German property glossary
Key terms for buying in Germany as an expat, investor, or owner-occupier: apartments, houses, and rental investments. Use with your Makler, mortgage broker, and Steuerberater; educational only, not tax or legal advice.
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- AfA (depreciation)
- Tax deduction for building wear on rental property under EStG; typically 2–3% p.a. on the building share.
- Read more in guide →
- Sonder-AfA §7b
- Accelerated depreciation for qualifying energy-efficient new residential builds (e.g. EH40 / QNG).
- Read more in guide →
- Grunderwerbsteuer (transfer tax)
- State-level real estate transfer tax on property purchases in Germany; rates vary by Bundesland.
- Tilgungsrate (repayment rate)
- Annual principal repayment percentage on a German annuity mortgage; drives monthly payment and debt timeline.
- Read more in guide →
- Annuitätendarlehen
- Standard German fixed-payment mortgage where early payments are interest-heavy and later payments repay more principal.
- Eigennutzung (owner-occupier)
- Buying to live in the property yourself; different affordability and tax framing than rental investment.
- Read more in guide →
- Vermietung (rental investment)
- Buy-to-let path: rental income, vacancy, landlord costs, AfA, yield, IRR, and exit tax logic.
- Read more in guide →
- WEG (condominium association)
- German condominium ownership law; Hausgeld, reserves, and special assessments affect net returns.
- Hausgeld
- Monthly condominium service charge; split into recoverable (umlagefähig) and non-recoverable costs.
- KfW programmes
- Government-backed loans and grants for energy-efficient builds, renovation, and some owner purchases.
- Read more in guide →
- Mietpreisbremse
- Rent cap in many cities limiting increases on re-letting; affects achievable rent assumptions.
- Vorkaufsrecht
- Municipal or tenant pre-emption right that can delay or block a purchase contract.
- Eigenbedarf
- Landlord self-use termination ground; relevant if you buy a tenanted unit.
- Spekulationssteuer (10-year rule)
- Private rental capital gains may be tax-free after ten years of ownership under §23 EStG.
- Read more in guide →
- Energieklasse
- Energy efficiency rating A+ to H; drives running costs, retrofit risk, and bank appetite.
- Read more in guide →
- Eigentumswohnung (ETW)
- Condominium apartment; WEG charges and community decisions matter as much as the unit price.
- Mehrfamilienhaus (MFH)
- Multi-family building; higher yield potential, more complex management and financing.
- Bodenrichtwert
- Official land value benchmark used to split purchase price into building vs land for AfA.
- Net rental yield
- Annual net rent after recurring costs divided by total investment; core investor KPI.
- Cashflow
- Money left each month after rent, costs, and debt service; can differ sharply from paper yield.
- VV-GmbH
- Asset-holding GmbH for properties; different tax path than private ownership.
- Read more in guide →
- MaBV
- Developer payment protection law; milestone-based payments on new-build purchases.
- Kaufnebenkosten (purchase costs)
- Closing costs on top of purchase price: Grunderwerbsteuer, notary, land registry, broker; often 10–15% of price in Germany.
- Residency & financing (expats)
- Banks weigh residence permit type, income stability, and equity; Immowiser models cashflow but does not approve loans.
- Exposé due diligence
- Structured check of listing assumptions (rent, Hausgeld, price) before offer or financing; core Immowiser use case.