Germany
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ENTRY FROM
€1 000 000
TRUSTMONT commercial benchmark
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KEY PRINCIPLE
notarized form + Grundbuch
The right arises upon registration; the Auflassungsvormerkung protects the buyer
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RESIDENCY
Not provided
A purchase of any amount does not constitute grounds for a residence permit
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PAYMENTS
EUR
Cash, cryptocurrency, and valuables are prohibited by law (§16a GwG)
Why Germany
A mature, regulated, and capital-intensive market—ready-to-move-in apartments, income-generating properties, and heritage-protected (Denkmalschutz) projects
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Vormerkung Buyer Protection
An “Auflassungsvormerkung” blocks the seller from disposing of the property until the transfer of title takes place.
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Transparent Land Registry
The registry is maintained by the Grundbuchamt; it is considered highly authoritative.
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Historical Projects
Denkmal-AfA provides accelerated depreciation for verified expenses related to historical monuments.
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Capital Preservation
The market is better suited for conservative investing than for high passive returns.
Types of Real Estate
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Individual
The simplest form; a tax exemption may be available upon sale after the holding period.
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GmbH
For portfolio strategy and the hotel business; separate accounting and reporting.
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Erbbaurecht
Time-Limited Right to Build on Someone Else's Land — Verification of the Term and Conditions for Extension
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Denkmal Project
Renovation subject to preservation regulations—requires approval from the Denkmalschutzbehörde.
Key Locations
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SELECTIVE
Berlin
High liquidity and potential of Altbau, strict rental laws
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CAPITAL PRESERVATION
Munich
High entry costs, low current returns
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SELECTIVE
Frankfurt
Demand in the financial sector, serviced apartments
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SELECTIVE
Hamburg
A stable market with a high-quality historical portfolio
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PRIORITY
Leipzig
Higher potential for returns, Altbau and Denkmal projects
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SELECTIVE
Dresden
Historical collection, requires careful selection
Taxes and Expenses
| Tax | Rate | Comment |
|---|---|---|
| Real Estate Purchase Tax | depends on the federal state | The rate depends on the federal state |
| VAT (USt) | usually exempt | Commercial properties may have an option regarding taxation |
| Property Tax | annually | Under the federal or state model |
| Sale by an Individual | Possible exemption (§23 EStG) | Does not apply automatically to a GmbH or a commercial enterprise |
Purchasing real estate in Germany does not automatically grant a residence permit, permanent residence, or citizenship. Cash, cryptocurrency, and jewelry are prohibited by law for real estate transactions.
How We Help
The full cycle—from candidate selection to closing the deal.
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Property Selection
New construction, rental properties, Altbau, and historic projects tailored to a specific strategy.
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Coordination of the audit
Independent attorneys, notaries, tax consultants, and technical specialists.
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Transaction Support
Monitoring contract performance, preliminary registration, release of liens, and registration of title.
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Post-Purchase Support
Organization of management, communication with WEG, leasing, and reporting
Yields, tax depreciation, and financing terms are not guaranteed and depend on the specific property