Real estate maintenance costs in Germany include taxes and insurance, property management fees and utility bills as well as monthly mortgage payments. It costs
The annual property tax (Grundsteuer) is assessed as follows: 0.35% of the estimated property value multiplied by the ‘local rate’. The estimated property value is the tax (not market) value of the land on which the property is located. For apartments, the estimated property value is assessed according to the proportional share of land area on which the apartment building stands. This land value depends on many things including the property type, area and location.
Property tax rate multiplier
For example, a €20,000 apartment in Berlin will be subject to annual taxes of €567 (20,000 × 0.0035 × 8.1 = 567).
Those leasing their property must pay personal income tax (Einkommensteuer) at a maximum rate of 45%.
Personal income tax rates in Germany
|Up to 8,354||0|
|up to 16,708||0*|
*For married couples with shared income
A homeowner can choose to insure their property. Price estimates (Wohngebäudeversicherung) are available on TopTarif.de. Home insurance costs about €200 per year on average.
Management company fees
When purchasing an apartment in Germany, the buyer must be accepted into the homeowner association and pay membership that goes towards the maintenance and repairs of common areas (staircase, attic and basement) performed by a management company that charges each household
Water, electricity, heating, TV and waste removal cost about €25.20/sq. m. in Munich, €22.60/sq. m. in Hamburg and €21.60/sq. m. in Berlin.
Average utility billsin Germany,
€/monthWater, gas, electricity and waste removal costs for 85 sq. m. apartment
(reported by Numbeo)
According to the consulting company NUS, water in Germany is the most expensive in the world. It costs €1.90/m³, four times more than in the USA and twice as much as in Australia.
Gas bills are
Average gas and electricity costs
in Germany (2013), €/year(reported by Check24, Verivox)
Find average utility costs per property type in German regions at Verivox.de.
Repairs near landmarks or historic buildings can be subject to restrictions. For instance, there are laws regulating window replacement or alteration of buildings near constructions of historic importance.
Repair costs in Germany(reported by Geprueft.de)
|External painting and
|from €20/sq. m.|
|Renovation of a
5–10 sq. m. bathroom
|Woodflooring||from €65/sq. m.|
|Concrete tiles||from €18/sq. m.|
|Clay tiles||from €50/sq. m.|
|Slate||from €100/sq. m.|
|Window installation and insulation||€500|
|Door installation and insulation|
|Front door||from €1,500|
|Interior doors||from €200|
Homeowners are liable for the maintenance of their properties. Tenants cover taxes and utility bills and lessors pay the insurance and the management company fees of their leased apartments.