If you maintain a second home in addition to your first place of residence, and if you register this second home as such with the registration office, many German municipalities will charge a so-called second-home tax. It does not matter in this context whether your second home is in the same town as your primary place of residence, or how much time you spend in your second home. By contrast, a condominiums acquired as private investment and let to someone else tends to be exempt from the second-home tax because you are not using the flat in your own right.
The basis of assessment for the second-home tax is the annual net rent. The tax calculation for condominiums often uses the local reference rent. The tax rate tends to be around ten percent. While some German towns charge as much as 20 percent, the going tax rate in Berlin is just five percent.
Whether Prior to an Acquisition...
Even ahead of an acquisition, the Accentro Real Estate Encyclopaedia offers interesting facts and decision guidance: We will coach you through the first steps on your path to homeownership. For instance, it provides information on the process flow of a condominium purchase. It will also tell you what sort of documents you need in order to buy property, and where to obtain them.
... or after – Our Real Estate Encyclopaedia Provides the Answers You Need
Once you have bought a property, you may wonder who is going to manage your condo and how. After all, caretaking your property is one of your main obligations as a condominium owner. In addition to numerous tips and suggestions, you will find answers here to many questions involving the property management subject, such as: What does “individual freehold ownership” mean? What exactly do “condominium regulations” govern? And what does the term “condominium fee” imply? In addition, we elaborate subtle differences between terms such as “real estate management” and “corporate real estate management.”
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