How do I sell my Property in Berlin, Germany?
If you are thinking of selling properties in Berlin, there are some things you need to consider and steps that need to be completed before the transaction is completed. You also need to do the following:
Check the impact of taxes in Germany on selling your property
- Prepare property documentation
- Determining the optimal selling price
- Get ready to sell Berlin real estate
- Find the right buyer and complete the sales process
- See the tax implications of selling real estate in Germany
- Before starting the sale process, it is wise to consider the tax implications of selling real estate in Berlin. Depending on the type of ownership and the situation in Germany, you may have to pay (or not pay) three different taxes.
Spekulationssteuer:
Private sellers may be required to pay this tax if they sell real estate that they do not currently live in or have not lived in for the past three years.
Gewerbesteuer and Körperschaftsteuer:
If you buy or sell more than two real estate properties in Germany in the last five years, you may be considered a real estate trading company and you may have to pay their corporate tax.
Umsatzsteuer: If you buy or sell real estate as a commercial activity (ie real estate development), you have to pay
However, if you sell an investment property that you have owned for more than 10 years as a private owner, you can sell it 100% tax exempt.
Therefore, before deciding to sell your property in Berlin, check with your tax accountant or real estate agent in Berlin as the capital gains tax rate can exceed 40% in some situations. With that in mind, you can decide whether to proceed with selling your apartment in Berlin or wait a few years for a potential tax cut.
Prepare your property document
Before starting the sales process, it is important to prepare the property documentation. Some paperwork is required to sell a property in Berlin. Basically what you need:
Layout Plan-Called Grundriss in German:
This document shows accurate measurements of your property.
Accreditation abstract from land registration: Called Grundbuchauszug in Germany, this is the official property certificate from the city.
Declaration of division:
Called Teilung serklärung in Germany, this document shows the location of the property in relation to the adjacent property.
Monthly HOA or Condo Fees:
Called the Wirtschaftsplan in Germany, this document lists details of building costs and a share of each cost.
Minutes of the Owners’ Meeting for the Last Three Years
There are also many other documents that may help the buyer to have a clear idea of the condition of the apartment or building. Most of these documents relate to apartment owners who are ready to sell their real estate in Berlin. Some realtors suggest collecting documents on your behalf. This makes many real estates much easier. German building managers do not speak English.
Determine the optimal selling price
With price increases over the last five years, you may earn more than you paid for selling your home or apartment.
The first thing you need to know is that current house prices in Berlin is one of the most popular seller markets in the world when it comes to vacant apartments.
Housing needs far exceed the available housing market offers. In fact, with over 98% occupancy, the demand for affordable apartments will be quite high when it comes to selling vacant apartments.
If your property is occupied, it is in low demand and illiquid, and the sales period can always be twice as long depending on the offer price. Tenant flats are generally sold at a discounted price compared to vacant flats.
The selling price discount basically depends on the type of rental agreement and the rental level and can be up to 40%.
