Why not think about buying a home in the country if you want to invest in real estate or simply want to avoid Brexit?
Foreigners frequently invest in real estate, whether it be for personal use, as a vacation house, or to rent to renters. Furthermore, purchasing property in the country does not require residency there, which means any Indian citizen can purchase property in Germany.
Here is a guide to the paperwork required to buy a house in Germany and why a notary public is necessary to complete a transaction.
Advantages of buying properties as a foreigner
The country is a well-liked destination for Britons wishing to move to or invest in property overseas.
In big cities like Berlin, renting is common, although property owners cannot get much of a return. Taxes for investors can also make it pricey unless you intend to own the property for a period exceeding ten years.
You should anticipate paying a larger deposit than you would in the UK because international investors are viewed as being riskier.
But don’t let any of this deter you; investing in real estate in Germany is a common move. Germans buy homes that are constructed to last, and the country’s cheap mortgage interest rates encourage them to stay put once they do. The market is remarkably steady.
Relocation
As a non-resident, you can purchase a home, for example, a rental flat in Berlin.
You are not required to be a resident to invest in real estate as an Indian citizen. You must nevertheless be able to obtain a mortgage. Depending on your residency status, you may be able to borrow up to a maximum of 60%.
Additionally, you’ll need to demonstrate your ability to pay the mortgage by achieving the necessary monthly income standards.
Required expenses and paperwork
You will also be responsible for additional expenses like notary fees and taxes like capital gains tax as a non-resident who does not reside in Germany. You must also submit several documents that have been translated into German.
Proof of equity, the most recent tax returns, proof of employment, and the Selbstauskunft questionnaire
Keep in mind that agency fees can add another 5% to 10% to the total cost of purchasing the home.
How to purchase a home
Purchasing a home anywhere around the globe is like doing so in Germany. Before you select and submit an offer on your ideal German house, you will typically need to investigate mortgage options and obtain an offer in principle.
You will require a German notary to draft the sale contract once you have placed an offer and to witness your signature when it has been approved. Once the transaction has been correctly registered by the notary, you will have about a month to pay the property sale tax.
When purchasing a home, a notary is legally required because German contracts demand a witness.
Contract ratification under German law
The terms “ratification” and “Genehmigung” may be used if you are a foreigner purchasing a home in Germany.
You will likely need to sign a ratification deed, or “Genehmigung,” in front of a UK notary and have this document apostilled if you designate an agent or third party in Germany to handle the real estate transaction on your behalf and to execute documents related to the purchase on your behalf. This procedure can be assisted by our knowledgeable notaries in the UK.
You sign the “Genehmigung” document, which essentially ratifies the document(s) that your agent, attorney, or another designated third-party representative in Germany signed on your behalf.
