Heritage Leipzig — buy-to-let
- Purchase price€220,000
- Refurbishment share€140,000
- Equity€75,000 (34 %)
- Bank loan€145,000
- IncomeCHF — CH company
- Heritage AfA §7i100 % / 12 yrs
- Example rate4.3 %
Model calculation, no guarantee.
Non-residents · buy-to-let
German buy-to-let for non-residents
Residence abroad and still investing in German property as a non-resident — heritage depreciation, QNG and existing stock remain open. A specialist choice of banks. Loan-to-value typically 60–70 %.
Can I invest in a German buy-to-let property as a non-resident?
Yes — living abroad, you can still invest in German buy-to-let property as a non-resident; historic-building depreciation (§7i), QNG new-builds and existing stock all remain open. German rental income falls under limited tax liability, and the building depreciation works just as it does for residents. The difference is the financing: not every bank lends to a borrower resident abroad, and loan-to-value limits are often lower than for residents. So the specialised choice of lender decides whether the case happens at all — not the rate. Also important are a clean separation of capital-raising and purchase, and proof of foreign income. Which lenders underwrite non-resident buy-to-let, and up to what loan-to-value, we clarify in conversation, not on the page. Not legal or tax advice.
Why German buy-to-let is attractive as a non-resident
If you live abroad as a German citizen, or want to invest in Germany as a non-resident, a let buy-to-let property is often the better fit than owner-occupation:
- Tax liability in Germany only on the rental income — limited tax liability §49 EStG. The depreciation benefits are retained.
- Rent payments largely cover the instalment — a cash-flow-oriented investment
- Inflation protection and wealth building in a stable currency (EUR)
- A later return option: on returning to Germany, owner-occupation is possible
Tax and depreciation
Which depreciation models apply to non-residents
- Straight-line depreciation: 2 % (built from 1925) or 2.5 % (built before 1925) — applies to all owners, including those living abroad
- Heritage depreciation §7i: 100 % of the refurbishment share over 12 years — also applies with residence abroad if there is tax liability in Germany
- Special depreciation for existing stock §7b: 5 % × 4 years for new rental flats meeting EH-55 — applies to non-residents with limited tax liability
- QNG new-build special depreciation: still possible within §7b, plus regular straight-line depreciation
For non-resident buy-to-let, limited tax liability in Germany is the prerequisite. Involve tax advisers in both countries — I do not provide tax advice.
Financing structure
How a non-resident buy-to-let is financed
- Loan-to-value: typically 60–70 % for non-residents, sometimes 80 % with very strong credit
- Equity: 30–40 % + incidental costs (transfer tax, notary, land register)
- Pool of banks: 6–10 banks active, depending on country of residence and income
- KfW funding: limited for non-residents — KfW 261 (energy refurbishment) is possible case by case; KfW 297 for owner-occupation does not apply
- Tranche payout for refurbishment properties — as with heritage financing for residents
Model calculations
Residence Switzerland · CHF
Residence USA · USD
Example financings
Condo Hamburg — buy-to-let
- Purchase price€355,000
- Equity€130,000 (37 %)
- Bank loan€225,000
- IncomeUSD — US company
- Conversion rightNo (USA not in EU)
- Example rate4.4 %
- Monthly payment~€1,230
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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