Heritage flat Leipzig — buy-to-let
- Purchase price€175,000
- Refurbishment share€80,000
- Equity€40,000
- Bank loan€215,000
- Residence statusBlue Card
- Heritage AfA §7i100 % / 12 yrs
- Cash flow after taxpositive from year 2
Model calculation, no guarantee.
Expats in Germany · buy-to-let
Buy-to-let property for expats in Germany
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.
Will a German bank finance a buy-to-let if my residence permit is temporary?
Yes — a temporary permit is a checkpoint, not a knock-out. The bank looks at the type of permit and its remaining term, at how long you have been employed in Germany, at proof of income and at the equity covering the purchase costs. Some lenders formally require permanent residence; others go by credit standing, the property and its lettability. A refusal from the bank that pays your salary therefore says little about whether the purchase can be financed — it says something about that bank's credit policy. The second point is the property itself. On a listed building undergoing refurbishment, §7i EStG writes off the refurbishment share at 9 % for eight years and 7 % for four. That is the full amount within twelve years, precisely while a relocation income is taxed at its highest. That is why a let property comes before a home of your own here.
Strategy
Why buy-to-let instead of a home of your own?
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:
- Tax leverage: heritage depreciation (§7i EStG) applies to the refurbishment share. At a 42 % marginal tax rate and a 70 % refurbishment share this reduces the net cost considerably.
- Mobility: if your plans change, a let property is easier to sell or keep than an owner-occupied home.
- Liquidity: the ongoing rent largely covers the monthly payment — your own cash flow stays intact.
- Inflation protection: tangible assets have historically held up as inflation protection.
- Wealth building: repayment builds equity while tenants fund the bulk of the payment.
Concrete models
Three routes for expats
Heritage
Denkmal-AfA property
A refurbished period building in Leipzig, Dresden, Cologne, Wiesbaden or Berlin. 60–80 % refurbishment share. Maximum tax saving at a high marginal rate.
View detail page → QNGQNG new build
Climate-friendly new build with a QNG certificate. KfW 297/298 with a repayment grant of up to 25 %. Low incidental costs, highest rental demand.
View detail page →
Existing stock
Special depreciation §7b
EStG: 5 % × 4 years special depreciation for new rental flats meeting the EH-55 standard. A lower assessment base, but easier to find.
Worked example
What a financing can look like
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.
FAQ
Frequent questions
Is buy-to-let in German property worth it as an expat?
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. I run the numbers for your case individually.
Can I get heritage depreciation as a Blue Card holder?
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.
What happens to the property if I leave Germany?
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.
Model calculations
Blue Card · heritage Leipzig
Blue Card · QNG Hamburg
Example financings
QNG new build Hamburg — buy-to-let
- Purchase price€320,000
- Equity€80,000
- KfW 298€150,000 / 0.91 %
- Bank loan€90,000
- Residence statusBlue 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.
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