Berlin Property for Sale
A web resource for UK and Irish buyers looking to invest in Berlin propertyBerlin Property for Sale
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| Tax | ||
| The information below is only intended as a brief guide covering a few key points which are relevant to overseas buy-to-let investors in Berlin. Before considering an investment, in-depth advice should be sought from a qualified tax professional. Income Tax Non resident individuals are subject to taxation on income realised in Germany at a range of rates from 26% to 44%. Income up to around €25,000 per annum is generally taxed at the lower rate. |
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Certain expenses incurred
in connection with the property can be offset against rental income
before income tax is levied. These include loan interest, travel
expenses, management charges and tax adviser charges. Depreciation
can also be offset, typically at 2% of the property value. Practically
this means that the owner of a buy-to-let apartment with say a 70%
mortgage will have little if any liability for income tax on their
rental income until either capital values or yields increase. The German tax year corresponds to the calendar year, with a deadline of 31st May the following year for submission of tax returns. |
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| Capital
Gains Tax Capital Gains tax is levied at relatively high rates but does not apply if the property is owned for more than 10 years. The high purchase costs in Germany also make it unprofitable to hold a property for a period of time less than a few years. |
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