Real Estate Transfer Tax
Anyone buying real property in Germany becomes subject to real estate transfer tax. The tax also becomes due when you acquire a freehold or condominium because the acquisition makes you part-owner of the property on which your freehold sits. The tax becomes due for payment once the legally effective deed between seller and buyer has been signed. The notary facilitating the acquisition process will notify the inland revenue office of any taxable condominium acquisition. Next, the inland revenue office will calculate the amount of tax due, and charge you accordingly in a written tax note. Once you remitted your real estate transfer tax dues, the office will issue a clearance certificate to you. You will need the certificate to be entered into the land register and thereby become the rightful owner of your condominium.
Until September 2006, the tax rate for the real estate transfer tax was 3.5 percent of the purchase price across Germany. Since then, however, the German states have been at liberty to set their own tax rates, making your tax rate effectively dependent on the state in which you buy property. At the moment, the rates range from 3.5 percent in Bavaria and Saxony to 6.5 percent in Saarland, North Rhine-Westphalia and Schleswig-Holstein.
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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