;
  • Dusseldorf: utilities – €219, Internet and TV package – €30;
  • Frankfurt am Main: utilities – €235, Internet and TV package – €30;
  • Hamburg: utilities – €251, Internet and TV package – €31;
  • Hannover: utilities – €162, Internet and TV package – €29;
  • Munich: utilities – €223, Internet and TV package – €31.

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