Crystal Clear Information Policy

At Berlin Estates we want to give our clients a crystal clear analysis of all their expected purchasing expenses and running expenses so as to help them make a calculated decision based on all possible available information.

Non-German investors usually encounter some unexpected expenses which are considered as obvious and standard to German investors. Our aim is to give this extra information to our clients and help them avoid the surprise of future unexpected expenses.

Purchasing expenses (in addition to purchasing price of property):

Property Acquisition Tax: 6% as of January 2014

Agency commission: Standard is 5.95% (In special cases it could range from 3.57% to 7.14% but if this is the case this will be clear from the very beginning)

Notary fees: 1.00%-1.50%

Land registry charges approx.: 0.50-1.00%

Legal expenses: 1.00%-1.50% depending on the size and complexity of the purchase agreement, e.g. incl. mortgage, new building, etc. (Lawyer is not compulsory but recommended)

Other expenses:

Please note that in new apartment sales in Germany it is common that the kitchen finish is not included. Always make sure to clarify this before finalizing a purchase of an apartment in a new building.
Lighting fixtures are usually not included in the price of a new apartment in Berlin.
Parking spots are usually not included in the prices and come as an optional extra in most cases.

Running expenses:

Management company: For commercial properties: 5% of yearly revenue; for residential apartments: 25.00-100.00 Euros per month per unfurnished unit (depending on size/income); for furnished apartments other rates apply depending on various parameters.

Accountant, tax consultant: Depends on each case. Ranges from 3-6% of gross income (excl.VAT). For companies other fees may apply.

Property tax: Between 150 and 700 Euros for an apartment per year

Building reserve (common-hold) fund: About 0.50-1.50 Euro/sqm/month

Garbage disposal, water, common house electricity, housekeeping, maintenance of heating system, etc.: About 2.00-3.50 Euros/sqm/month

NOTE that running expenses 4 and 5 have to be paid by the tenant if the apartment is rented out. Sometimes the property tax (expense 3) is also refunded by the tenant, according to the agreement made.

P.S. Please note that all information given above is indicative and might change at any point without prior notice.