GATE Berlin

Investment Strategy on Berlin Property by Gate Berlin

11 Apr 14 - 00:05

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When you think of investments and returns, especially in real estate in Berlin, you also need to factor in the tax incidence. If you sell within 10 years of purchase you pay capital gains tax. If you rent it out and if rental value is between Euro 8.000 to 50.000 you will end up paying income tax as a private person ranging from 1 % to 26 % after allowing deductibles. If you decide founding a company GmbH in Germany for the purpose of buying an apartment block you would only pay around 16% flat tax on rental income. Is that acceptable? If yes, fine go ahead. If you think there has to be a way that most of your earnings from investments do not end up in the taxman’s net then you follow an investment strategy on Berlin property by Gate Berlin. These realtors are professionals with years of experience in offering sound investment advice in real estate to foreign investors besides helping out with other related tasks such as finding renters, managing the estate, tax matters, arranging finance and so on.

You could make the tax pill a little less bitter one to swallow by going in for financing instead of shelling out the entire amount yourself. You put up only 40% and the rest is finances from lenders. You rent out property, claim deductibles on interest, pay tax and monthly mortgage and still have something left over, definitely attractive when you consider you have laid out only 40%. Another smart solution, one that most foreign investors find lucrative, is to give the property a makeover and furnish it fully, letting it out as holiday rental or short term rental by the day or by the week that nets them far higher than regular rentals. Rentals for 100 sq. meter apartments in Mitte can be Euro 3000 a month—more than enough to keep you covered. Get best advice and investment strategy from Gate Berlin and never regret your decision.
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