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.
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) gives 9 % × 8 years + 7 % × 4 years on 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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