Buying, selling, managing, and renting property in Germany—with one legal point of contact familiar with both Israeli and German law, from locating the property through ongoing management and resolving tenant disputes.
Alon Kraus & Co. assists Israeli investors and property owners in Germany throughout every stage of a real-estate investment—from locating the right property, through the transaction before the German notary (Notar) and registration in the land register (Grundbuch), to ongoing management, expense accounting, communication with property-management companies (Hausverwaltung), and handling problematic tenants and eviction proceedings (Räumungsklage). We provide one multilingual point of contact in Hebrew, German, and English, reducing language and administrative barriers for the investor.
Buying, Selling and Sourcing Property
- Sourcing investment, residential, and commercial property — Assistance locating opportunities that fit the objective: ongoing yield, value improvement, owner occupation, or commercial use.
- Due diligence — Review of the property’s legal and planning status, the Grundbuch, debts, liens, and the rights of existing tenants.
- Assistance with the notarial transaction — Drafting and reviewing the purchase agreement (Kaufvertrag), representation in communications with the other party, and ensuring proper transfer and registration of title.
- Acquisition-tax considerations — Assistance concerning real-estate transfer tax (Grunderwerbsteuer), which varies by federal state, and planning the ownership structure, whether personal or through a company.
Property Management and Ongoing Accounting
- Remote property management for Israelis — Representing the owner before authorities, tenants, and service providers so that property in Germany can be held without residing there.
- Real-estate expense accounting — Tracking operating expenses, management fees, maintenance, and taxes, and preparing the records needed for tax reporting in Germany and Israel.
- Communication with property-management companies (Hausverwaltung) — Reviewing management reports and owners’ meetings (Eigentümerversammlung) and protecting the owner’s interests.
- Lease agreements — Drafting and reviewing rental agreements (Mietvertrag) under German law, including Mietpreisbremse restrictions.
Tenant Disputes and Eviction
- Problematic tenants — Handling rent arrears, contractual breaches, damage, and nuisance, including warnings and formal correspondence.
- Eviction proceedings (Räumungsklage) — Assistance with termination notices (Kündigung) and eviction proceedings before German courts.
- Debt collection — Steps to collect unpaid rent and compensation for damage.
Frequently Asked Questions About German Real Estate Investment
Can an Israeli buy property in Germany without German residency or citizenship?
Yes. Germany does not generally restrict foreign buyers, including Israelis, from purchasing real estate. The purchase is completed before a notary (Notar) and must be registered in the land register (Grundbuch). Bank-account arrangements, identity verification (KYC), and taxation in both countries should be considered.
What additional costs apply when buying property in Germany?
In addition to the purchase price, ancillary acquisition costs (Kaufnebenkosten) may amount to approximately 9%–12%. They include real-estate transfer tax (Grunderwerbsteuer), which varies by federal state, notary and registration fees, and sometimes brokerage fees. Figures may change and every transaction should be checked individually.
How can I manage property in Germany without living there?
An owner can appoint a representative and legal support to act with the property-management company (Hausverwaltung), tenants, and authorities. We arrange powers of attorney, review reports, and handle ongoing matters so the owner remains in control remotely.
What can be done if a tenant does not pay or refuses to leave?
German law protects tenants, so a structured process is required: a warning, termination notice (Kündigung), and, where necessary, an eviction action (Räumungsklage). Appropriate legal assistance can reduce delay and risk.
Is rent restricted by rent-control regulation?
Many cities apply the rent brake (Mietpreisbremse), which can limit the rent charged to a new tenant. Exceptions may apply, for example to new buildings or after substantial renovation. The rules for the specific location should be checked before setting the rent.
How is German rental income taxed for an Israeli owner?
Rental income from German property is taxed in Germany and may also need to be reported in Israel, subject to the Israel–Germany tax treaty, which is intended to prevent double taxation. Proper records of income and expenses should be maintained. This is not individual tax advice.
Should the property be held personally or through a company?
Each ownership structure has advantages and disadvantages concerning taxation, liability, and intergenerational transfer. The choice depends on the size and purpose of the investment. We consider the complete position in Israel and Germany before recommending a structure.
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The information on this page is general only and does not constitute legal, tax, or investment advice. Every matter requires individual review; figures and tax rates are accurate only as of the date written and are subject to legislative change. Questions involving core German law or German tax law are handled together with partner lawyers in Germany (Rechtsanwälte) and qualified German tax advisers (Steuerberater).