Visit to Germany: import and export of currency
Since January 1, 2013, a uniform form of the customs declaration for the application of individuals for the transfer of funds began to operate on the territory of the European Union. According to the new rules, if there is an amount in excess of 10 thousand Euros, the money will have to be declared twice - during the arrival in the EU and departure from it.
At the same time, it will be necessary to declare not only cash in Euros, but also an equivalent in any other currency, as well as securities. The rule also applies when traveling through the EU countries in transit. If the declaration contains inaccurate or incomplete information, the declarant will be punished, and money may be confiscated.
Amounts of 10 thousand Euros or more must be indicated in the customs declaration, which should be mandatorily filled in. In the event that anyone decides not to declare more than 10 thousand Euros at the crossing of the European Union border in Germany, he risks, according to § 31 a ZollVG, to become an unwitting participant in the administrative process, providing a fine of up to 1 million Euros. This norm is part of the European Commission directive on combating money laundering and the financing of terrorism, and applies to both EU citizens and non-EU citizens.
Business Tour around Germany
If you want to become a real estate owner in the very center of North Rhine-Westphalia and get a little closer to the capital of this land, then the Business Tour is exactly what you need! Two unforgettable days in Germany on a business tour include inspecting real estate, opening a bank account, signing contracts.
After completing these actions, we propose you enjoy the beauties of the Rhine from the beautiful Düsseldorf Bridge. The embankment will give you a view of one of the most colorful districts of Düsseldorf - Medienhafen where business centers of design offices, media outlets and architectural monuments are located. Bring along your camera, because every building here is a work of art. The inclined, "dancing" and "crooked" houses, where there is not a single identical window, give wings to imagination. The Spanish Steps (Spanische Treppe), built by the students of the Academy of Arts, the symbol of the city - Radschleger (from German- "boy making a wheel") and the Rheinturm TV tower (its height is 240.5 m) with an observation deck are worth your attention.
The historic district of Düsseldorf is called Altstadt. In its narrow streets, along with the sights and monuments of architecture, there are countless restaurants, cafes, pubs and pizzerias. Therefore, this district is known as "the longest bar in the world".
Fans of shopping will appreciate Königsallee boulevard - a paradise for shopaholics, because there are large shopping malls, boutiques and shops for every taste and budget.
Our company is centered around and comprise professional experts in the field of investments and real estate. Employees of our company are graduates of the most reputable universities in Germany, speak excellent German and English, experts in finance, investment, marketing, and economics, and are well versed in real estate issues in West Germany.
The wealth of knowledge and experience, gained by our employees, helps us to freely navigate in the banking sector, investment funds in the real estate market, in individual construction, in construction financing, foreign investors crediting, real estate management, evaluation of projects investment attractiveness and risk management. We always keep an eye on real estate market trends which helps our clients invest funds in the most lucrative deals.
Customers’ preferences and requirements are our command, so we choose the most favorable conditions for investing and buying real estate for each our customer.
Benefits of working with us:
- We work only with trusted and major banks in Germany (Сommerzbank, Deutsche Bank, Sparkasse)
- Operational efficiency and professionalism of our notaries allows us to freely navigate the Law of Germany
- We guarantee the quality of the provision of public services, because we cooperate only with professionals in this field
- Positive feedbacks from our customers
- We calculate the net rate of return of our facilities, because we exclude from the annual receipts of lease payments the utility and maintenance costs that are borne by the real estate owner
- Unlike a German broker whose work ends when signing a contract of sale with a notary, we provide full English-speaking support at all stages of investing, including after-sales management of real estate with monthly reports in English
- an English-speaking tax adviser from a German tax company help our customers to optimize taxation
- Only our company provides insurance
against non-payment of lease and compensation of losses to real estate objects, notably, the first year of insurance – as a gift to the investor
- We help to get a loan from the German bank at 2.5-3.5% interest rate (at the current moment) for purchasing large real estate objects
- If you want to get a residence permit / permanent resident card, we provide a German lawyer services whose portfolio of positive outcomes in these matters has only credibility
- For the convenience of our customers, we help them to open in a German bank a private account, which is used for paying real estate, receiving lease payments, making payments for managing and maintaining real estate in Germany
- We have a transparent cost structure when purchasing profitable real estate
To buy real estate in Germany
Real estate in Germany in the post-crisis period enjoys increased interest on the part of far-sighted investors. The German market is currently the cheapest and at the same time high-quality in Europe. This country with a stable economy and a powerful legislative base that protects the rights of the private owner attracts more and more foreign buyers every year, including investors from the EU countries. Foreign investors are equal in rights along with German citizens when buying real estate and can count upon minimum requirements. Unlike other European countries, the buyer is not required to register itself as a legal entity, because real estate is transferred into property to private individuals, too. For foreign buyers, there are minimum requirements: the presence of the international passport.
Representation offices of our company will provide the investor with exhaustive and competent information on all the features of investing in Germany's profitable real estate and will help choose a real estate object. Specialists of BMG Invest GmbH company will provide full support at all stages of the purchase of real estate in Germany. Our services include:
- evaluation of the investment attractiveness of the real estate object to the current date, verification and assessment of possible risks
- analysis of the technical condition of the building or apartment, checking of possible debts for utility payments, primary replacement or search of the tenant (if deemed necessary)
- negotiations with sellers of real estate
- legal review of all mandatory documents for signing a contract of sale
- opening of an account with a German bank
- inspection of the real estate object
- arranging of signing the contract of sale with a notary (including by proxy to a representative appointed by our company)
- translation from German into English (verbally or in writing) of all documentation
- free English interpreter – employee of our company during a visit to Germany
- assistance in opening a mortgage loan in a German bank
- trust management and maintenance of the acquired real estate on the part of our partner-management company IV Internationale Verwaltungen GmbH with English-speaking employees
- provision of tax adviser services
- trust management of the account in a German bank
- regular reports on the movement of funds on the investor's settlement account, as well as reports on the accrual of investment income on the purchased real estate
- next purchases of profitable real estate by proxy
- exclusive service: possible provision of insurance against non-payment of lease and damage to the real estate object
Mandatory building insurance
As a rule, real estate insurance in Germany includes insurance against fire, weather and natural disasters consequences, as well as flooding due to damage (corrosion, freezing) of water pipes, and other incidents.
These types of insurance are not mandatory by law, but indeed almost all buildings in Germany have this type of insurance. This justifies itself in any case, since by law the landlord has the right to include all costs for such insurance in utility payments paid by the tenants of apartments (offices, etc.). Besides, banks, in the case of real estate financing, require the availability of these types of insurance.
Protection mechanisms in case of non-emergence of a lease with a leased apartment and/or causing damage by the tenant
BMG Invest possesses unique know-how, offering its customers legal protection mechanisms against non-emergence of a lease from the tenant and/or causing technical damage (vandalism) by the tenant.
We offer our customers such mechanisms and often see about their implementation totally free of charge.
How does real estate financing go?
Recently, various investments have been actively gaining momentum. And this is not accidental, because such a business is very advantageous and profitable, especially when it comes to investing in real estate in Germany. This country today is one of the leaders in real estate investing, because it is considered a developed European state, which combines high quality, reliability and low prices. And one of the reasons why Germany attracts so many investors is affordable lending.
What is the advantage of buying real estate with a loan?
For today in Germany there is a possibility to take a long-term loan with a minimum interest rate. Depending on the bank and the federal land, it can range from 2.5% to 3.5% per annum. Due to this, the rate of return of the object increases and the taxable profit is reduced. In addition, the minimum interest rate contributes to the fact that the tenant can actually pay the credit for the owner.
In order to see a sample loan amortization schedule, please use our Loan Calculator.
What are the advantages of real estate lending in Germany?
To repay a mortgage loan, an annuity scheme with a fixed or variable rate is used. This scheme offers amortization of the loan by the consistent installments throughout the entire loan term. However, it happens that at the beginning of the installment interests prevails. In this case, at the end of the loan term, the main share will fall on amortization of the principal amount of loan.
The interest rate depends on the loan term: the longer it is, the lower it is. There is also one important point: the issuance of a loan by a bank depends on the size of the value of the real estate object. The bank provides for an independent appraisal of the value of the real estate object and takes into account both its market value and possible changes in the future.
Today, foreigners can take a loan in almost any mortgage bank in Germany.
What does a foreigner need to get a loan to buy real estate in Germany?
- a mandatory condition for getting a loan for real estate - a permanent income in Germany. Its level should be sufficient to cover the loan. Ideal option in this case may be leasing of real estate. This in any case will ensure a monthly stable and high income;
- in order for the bank to preliminarily consider applications for getting a loan, it is necessary to provide it with a standard set of documents;
- it is necessary to prepare certificates that confirm the borrower's income and solvency. These documents include: tax return, real estate documents, investor's account statement, extracts from deposits on the availability of securities and precious metals.
Normally, the bank reviews the documents and takes a decision about 3-5 weeks. If the result turns out to be positive, the borrower opens an account with the bank that provides the loan, and transfers the necessary loan amounts.
Features of buying real estate to a legal entity
The desire to buy real estate abroad is increasingly appearing in many people. And the majority chooses Germany. Why this country? It is easy to explain: Germany today is considered a very powerful developed state, which is distinguished by high quality, reliability, and low prices. That's why so many foreign investors are buying real estate here. Registration of real estate purchase is a quite labor intensive process, especially when it comes to buying real estate to a legal entity.
Acquisition of real estate to a legal entity - what does this mean?
Purchase of real estate can be registered to a natural person and a legal entity. The first option is most appropriate in the case when the cost of one or more apartments does not exceed 200 thousand Euros. And the second option is suitable if the amount of real estate you buy is much higher. In the latter case, purchased real estate must be pre-registered in Germany. Then the amount of purchased real estate will be the one that was deposited to the account as an authorized capital.
Acquisition of real estate to a legal entity is a rather complicated phenomenon and provides for a number of formalities, among which the main is the registration of a legal entity. Today, you can choose any form of legal entity. Among many types of legal entities, GmbH is the best for investor.
What is GmbH?
GmbH (Gesellschaft mit beschrankter Haftung, GmbH) is an organization similar to LLC (limited liability company), and is also a legal entity.
The possibility of establishing an organization is granted to one or more natural persons or legal entities. They can also include foreigners and persons who do not have citizenship. For the establishment of the GmbH, the members are required to sign a Founders’ Agreement. This document contains the following provisions:
- company name;
- official registered address and telephone number;
- types of business activities;
- amount of the authorized capital;
- distribution of shares between the founders;
- period of existence.
The procedure for establishing a GmbH normally lasts one day, and it provides:
- notarization of the Founders’ Agreement;
- opening a bank account for GmbH, to which the amount of the authorized capital will be deposited;
- company registration in the court.
The company can start running its business immediately after notarization of the Founders’ Agreement
About 60% of Germany's population lives in leased apartments or houses. This feature is due to the fact that Germany has a developed system of social security for the population. Thus, the state takes over the obligation to pay lease for housing for someone who cannot pay for the apartment. Thanks to this, the country is thriving in rental business. In addition, lease market is in detail legally regulated and has an organized form.
Directly the Germans themselves, willing to save their capital and have a permanent passive income, invest their savings in real estate. It is known that the Germans are pragmatists: apartments and houses are bought not only as a way of preserving capital. This real estate is leased, i.е. brings income.
We propose our investors to do the same and receive a monthly passive income of 6-15% per annum. Most of the objects we offer are sold with long-term lease agreements already signed. We also offer assistance in finding tenants for real estate purchased from us.
Besides, our investors obtain guarantees for receiving lease payments: the apartment can be insured against no rental income or property damage.
Support in closing deals
In order to independently buy real estate in Germany, at least three factors are required:
- knowledge of the language
- understanding of all the subtleties and nuances of local law, the procedure for re-registration of ownership, trends and features of the local real estate market
- knowledge of the management and maintenance of real estate
The process from inspecting the object to obtaining ownership of it, as a rule, can take 1-3 months. At this time dozens of events are held: checking the history of the former owner, studying the condition of the building itself, drawing up certificates from banks, checking utility bills, and many other things. All this requires a lot of time and money. Support on the part of professionals-advisers in closing deals has become a norm long time ago.
This allows avoiding unwanted losses, which are highly probable with insufficient knowledge of the specifics of buying and managing real estate abroad.
Our team are real estate and investment experts who have been living in Germany for over 16 years, who are well versed in the laws of Germany, the peculiarities and trends of the real estate market, taxation and lending, getting a residence permit/permanent residence card, business emigration, real estate management.
We build long-term relationships with our customers, because we use customized approach to preferences of each of them.
It is important and valuable for us that our customers be satisfied with their capital investment and our services at all stages of investing, including after-sales servicing. The investor needs only one day to come to Germany and sign the relevant documents. All the rest of the work will be done by our specialists
Key factor of the success of any investment is the availability of an investment strategy. BMG Invest GmbH company, depending on the objectives of the investor, the timing of the investment, amount of investment and the investor's individual situation, helps to develop the best possible investment strategy. Under this strategy, our specialists select the investment proposals and projects that are most suitable for the investor under the given criteria.
Main directions of the investment projects of the company that are most in demand among our customers are:
- investments in residential real estate;
- investments in commercial real estate;
- investments in ready-made business.
Investments in residential real estate are the purchase of apartments or profitable tenement houses. An apartment or tenement house brings a monthly passive income in the form of a lease payment on average 8-10% per annum. Also, the income can be got from the resale of the real estate object after a specific period of time.
What is the difference between investments in residential real estate in Germany from similar investments in other countries?
- stability and predictability of policy, economics and finance
- developed private property institution and detailed legislative regulation of construction norms, lease relations, activities of management companies, etc.
- equality between foreigners and German citizens when buying real estate in Germany
- prohibition at the legislative level of selling real estate objects with debts
- liquidity of real estate. Prices in the German market show a small but steady growth. And, according to analysts' forecasts, such growth is fundamentally justified
- affordable lending at a rate of 2.5-3.5% per annum, depending on the bank and the federal land. Buying profitable real estate with loan is an increase in the rate of return of such an investment project and in fact passing on the loan payments to the tenant
- ease of management of the investment project. Investor can entrust a special management company managing of the purchased real estate, which relieves from the necessity be constantly present in the territory of the country and saves time and money of the investor.
Investments in commercial real estate are considered more profitable and at the same time less reliable. For investors who prefer to invest in commercial real estate, we select projects, taking into account the location of the facility and the technical characteristics of the building. Also, the company's specialists analyze the profit in the long run and the histories of tenants.
Investments in a ready-made business abroad are not only the acquisition of new opportunities, profits and entry into new markets. This is an opportunity to protect some of their assets. Especially if this business is in Germany. In addition, the purchase of a ready-made business allows you to obtain a residence permit in the country with a law-abiding and hard-working population, a transparent legal and tax system. It's quite easy to buy a ready-made business in Germany, since the law allows the legal registration of the purchase and sale of commercial enterprises.