Expat Finances helps expats in Germany invest in property while leveraging tax benefits and rental returns in the German real estate market.
Real estate investment and tax exemption
For whom?
Why buy or invest in real estate in Germany?
- Attractive prices and stability
- Strong demand for rentals
- Attractive tax benefits
- Strong rental returns
Attractive prices and stability
Property prices in Germany, especially in secondary cities like Leipzig or Dresden, are often more affordable than in bigger cities. The market is stable and less speculative, making it ideal for long-term investment.
Strong demand for rentals
With a homeownership rate below 50%, rental demand remains high in major cities like Berlin, Munich, and Frankfurt — ensuring steady rental income and a low vacancy risk.
Attractive tax benefits
In Germany, property depreciation over 50 years, along with the deduction of loan interest, renovation costs, and fees, significantly reduces the taxable base. Rental income is not subject to social contributions, unlike for exemple in France where CSG/CRDS amounts to 17.2%.
Strong rental returns
Thanks to reasonable property prices and strong demand, rental yields in Germany are often higher than in France for example — especially in developing areas.
Real estate in Germany: advantages and disadvantages
| Topics | Advantages | Disadvantages |
|---|---|---|
| Taxation | Stability of tax laws = no surprises | Fewer opportunities for special tax breaks tied to specific types of properties |
| Taxation | With the right strategy, you can create a property tax loss and recover up to 47% in taxes | High taxes – if you do not have anything to deduct from your rental income, you may have to pay up to 47% of taxes |
| Savings | Strong and stable economy = low risk of unpaid rent | Strong rental laws and tenant protections limit the ability to raise rents or rent the property on platforms like Airbnb, etc |
| Mortgage | Interest rates generally attractive compared to many other countries | More difficult for foreigners with a limited residence permit to obtain a mortgage |
| Location | Easier management: you live in the city where you buy. | Expats often live in large cities, which are usually more expensive |
What we offer :
Real estate investment guidance and strategy :
To help you invest according to your budget, tax situation, and long-term financial goals, we conduct a thorough analysis and build a tailored strategy. We identify high-potential markets, provide advice on tax-efficient investment structures, and support you in structuring your real estate project. We also help you avoid double taxation while maximizing your rental returns.
Mortgage application support :
Get tailored financing with our support in negotiating the terms of your mortgage in Germany. We compare bank offers, assist with your application file, and help you secure the best possible interest rate.
SCPI investment support :
Where to invest your money in Germany?
We guide you toward the best real estate investment opportunities, whether you're buying a rental property or a primary residence.
Maximize the profitability of your investments by choosing secure, high-performing assets.
We analyze market opportunities, help diversify your portfolio, and build strategies tailored to your investor profile.
Support for rental property investment :
Identify the best cities and opportunities to generate rental income while optimizing your tax situation. Should you choose a tax-incentivized investment or a regulated rental property? We help you understand the tax benefits of property investment in Germany and guide you toward the most suitable option.
Primary residence purchase support :
Looking to buy a property in Germany as your primary residence? Find the ideal home and secure the tax advantages of your purchase with our expert guidance. We help you avoid double taxation, identify the best areas to buy, navigate administrative procedures, and obtain financing and mortgage approval in Germany.