Finest Invest Gmbh Dresden

Real Estate in Dresden

Dresden is renowned for having one of Germany’s strongest economies. With zero debt and a superior growth rate than the national average, it is an excellent choice for investors from all over the world. But what is the city of Dresden like? What is its history and heritage?

The city of Dresden is one of the biggest and most densely populated cities in the whole of the country. Its skyline is widely accepted as one of the most stunning across the whole of Germany. When viewing the vast array of church spires, towers and other beautiful architecture It is amazing to think that the entire city was destroyed by Allied forces during the Second World War. Luckily for the residents of Dresden (and those who want to move there), most of the historic building were dismantled and removed from the city before bombing commenced and can now be viewed in one of the cities many museums. 

Dresden has a rich history of culture, particularly in the field of music and opera. Art is also prominent and something of an obsession, which is not surprising given that it houses one the world’s best art museums - the Staatlichen Kunstsammlungen, as well as many other smaller, yet still beautiful and enthralling exhibits.

Legal Aspects of Real Estate in Dresden

One of the most often asked questions when it comes to real estate investment in Dresden (and Germany as a whole) is, ‘Who can own real estate?’. The answer is simple - pretty much anyone or legal entity can, even those who aren’t residents. This encompasses entities under both public law and private law, such as stock corporations (AG) or limited liability companies (GmbH). The only main exception to the rule are partnerships with unlimited liability as they are not registered with any official register and therefore must follow a different route than the above mentioned entities. 

Another question that is asked frequently is, ‘What fees are associated with purchasing property in Dresden (and the rest of Germany?’. The fees can be fairly high and may include:

Notary fees: These are 2%. 

Property purchase tax: This varies between 3.5% and 6.5% depending on the area. As Dresden is located in Saxony is it liable to the lowest rate of 3.5%. 

Estate agent fees: Again, these vary and can be anywhere from 3% to 6% (Ex VAT) and are usually paid buy the purchaser of the property. 

If borrowing money from a German lender then they typically like to see that these fees can be paid in full by the purchaser.

Are there any tax incentives for investing in real in Dresden?

Considering the tax implications of an real estate investment is absolutely vital, no matter where in the world you are purchasing. It is imperative that you seek legal and tax advice before buying. Germany does offer a range of tax incentives by investor who are purchasing residential property to let. There is also a big incentive in the guise of a depreciation write down of 2% per annum (over 50 years) on the purchase price of the property for buildings built from the 1st January 1925 onwards. 

Whilst this is only a small snippet of the information you’ll need if you are to invest in real estate in Dresden, it should be known that Germany is an excellent country to invest in due to its exceptionally strong economy, political stability, highly qualified workforce and many investment types available across many different cities (including Dresden).

If you’re interested in investing in real estate then please get head over to:

https://xing.com/companies/finestinvestgmbh