Buying a rental Property in Germany

Buying a rental property in Germany can be a complex process involving legal procedures and high transaction costs, but it offers stability and certain tax benefits.

Buying a rental property in Germany In A Nutshell

Many people in Germany have the dream of obtaining a passive income stream. The most obvious way to achieve this is simply buying a rental property in Germany. This is often combined with a monthly income stream and a constant increase in value, preferably even greater than inflation. But is it really that simple?

The growth of the German real estate market in recent years has been hard to ignore. Those who have bought a rental property in Germany have enjoyed a substantial increase in prices and rents thanks to a very strong demand for housing. But where does this growth come from? Here in Germany, the growth is due to several factors. Among others, it is due to a growing population (mainly through immigration), a low unemployment rate, and an influx of foreign investors.

A key factor for many investors is a well-regulated real estate market. Germany has one. The transparent real estate laws and strong legal system provide a high degree of security for buyers of rental properties in Germany. In addition, there are some incentives provided by the government that make investing even more lucrative. Among other things, there are tax advantages for buying a rental property in Germany.

While you hardly have any advantages from a financial point of view when buying your own home, you get a lot of tax advantages when buying a rental property in Germany. First of all, the initial costs you incur are tax deductible, furthermore you can deduct the interest rate and also 2% or 3% of the property value (depending on the year of construction). But that’s not all, renovation work is also tax deductible. More on this below. So if you have a high income and therefore a high tax burden, investing in real estate can definitely pay off.

If you want to buy a rental property in Germany, you need to be prepared for a complex process. To make this as simple as possible for you, it often makes sense to work with a real estate expert together. This expert will then take care of factors such as location, rental demand, and potential rental income. In addition, management can be useful, as this usually only costs a few euros a month, is also tax-deductible, and takes care of everything to do with the property and letting.

If you are interested in buying an investment property, PerFinEx can help. We can help you with both the property search and the financing of the property. The advantage of this is that all our properties come with a full management service. This means that you don’t have to worry about anything after the purchase.

In summary, buying a rental property in Germany offers buyers a stable and secure investment opportunity. With a highly regulated market, a solid legal system, and transparent real estate laws, Germany is a safe and attractive destination for those looking to invest in rental properties. Although buying a rental property can be a complex process, investors can earn steady returns on their investment and rental income. Learn more about buying a rental property in Germany on this page.

Our Latest Buying a rental property in Germany Videos

In our YouTube playlist on buying a rental property, we go into detail and show you exactly how you should develop your savings strategy for your personal real estate investment and what to look out for when buying a rental in Germany.

Our Latest Buying a rental property in Germany Blog Posts

In our blog on buying a rental, we go into detail and show you exactly how to prepare for buying a rental in Germany, what the benefits are, and what to look out for. Additionally, we help you save up for your first rental property.

Wheter to pay off mortgage or invest the money
Pay off mortgage or invest? – A helpful comparison

When you have money, should you pay off your mortgage or invest the money? If you pay off your house, you feel like you are living in your home for free. If you invest, you can achieve the historical stock market average of 7% per year.

One Euro Houses In Germany
One euro houses in Germany – Is it a real option?

The Italian government offers the possibility to buy real estate for just a single euro. In this article we will see if this option is also available in Germany, so you can buy 1€ houses in Germany.​

Our Latest Buying a rental property in Germany Blog Posts

In our blog on buying a rental, we go into detail and show you exactly how to prepare for buying a rental in Germany, what the benefits are, and what to look out for. Additionally, we help you save up for your first rental property.

Calculate the costs for your rental property with our Calculators

With our calculators, you can calculate everything around your first rental property. From what you can afford to pay, to potential ways to save on the property, to the actual loan you will most likely need.

Best real estate
Loan in Germany

Find the best real estate loan in Germany with the lowest interest rate.

Best Bausparvertrag
in Germany

Find the best Bausparvertrag in Germany with the highest interest rate.

Real estate price
Calculator

Find out how much real estate you can afford.

Buying or renting
calculator

Compare renting vs. buying on a financial perspective.

Calculate the costs for your rental property with our Calculators

With our calculators, you can calculate everything around your first rental property. From what you can afford to pay, to potential ways to save on the property, to the actual loan you will most likely need.

Best real estate
Loan in Germany

Find the best real estate loan in Germany with the lowest interest rate.

Best Bausparvertrag
in Germany

Find the best Bausparvertrag in Germany with the highest interest rate.

Are you looking for something specific?

Buy a rental property in Germany

Learn More About buying a rental property in Germany On Social Media

Social media can be a valuable source of information when learning more about buying a rental property in Germany. By following our accounts, you can get helpful tips, news, and resources related to real estate in general and regulations in Germany.

Book A Free Meeting With Us To Discuss Your saving strategy

Buying a rental property in Germany can be difficult – especially as an expat with limited German skills. Make a free appointment with us & our investment experts will discuss with you the perfect strategy for your real estate investment.

Get In Touch With Us

Would you like to learn more about buying a rental in Germany or do you need help with the right strategy for your real estate investment? Just send us a message and we will help you with your real estate dream.

Personal Finance for Expats

Properties of
the week

Secure Your Access To Exclusive Real Estate Investments In Germany Once A Week In Your Inbox