100 Questions About German Property
The questions owners ask me most often — answered briefly and honestly.
Many owners ask me:
Should I sell my German property before moving back?
My answer
It comes down to three things: whether you need the liquidity, whether you're willing to be a remote landlord, and whether it's currently a seller's market. If you've owned it for more than 10 years, the sale is usually tax-free; under 10 years and not owner-occupied, speculation tax may apply — often the deciding factor. Start with a value and exit report so you decide on real numbers.
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Should I sell my German property before moving back?
It comes down to three things: whether you need the liquidity, whether you're willing to be a remote landlord, and whether it's currently a seller's market. If you've owned it for more than 10 years, the sale is usually tax-free; under 10 years and not owner-occupied, speculation tax may apply — often the deciding factor. Start with a value and exit report so you decide on real numbers.
Will German property still go up in value?
"Germany" isn't one market but many. Prime locations in Munich, Berlin or Frankfurt have durable demand, supported by inward migration and short supply; some smaller towns and suburbs may be flat or soften. Higher interest rates have slowed overall growth, but quality property in good locations holds up. What matters is your specific area's benchmark price and trend — far more than a national average.
What should I do after inheriting a property in Germany?
First, establish ownership: depending on the case you obtain a certificate of inheritance (Erbschein) or use a notarial will, and correct the land register (usually free after inheritance). With several heirs you form a community of heirs and must decide jointly — appoint one authorised contact. For tax, heirs inherit the deceased's holding period — if they bought more than 10 years ago, your sale is usually tax-free. Get a valuation first, then decide to sell, let or split.
How long does it take to sell an apartment in Frankfurt?
In a high-demand city like Frankfurt, a well-priced home with complete documents typically finds a buyer within 8–10 weeks; from signing the purchase contract to transfer and payment, add a few more weeks to months. The biggest variable is pricing: an over-ambitious asking price leaves the home lingering and often selling for less. Attention peaks in the first two to three weeks — price it right and buyers compete.
How do I actually read a German property valuation?
Don't fixate on one number — look at a range: conservative, realistic, optimistic. The core is "area benchmark €/m² × your size," adjusted up or down for condition, floor, energy efficiency and outdoor space. Just as important is market context — demand, price trend, average time to sell for similar homes. A responsible valuation tells you all of this, rather than a single flattering high number.
How much tax will I pay when I sell?
For privately held homes, if more than 10 years lie between purchase and sale the gain is usually entirely tax-free. Even under 10 years it's exempt if you lived in it yourself (the year of sale plus the two preceding full years). Otherwise the gain is taxed at your personal income tax rate as "speculation tax." Let properties don't get the owner-occupier exemption, and depreciation already claimed increases the taxable gain. Have a tax adviser calculate the exact figure — the report gives a rough estimate as a starting point.
Who pays the agent's commission, and how much?
Since late 2020, when selling an apartment or single-family home to a consumer the commission must be shared: if the seller instructs the agent, the buyer pays no more than the seller. In practice it's usually split in half — regionally around 3.57% incl. VAT per side, roughly 7.14% in total, but negotiable. The point isn't the lowest rate but the highest net proceeds — a good agent often adds more than the commission costs.
I live abroad — how can I sell my German property?
It can be done entirely remotely. I can prepare the documents, value the property, arrange photography and viewings, and screen and vet buyers. Signing requires a notary in Germany, but you can grant a power of attorney (Vollmacht, usually notarised/consular-certified) for someone to attend, and some notaries support video options. The price is paid into a notary escrow or your designated account. Communication in Chinese throughout is no problem.
Is it better to rent it out or just sell?
It depends on the net rental yield and how much hassle you'll tolerate. Gross yields in big German cities are often 2.5%–4%, and net is lower after upkeep, tax and vacancy; the upside is keeping the asset and possible long-term appreciation. Selling crystallises the value and ends the burden of remote management. Compare "expected appreciation + rental yield if you hold" against "net cash in hand if you sell" — the answer usually becomes clear.
Which documents do I need before selling?
The core set: an up-to-date land register extract (Grundbuchauszug), cadastral map, floor plans, living-area calculation, and the energy certificate (Energieausweis — must be shown at viewings; missing it can mean fines). For an apartment, add the declaration of division (Teilungserklärung), recent owners' meeting minutes and service-charge/reserve statements. Having these ready speeds up the sale and builds buyer trust. I can prepare the checklist and obtain them for you.
Is now actually a good time to sell?
"A good time" is relative to your specific home, not the headlines. I give you a timing score from three signals: local demand, the direction of the price trend, and how fast similar homes sell. All three strong means a 🟢 strong seller's market; weak suggests holding for now. Rather than guess the macro picture, look at the signals for your actual property — the report shows them at a glance.
What are the risks of just leaving it empty for now?
Leaving it empty isn't a cost-free wait. You still pay service charges, property tax, insurance and upkeep, and problems like burst pipes, leaks or damp get more expensive if no one notices; some insurance is also restricted for long-term vacancy. Your capital is locked up and earns nothing. If you won't use or let it soon, at least get a valuation so you can weigh the real cost of "staying empty" against selling or renting.