For many Dutch people it is more advantageous to buy their own land in Germany. Some choose to have their own holiday home, but others will actually emigrate. What are the rules and can you actually buy a house in Germany as a Dutch person? Or a holiday home as a second home? We will discuss this and much more in this article. So read on quickly if you want to know more about this. Are you thinking about emigrate to Germany? Then you can use the following information well!
Can you buy a house in Germany?
Due to European Union (EU) legislation, residents of EU member states can simply buy a house in another EU member state. This is also the case in Germany. The high land prices in the Netherlands naturally make it attractive for Dutch people to buy a house in Germany. However, there are of course things you should pay close attention to when buying, because you do not want to just buy a house.
House hunting in Germany
In Germany, it is arranged that real estate is mainly offered by German banks. Furthermore, there are, just like elsewhere in the world, of course also real estate agents who can mediate for you. Please note that you engage a good real estate agent so that you can be helped well in finding and buying a house.
What can a real estate agent in Germany do for you?
In Germany there are about 15,000 real estate agents. Anyone can become a real estate agent, because you only need permission from the government and this is quite easy to obtain, because no professional knowledge is required. However, there are companies and associations that employ trained real estate agents.
Brokerage fees
You will eventually notice that houses in Germany are offered without any address details. This is because the real estate agent in Germany works with proof. This is also called a 'nachweis'. With this proof he must be able to show the buyer that he has offered the house. For this reason they keep all addresses in-house. You will also have to sign the proof so that they can prove that the sale was made by the real estate agent. It does not matter what kind of house it is. These can be holiday homes, but also apartments or single-family homes.
What is the nightly news for?
The 'nachweis' is also needed by the broker to charge the brokerage fee. The German broker does this for the buyer. On average, the amount for this is a lot higher than what we are used to in the Netherlands. We cannot mention the amount, because the costs for this in Germany differ per region. It also concerns a maximum of 6% of the purchase price on which VAT must also be paid by the buyer.
The notary
When the notary wants to draw up the deed of sale, he must consult the 'grundbuch' or land registry. In doing so, he must look carefully at the taxes and/or restrictions that apply to the purchased land. After this, the notary can draw up the purchase agreement. In Germany, this is often done in combination with the transfer of ownership.
The land registry (grundbuch)
In Germany, you are only the real owner of the house when it is registered in the land registry. In Germany, this is a public register where everything is kept. All information that is important for the purchased piece of land is included in this. A buyer can also always request a copy of the 'grundbuch' before purchasing the house. But of course this is only allowed if you are really a potential buyer.
In the land registry you can find all the information about the piece of land, but you can also look at the debts and mortgages on it.
Preliminary purchase contract
In the Netherlands, a financing reservation is always used. This means that if the buyer has not been able to arrange everything by a certain term, the buyer can cancel everything. In Germany, this is not possible and therefore no provisional purchase contracts are used.
Transfer tax
In Germany, the transfer tax is called 'grunderwerbsteuer'. The amount of this varies per region. Of course, it is arranged in the country that both the buyer and seller are liable for tax, but it is almost always the buyer who pays it in full.
Land tax
Land tax, also called 'grundsteuer' in German, must be paid quarterly by homeowners. The amount of this depends on:
- The unit value
- Tax guideline scale
- The levy percentage
The annual land tax
For the annual land tax, the unit value, tax guideline scale and levy percentage are multiplied together and the result is the amount that you have to pay annually for your land tax.
Can you apply for a mortgage in Germany?
Building a house is a big investment. Especially when it is a big house. There are only a few people who can pay for this from their own (savings) money. Fortunately, you can also apply for a mortgage in Germany.
Inform yourself well
In Germany it is wise to get advice about this from the notary. Of course you can also talk to different banks. It is best to get information about this before you start viewing a house. That way not much will stand in your way and you can view all the objects at your leisure.
German banks
It is good to know that in Germany the banks provide a maximum of 80% of the purchase price. Nowadays it is more and more common that banks want to finance 100% of the purchase price.
NB!
Please note that applying for a mortgage in Germany takes much more time than in the Netherlands.
Finally
We have been able to tell you a lot about buying a property in Germany. There are a lot of houses for sale, but it is good to look at which area you want to move to. For example, you might end up in Sauerland while you want to live in Berlin. You don't want that, of course.
Current information
It is wise to keep a close eye on the latest news and your plans and to stay in good contact with a real estate agent or notary. This way you can prevent yourself from running into problems or unnecessary surprises.
Do you have any questions?
Do you have any other questions regarding emigration to Germany? Then you can always read the other articles on our website. Maybe you will find the answers to your questions there.
