# Shared Ownership of Apartment in Germany



## Nawroz (9 mo ago)

Hello all,

I am an Australian citizen and I want to purchase fifty percent of an apartment in Germany, the other half to belong to a cousin with Canadian papers. Is this possible at all? The purchase is to be outright and without any bank loans.

I would appreciate it if someone could explain the steps to me in detail as to what is required.

Do both shareholders need to reside in Germany temporarily to open a bank account?

The target apartment is worth 250000 euros. how much tax and interest is applicable in this purchase 

is it important at all as to how the money is transferred to that account from overseas?

Regards,


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## Nawroz (9 mo ago)

And Also, if I was to rent it out, what are the tax law regarding rental income?


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## *Sunshine* (Mar 13, 2016)

Although there are not any restrictions at the moment, there are talks about making it more difficult for foreign investors to buy property in Germany. 

There was also a referendum last year in Berlin about appropriating properties, although I'm not convinced that what the populists want to do will pass legal scrutiny. 

Overall I think you are asking the wrong questions. Before you even consider buying to rent, you need to research German rental laws and "Mietnomaden".


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## fosflor (8 mo ago)

Sorry for the late reply. I'm new to this forum.

As far as I know, there are currently no restrictions on real estate ownership for foreign nationals. The paperwork could be a challenge, though. A notary public (Notar) will guide you through the whole process, including registering the property in your name (Grundbucheintrag). 

Property purchase tax (Grunderwerbsteuer) is between 3.5% and 6.5%, depending on the state. On top of that, you pay the notary public and the
land registry authority (Grundbuchamt). In total, that can be up to 12% of the purchase price. 

You will also have to pay quarterly property tax (Grundsteuer) for as long as you own the property. The tax rate depends on the municipality. In general, it's ridiculously cheap, at least compared to where I live (in Canada). On the other hand, utilities are very expensive in Germany.

A bank account in the EU will definitely make the transaction easier and cheaper, but I don't think it's impossible to pay from overseas.

I recommend you get in touch with a local real estate agent who is experienced with expats. They may even be able to help with the paperwork, which is bound to be in legalese German.


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## *Sunshine* (Mar 13, 2016)

fosflor said:


> You will also have to pay quarterly property tax (Grundsteuer) for as long as you own the property. The tax rate depends on the municipality. In general, it's ridiculously cheap


Germany's Constitutional Court ruled that the current system is unconstitutional and the entire system is being reformed. Many homeowners will be paying increased property taxes from 2025.









Reform der Grundsteuer - Bundesfinanzministerium - Themen


Zum 1. Januar 2025 wird die neue Grundsteuer als unbürokratische, faire und verfassungsfeste Regelung in Kraft treten. Damit verliert der Einheitswert als Berechnungsgrundlage seine Gültigkeit. Die Mehrzahl der Bundesländer folgt bei der Reform dem Bundesmodell.




www.bundesfinanzministerium.de


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## fosflor (8 mo ago)

That's true. But they are not going to significantly increase the taxes for the average homeowner.

I pay about €3400 in property taxes per year for my house in Quebec (Canada) and about €360 per year for my house in Hessen (Germany). Both are single-family homes of similar market value.


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