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Germany – Property Taxes

Property Tax

  • Property tax in Germany is known as “Grundsteuer” and is based on the value of the property. It is usually paid annually and is calculated by the local government.
  • The tax rate can vary depending on the location of the property and the local government’s budget.
  • For example, in Berlin the property tax rate is around 0.5% of the property’s value per year, while in Munich it is around 0.6%.

Capital Gains Tax (CGT)

  • When a property is sold in Germany, the seller is required to pay CGT on any profit made from the sale.
  • The CGT rate for private individuals is currently 30% for properties that have been owned for less than 10 years and 25% for properties owned for more than 10 years.
  • For example, if an individual sells a property for €500,000 that they bought for €400,000, they would have to pay €30,000 in CGT if they have owned it for less than 10 years, and €25,000 if they have owned it for more than 10 years.

Inheritance Tax

  • Inheritance tax in Germany is imposed on the transfer of assets upon death.
  • The tax rate varies depending on the relationship between the deceased and the beneficiary, with a higher tax rate for more distant relatives.
  • There is no inheritance tax between spouses or between parents and children.
  • For example, if a father leaves a property worth €500,000 to his son, there would be no inheritance tax imposed.

Gift Tax

  • Gift tax in Germany is imposed on the transfer of assets during a person’s lifetime.
  • The tax rate is the same as the inheritance tax rate and also varies depending on the relationship between the giver and the receiver.
  • For example, if a father gifts a property worth €500,000 to his son, there would be no gift tax imposed.

Tax on Property Income

  • If a property is rented out, the owner must pay tax on the rental income.
  • The tax rate depends on the owner’s personal income tax rate.
  • For example, if an individual has a rental income of €20,000 per year and a personal income tax rate of 42%, they would have to pay €8,400 in taxes on their rental income.

Tax Advantages in Buying a House in Germany


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  • First-time buyers may be eligible for a reduced CGT rate of 50% if the property is sold within 10 years of purchase.
  • Tax relief can be claimed for interest paid on a mortgage for the purchase of a primary residence.
  • There are also various government programs and subsidies available for energy-efficient renovations and improvements to properties.


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In this short video, we dive into the significant health care updates and changes happening globally in 2024. From Germany's insurance cost adjustments to Cyprus's renewed COVID-19 precautions, we cover the essential news you need to know.

Germany's Health Insurance Update:

Starting in 2024, residents in Germany will see a slight increase in their health insurance costs, with a 0.1% rise to a maximum of 1.7%. This adjustment aims to expand coverage for medical care not currently included in statutory health insurance, such as select dental treatments, IVF, and early cancer screenings.

COVID-19 Measures Reintroduced in Cyprus:

With over 3000 new COVID-19 cases, Cyprus is stepping up its game by reintroducing health measures. Requirements now include proof of a negative COVID-19 test for entry into various facilities, emphasizing the importance of vaccination, especially for the elderly, to combat the evolving virus strains.

Free Health Trials in Trieste, Italy:

Trieste launches an initiative for free health screenings, including echocardiograms and blood tests, focusing on preventive care against non-communicable diseases. This move underscores the city's commitment to improving public health through early detection and prevention.

Spain's New Health Advice App:

Madrid introduces a groundbreaking app offering reliable health advice to counteract the widespread misinformation online. This app, part of the 'Madrid Te Cuida' initiative, will guide users to accurate information, from diet tips to medical queries, ensuring the advice is vetted by health professionals.

Expat Satisfaction with Healthcare in Mexico:

A study reveals that expat retirees in Mexico are largely content with the healthcare quality and costs, with many citing significant savings compared to the United States without compromising on care quality. This insight sheds light on the growing trend of healthcare tourism and relocation for medical reasons.

Stay tuned as we unpack these updates, providing you with the insights and implications of these healthcare changes. Whether it's the impact on your wallet or the quality of care you can expect, we've got you covered in this comprehensive overview of health care in 2024. Don't forget to like, share, and subscribe for more health news around the globe!

YouTube Video UCB21b-C4O2aXm7H18_GsXMQ_nC_Fs6gU22U

Expat Focus International Healthcare Update January 2024

Expat Focus 31 January 2024 10:36 am

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