Well-paid newcomers with a Blue Card or another residence permit — and a high marginal tax rate. Exactly the clientele that heritage depreciation (Denkmal-AfA) and QNG new builds are made for. Yet hardly anyone does this specifically for expats. This case runs as a buy to let mortgage — financed as an investment, not owner-occupied.
Yes, for an investment property a temporary permit is a checkpoint, not a knock-out. The bank looks at the type of permit and its remaining term, how long you have been employed in Germany, proof of income and the equity covering the purchase costs. Some lenders formally require permanent residence; others go by credit standing and lettability.
Expat buy to let works with a temporary permit — banks treat it as a checkpoint, not a knock-out.
Expat buy to let: why a high marginal tax rate makes it a lever: A high marginal tax rate turns heritage depreciation (Denkmal-AfA) and QNG new builds into a lever — financed as an investment, not owner-occupied. Few brokers set this up specifically for expats. German property as an investment.
Three: a Denkmal-AfA period building (60–80% refurbishment share, maximum tax saving), a QNG new build (KfW 297/298: subsidised interest up to €150,000 per unit, no repayment grant), or §7b special depreciation (5% × 4 years for new rental flats at EH 40 with QNG certificate).
Most advisers recommend that expats buy a home to live in. In a typical situation — a well-paid job, a temporary residence permit, a family not yet sure whether Germany is for good — a let buy-to-let property is often the better fit:
Three routes are open: a heritage Denkmal-AfA property, a QNG new build and a new build with special depreciation (§7b).
Special depreciation §7b (New build): EStG: 5 % × 4 years special depreciation for newly built rental flats meeting EH 40 with the QNG certificate (construction costs max. €5,200/m², assessment base max. €4,000/m²).
Denkmal-AfA property (Heritage): A refurbished period building in Leipzig, Dresden, Cologne, Wiesbaden or Berlin. 60–80 % refurbishment share. Maximum tax saving at a high marginal rate.
QNG new build (QNG): Climate-friendly new build with a QNG certificate. KfW 297/298 as a subsidised-interest loan of up to €150,000 per unit — no repayment grant. Low incidental costs, strong rental demand.
A simplified illustrative example — not a binding calculation:
Assumptions (guide figures, individually different): Blue Card holder, gross salary €90,000, marginal tax rate 42 % incl. solidarity surcharge, very strong credit. Buy-to-let heritage property in Leipzig, purchase price €280,000, of which a 70 % refurbishment share = €196,000 assessment base.
Calculation (simplified):
Heritage depreciation years 1–8: 9 % × €196,000 = €17,640 · tax saving approx. €7,400 per year; With 100 % purchase-price financing, payment approx. €950/month; Rental income approx. €750/month; → effective burden after the tax saving in years 1–8: close to zero or slightly positive.
Please check individually with a tax adviser. This is not tax or investment advice.
| Item | Amount |
|---|---|
| Purchase price | €175,000 |
| Refurbishment share | €80,000 |
| Equity | €40,000 |
| Bank loan | €215,000 |
| Residence status | Blue Card |
| Heritage AfA §7i | 100 % / 12 yrs |
| Cash flow after tax | positive from year 2 |
Model calculation, no guarantee.
| Item | Amount |
|---|---|
| Purchase price | €320,000 |
| Equity | €80,000 |
| KfW 298 | €150,000 / 0.91 % |
| Bank loan | €90,000 |
| Residence status | Blue Card |
| Total payment | ~€1,200 |
| Rental income | ~€1,300/month |
Model calculation, no guarantee.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
If you are liable to tax in Germany and have a high marginal tax rate (from approx. 42 %), heritage depreciation or special depreciation for existing stock can be very attractive — the tax saving markedly lowers the effective monthly burden. we run the numbers for your case individually.
Yes — the §7i depreciation is tied to tax liability, not to citizenship. If you are liable to tax in Germany (which is practically always the case with a Blue Card residence in Germany), heritage depreciation applies just as it does for any other resident taxpayer.
The property stays your own — even after you move your residence abroad. You are then subject to limited tax liability in Germany on the rental income and any capital gains. The ongoing financing can continue; a change of bank is usually not needed. Sister page: non-resident situation.
A no-obligation first consultation is free — the commission is, as a rule, paid by the bank. we check 650+ banks plus all state subsidy programmes for your situation.
KfW 297/298 as a subsidised-interest loan of up to €150,000 per unit — no repayment grant.
Residence permit Germany and a mortgage: how banks assess a temporary permit versus a settlement permit, and what the term means.
International mortgage broker under § 34i GewO: German property finance for expats, Germans abroad and cross-border workers, in four languages.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.