# Buying an apartment in Germany



## andrey69ch (Apr 17, 2014)

Hello,¨
I am a UK citizen, and I am not a resident in Germany.
I would like to buy-to-let Apartment in Germany (Münich), first to let, and later to retire. Can I do this? 
1) Am I allowed to buy property in Germany, not being a German resident (I am a UK/EU citizen though)?
2) Am I allowed to rent property in Germany, not being a German citizen or resident?
3) If the anwer to the questions above is yes, will I have to pay higher taxes on rental income than German residents have to pay? Any idea how high are the taxes on rental income?
4) Is it a good idea to buy-to-let property in Germany, not being a German resident?
Any opinion / advice is much appreciated.
Thanks in advance.
Andrey


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## Nononymous (Jul 12, 2011)

1. Yes, even if you're not EU.

2. Yes, though to some extent it depends on what you mean by rent. Long-term rental absolutely. Short-term vacation rentals are now being actively discouraged by the authorities in some cities.

3. Don't know.

4. Depends. Unless you feel like hopping on a plane every time the toilet stops up, you'll need to pay a management company to look after the place, which would cut into your profit.

Not sure what "buy-to-let" means - assume you buy it with a mortgage, pay the mortgage with the rental income, and move in yourself after the tenant dies or emigrates (the only two known methods of removing tenants under German law).


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## andrey69ch (Apr 17, 2014)

Thank you for your answers. The only Thing which worries me is what you said in the last sentence. Can't I just terminate the tenancy contract, if I decide to move to the Apartment myself, or if I just Need to use it for some time for me or my Family? I am the owner/Landlord at the end, so I should be able to decide what I do with my property? Is it not so?


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## Nononymous (Jul 12, 2011)

You should do some reading up on German rental laws, which are very much oriented to protecting the tenant. I'm exaggerating for comic effect, but quite literally you almost need to poison your tenants to get rid of them. There is a procedure for forcing tenants out against their will but I imagine it is quite long and painful for the landlord.

I did once see a listing for an apartment that said it was currently rented to pensioners, and that it was a good source of investment income that one could *eventually* move into. The implication was clear.


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## Nononymous (Jul 12, 2011)

Clarification:

If you buy an apartment that's already rented, it is difficult to remove the existing tenants.

If you buy an empty apartment and then rent it out yourself, you could negotiate the length of the rental agreement. But even then you'd need to be careful.


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## andrey69ch (Apr 17, 2014)

It is rather strange, I thought that there should be a notice period, whatever it is, and it is on purpose, so that both the Landlord and the tenant can terminate the contract.
I was once in a Situation in Germany, when I subrented a room in the Apartment, and the main tenant could not pay his rent, and even though I paid my rent to him, the Landlord terminated the contract with the main tenant and I ad to move out against my will, on a rather short notice. I know it was a very particular Situation, but I did not feel like well protected as a tenant then.


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## Nononymous (Jul 12, 2011)

Were you a fully legal sub-tenant, with a contract? A strange situation though you can see it from the landlord's point of view - he's presumably not in the business of renting individual rooms. Non-payment of rent is certainly reason to evict, though even then I believe it can take some time. 

Anyway, if you were planning to buy a flat already occupied with the intention of moving in, you should do some research into German rental laws!


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## andrey69ch (Apr 17, 2014)

no, i was planning to buy an new flat, and letting it out (that si what is called buy-to-let), but then i did not know that it would be problematic to evict the tenant


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## Nononymous (Jul 12, 2011)

andrey69ch said:


> no, i was planning to buy an new flat, and letting it out (that si what is called buy-to-let), but then i did not know that it would be problematic to evict the tenant


It might be. You'd need to be fairly careful and research the rental laws carefully and draw up the right sort of contract.


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## beppi (Jun 10, 2013)

As non-resident, you pay higher tax than residents. The situation (also with tax agreements between certain countries) is quite complicated and you"ll have to consult a tax consultant (whom you'll need anyway to prepare the yearly tax declaration in German).
It is very difficult to terminate a tenant in Germany. Basically, you need a good (and legally valid) reason. Non-payment of rent and needing the place for your own residential use are the only applicable reasons in your case, but the process can take many months (minimum 3 - 6) and cost quite a bit of money. In addition, if you piss off your tenant it is likely the apartment will not be left in good shape and you"ll need a renovation, too.
As for your previous subtenancy situation, the landlord could remove you because you didn't have a contract with him. You could have sued the main tenant for breach of contract (even though it may not have been his fault) and gotten quite a bit of damages out of him. (I personally think it shows good character that you didn"t, but legally you could have.)


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