Why Berlin?

Berlin is the capital of Germany (largest economy in Europe) and with a population of 3.4 million, it is the second largest city in Europe. Berlin property prices are now recovering from the decline in the market which took place from 1995 to 2004. Business and consumer confidence are now rising and the German economy is on the road to recovery. This is leading to property prices rising from a 15 year low, to coming nearer in line with other European capital cities.

Facts on Berlin

• Capital city of Germany
• Population 3.4 million
• Home ownership 15%
• High rental yields 5 – 8%
• Low cost price (€1000 - €2,000 per square metre)
• Apartments are let unfurnished
• Average tenancy 5-10 years
• New building construction at historic low

Click here for more infomation and full presentation on property investment guide in Berlin.

Map of Berlin

Frequently Asked Questions:

• Where should I buy in Berlin?
• What are the purchase costs associated with buying a property?
• Who will manage the property?
• How do rents increase?
• How much finance can I get in Germany?
• What are the tax implications of owning a property in Berlin?

Where should I buy in Berlin?
The districts are graded into Best, Good and Basic on the classification map of Berlin. The best districts of the former west Berlin are Zehlendorf, Steglitz, Charlottenburg and Wilmersdorf. The best district of the former east is Mitte.

There are always poorer micro areas in good districts so it is important to have a good knowledge of the city or get good advice before purchasing.

Merrick Property Investments will guide you through the best locations to purchase investment properties in Berlin.

What are the purchase costs associated with buying a property?
The costs associated with the purchase of a property would typically be:

Property Purchase Tax 4.5%
Estate Agent Fee 6.0%
Notary Fee 1.0%
Legal Fee 0.5%

In the German market it is the purchaser (not the seller) who pays the Estate Agent.

Who will manage the property?
Merrick Property Investments will advise you on a competent Property Management Company to manage your property in Berlin. The company will provide the complete management service including installing new tenants, collecting rents, day to day running of the property and overseeing any necessary repairs.

How do rents increase?
In Berlin rents can be increased up to and in line with the local government controlled rent table (Mietspiegel). This increase cannot be greater than 20% every 3 years. However greater increases may be possible if the apartment has been modernised by the landlord.


How much finance can I get in Germany?
Merrick Property Investments can arrange finance through local German banks. Generally finance of 60 – 75% of the purchase price of the property is available. We deal with a number of German financial institutions in order to get the best finance deal for our clients.

What are the tax implications of owning a property in Berlin?
Property in Germany can be owned by a private individual, private partnership (GbR) or a limited company (GmbH). The tax implications differ depending on which type of owner. Our company along with our taxation partners in Germany can advise on the best options.

Full tax relief is available on costs associated with owning a property in Germany. These include interest on the loan, maintenance and repair costs, property management fees and other associated expenses.

There is a double taxation treaty between Ireland and Germany which means tax will only have to be paid once between both countries.

As with all property investments, we recommend each individual gets independent taxation advice before entering into any property investment contract.

Please Contact  Noel Merrick at 087 256 4281 or merrick.noel@gmail.com