Investments in Germany

Demand of foreign investors considerably increases in connection with a raising of the prices in the other ends of the world, and in Germany all of them at attractively low level. The profit on investments from 7 to 10 % is quite real, however isn't changeable because of a conjuncture of the market of real estate.

Rating: 5 stars.

Euro:

Steady currency in relation to the American $ and the adhered currencies. Cost of accommodation in the general plan is lower than other EU countries, especially in rural districts.

Economic situation:

The number of new buildings under construction annually decreased for the last seven years and is record-breaking low for all history, and it leads rent increase in those areas where few apartments in the housing market. Restoration of old buildings and possession of them, as a rent property, or their sale as apartments in an apartment house can be very expedient in view of small quantity of new buildings.

Tax on the Income of the Gain of the Capital (NDPK):

For the individual: profit on sale of private real estate which was in a property within more than 10 years, or from sale of securities which were in possession more than 12 months, are released from a tax. The income of a capital gain of sale of real estate which was used for investments into purchase of other real estate is released from a tax (on opredelyonnykhusloviya). If at property sale the percent from investments is less, than 1 %, then too falls under release from a tax. If the percent from a contribution is higher than 1 %, then the tax is subject to payment from 50 % of profit. For the company: standard norm of a tax for the company - 25 %. The income of a capital gain at sale of real estate which is invested within 4 years in purchase of other real estate, is released from a tax (on opredelyonnykhusloviya). According to tax reform, 95 % of the income of a capital gain from sale of shares in the foreign company are released from a tax. Sale of shares between the German companies is also released from a tax.

Popular Areas for Ivestitsy:

And with the highest rent level Frankfurt, Munich, Stuttgart, Düsseldorf, Hamburg, Cologne are the most attractive. Berlin is very popular among foreign investors, but level of investment risk is much higher, than in other big cities, even it is more than in Dresden and Leipzig. Such cities as, Frankfurt, Munich, Stuttgart and others, above-stated, have quite steady rent, especially in prestigious city quarters.

Range of the Prices:

The real estate having the low price, can appear expensive as demands costs of restoration and often is in rural areas or in old parts of the cities and villages. The choice of location influences the real estate price therefore it should be carefully calculated. Appeal of capital quarters and known tourist objects, and also thanks to climate and other unique features, causes higher prices, than in other regions.

Cost of Services:
Tax on real estate - 3,5 % from the purchase price declared in the contract. The fee to the notary and registration duty - about 2.0 % - 2.3 % from purchase price.