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ACQUISITION COSTS

Acquisition costs are incurred as part of the purchase of the property, in addition to the purchase price.

Property Acquisition Tax ( Grundwerbsteuer ) This tax is levied on property transfers when the price exceeds 2,500 and is usually paid by the purchaser. The rate varies by state and in Berlin the current rate is 6% of the purchase price.

Notarisation In Germany, all documents have to be notarised by a recognised public notary for the sales contract to be valid. The cost of this process is approximately 2.2% of the purchase price. This charge covers the notary fees and the land registry fees.

Land Registry Fees Registering your property with the land registry finalises the purchase of your property. The fee is approximately 0.5% of the purchase price or in some instances can be a fixed fee of around 2,000 per unit.

Legal Fees Legal fees will vary depending on the price of your apartment, and the amount of legal advice you receive.

Stage Payments The developer will provide the purchaser with a construction schedule with details of when the stage payments are due. In Berlin, the first stage payment is typically 30% of the purchase price. Subsequent stage payments vary between construction schedules. Your solicitor will be able to make payments on your behalf at the times specified in the construction schedule, subject to certain development milestones being achieved.

Mortgage Costs If you arrange your mortgage through a broker then there will likely be some fees payable. These fees will vary depending on the mortgage broker you have chosen.

Furniture Pack In Germany, furniture packs are uncommon and the minimum requirement to rent out an apartment is to fit it with a kitchen.