Schwanenwerder from above: Island

This is it: the most exclusive island in Germany and Berlin. Of course, the properties here are also among the most expensive adresses in Berlin. Only 38 properties, and each one is of a higher caliber than the next. For many, Schwanenwerder is not a place to live, but a world of its own. Here is a quote from our last Schwanenwerder exposé:

“Privacy has become the rarest currency. This villa offers it in abundance.”

Schwanenwerder has exactly that. Located directly on the Wannsee, only one access road, shielded, lots of security. Pure nature, surrounded by a capital city with over 3.9 million inhabitants. Standing here, you completely forget that the hustle and bustle of Berlin is 20 minutes away. Ultra exclusive, ultra quiet.

History? My recommendation: Schwanenwerder, PDF Berlin.de (Download)

Nikolassee, Zehlendorf, Grunewald

On the way to Berlin Mitte, you automatically pass through the best locations. Nikolassee, Zehlendorf, Grunewald – all three have stood for prosperity, nature, old villas, embassies and long-established families for decades.

Did you know? The best areas are always in the southwest, because southerly winds from Europe often arrived there. In the past, this brought fresh air to the southwest and the exhaust air moved to the northeast. – But back to Schwanenwerder!

In the immediate vicinity, you will find residential areas, forests, parks and extremely quiet streets. Schwanenwerder itself is home to families, entrepreneurs and investors who want to live in complete seclusion despite living in the capital. No through traffic, no tourists, just absolute privacy.

Graft Villa: The most expensive villa in Germany

I have often stood here on the jetty and admired this villa, the most futuristic and expensive villa in Germany. There were many rumors – including that one of the former owners was Brad Pitt. Is that true? Who knows. But it shows the level we are at here. The villa was designed by Graft. It was last “listed”(off market) for 79 million euros.

• Price: ~ 79 million euros

In fact, it is not the only villa in this segment. Other properties on the island would also easily reach asking prices of 55-60 million euros. And right next to this ultra-modern villa is the Schwanenhof – the oldest villa on the whole of Schwanenwerder. It could hardly be more historic.

Even the major media regularly report on this island:

• Schwanenwerder – Picture
• Schwanenwerder – Tagesspiegel

Schwanenhof: The first villa on Schwanenwerder

The Schwanenhof impresses with its historic gate – who still has something like that today? Behind it is a small, I would say Mediterranean wonder. Lots of charm, lots of history, all completely hidden behind trees. No views from outside, zero through traffic. A real original on the island.

• Price: ~ 9 million euros

Schwanenwerder Map

Schwanenwerder in Berlin:

Schwaenwerder from close up:

Schwanenwerder history

To this day, the island feels like a piece of secluded Berlin, quiet, green and with architecture that is rarely found in this form. To understand the house, you have to go a little further: How did Schwanenwerder come about in the first place, who built the first villas here and why in this location of all places?

Source: Schwanenwerder, PDF Berlin.de (Download)

How the island became an island in the first place

At the end of the 19th century, Schwanenwerder was just an inconspicuous spot in Wannsee. Not a paradise, not a villa suburb – rather an idea. Friedrich Wilhelm Wessel, a Berlin building contractor, had this idea. He bought the site, had it filled in, shaped and defined a concept: large plots of land, plenty of space, peace and quiet, no noisy uses. Schwanenwerder was to become a place of retreat, an alternative to the growing city.

• Island was artificially formed
• Parceling out by Wessel
• Concept: peace & privacy

The first houses: who built them and why

The first villas on Schwanenwerder were not built by chance. Wessel obliged buyers to build high-quality houses within a short space of time. He did not want a mixed-use area, but a cohesive, stylish ensemble. To achieve this, the owners brought in some of the best architects of their time. Paesler & Natho designed early country houses with turrets, bay windows and French forms. Bernhard Sehring – one of Berlin’s most sought-after architects – designed striking villas with great attention to detail. He was later joined by Bruno Paul and Richard Blumberg, both known for their elegant, tranquil architecture. The gardens were planned by garden artists such as Rudolf Jürgens and Ludwig Lesser. Each villa was to be a small work of art.

• First villas by Paesler & Natho
• Sehring & Bruno Paul shape style
• Garden art by Lesser & Jürgens

The Schwanenhof: a country house with a French touch

The Schwanenhof was built around 1900, precisely during this period. The house followed the French late baroque style: two small tower domes, curved lines, a large terrace with a view of the lake. It was a representative but not overloaded country house. The first plans show a house that was very open – large windows, lots of light, a garden that was more of a park than a plot of land.

• French late baroque
• Large terrace
• Open floor plans

The atmosphere on the island: summer houses and retreats

Around 1910/1920, entrepreneurs, merchants and bankers lived here. Many used their houses as summer residences. Silence over the water in the morning, company on the terraces in the evening, with gardeners, boats and long garden paths in between. The Schwanenhof was part of this: not a palace, but an elegant, quiet house, built for people who wanted to get away from city life.

• Summer houses
• Large gardens
• Elegant architecture

Conversions and changes over the decades

The Schwanenhof has undergone many changes over the years. The tower dome on the north side was destroyed during the Second World War and never rebuilt. The attic was extended in the 1950s and new living spaces were added later. In the 1990s, a modern south-facing extension was built, extending the house and adapting it to today’s living requirements. The garden hall was closed, paths were newly laid out, some historical details were lost, others were maintained.

• Reorganization 1950s
• Extensions 1990s
• Partial redesign

Garden, location and view: What makes Schwanenwerder special

Even though a lot has changed, one thing has always remained the same: the location. The view over the Wannsee, the distance to the neighboring houses, the greenery. The garden has been redesigned several times – sometimes spacious and playful, later clearer and more modern. Today, the Schwanenhof is a mixture of historical substance and contemporary elements. You can recognize the origins, but you can also see the development.

• Lots of green
• View of the Wannsee
• Modern garden design

More about the Schwanenwerder story? Recommendation

History? My recommendation: Schwanenwerder, PDF Berlin.de (Download)

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What does the 1.5 percent figure mean?

How to inherit, what to do? It’s not for nothing that inheritance tax is also known as the“stupid tax“. In other words, anyone who doesn’t deal with it is stupid. Why? You can see that very quickly here: €30 million becomes a tax burden of just €1.5 million.

The 1.5 percent is not a statutory tax rate, but an effective average that can result from very large company inheritances. It arises when exemption rules for business assets, deferrals and, in some cases, waivers come together. As a result, only a small part of the estate value is taxed at all.

Here is a concrete example calculation that shows how the effective tax rate falls from 30% to just 1.5% for a 100 million euro company inheritance. Extra short, so it’s easy to understand.

1st starting point – without benefits

Statutory rate: 30 %

Calculation:
€ 100 million × 30 % = € 30 million tax
→ Effective tax burden: 30 %

2. relief discount (85 % standard relief)

The Inheritance Tax and Gift Tax Act (ErbStG) allows 85% tax exemption for business assets if the business is continued for at least 5 years.

Calculation:
100 million × 15% = € 15 million taxable
15 million × 30 % = € 4.5 million tax
→ Effective tax burden: 4.5 %

3. option exemption (100% exemption possible)

Anyone who undertakes to continue the company for 7 years and not to reduce the payroll significantly can even apply for 100% tax exemption.

Calculation:
€ 100 million × 0 % = € 0 tax
→ Effective tax burden: 0 %

4. combination of structuring & deferral

In practice, there is often a mixture:

• Parts of the assets are outsourced to holding structures.
• Tax payments are deferred without interest for 7 years.
• The tax can be partially waived in the case of a “needs test“.

That means:

Real effect:
Instead of € 4.5 million, the tax office often only receives € 1.5 million.
→ Effective tax burden: 1.5 %

5. overview of the calculation

Here is an overview:

In short: you only pay €1.5 million in taxes this way

Legally, the state could demand €30 million. In reality, the company heir often only pays € 1.5 million due to tax exemption regulations, holdings and deferrals.

End.

In case you’re wondering… no family foundation involved?

The 1.5 % from the SPIEGEL article comes about without a family foundation – solely due to the statutory exemption of business assets. A family foundation can have a supplementary effect, but is not the reason for this figure.

A family foundation, on the other hand, is an independent structuring instrument. It can also be used for tax optimization, but in a different way:

• With a family foundation, assets can be transferred before inheritance.
• This allows inheritance tax obligations to be avoided or deferred.
• However, different rules apply here: Inheritance tax is payable, but with a time lag (e.g. every 30 years).

In combination with business assets, a family foundation can be used to save additional tax, but this is a separate strategy.

Learn more about the:

• Family foundation

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How does inheritance tax work in Germany?

Inheritance tax (together with gift tax) regulates what goes to the tax authorities when assets are transferred. The decisive factors are tax brackets, allowances and types of assets that benefit. Important: Gifts count – and you can utilize many allowances every ten years. This allows you to plan over time and distribute assets cleverly.

• Legal basis: ErbStG + valuation law
• Tax classes I-III depending on relationship
• Allowances: e.g. € 500,000 (spouse), € 400,000 (children)
• Ten-year rule for gifts
• Benefits: Business assets, family home
• Progressive tax rates depending on class & level

Helpful links & sources:

• Federal Ministry of Finance – Inheritance and gift tax
• §Section 16 ErbStG Allowances
• Wikipedia: Inheritance tax in Germany

Tax brackets & allowances: The basic buffer

The tax class depends on the proximity to the testator. In class I (spouses, children, grandchildren), the tax-free amounts are significantly higher than in class II (e.g. siblings) and III (unrelated third parties). In addition, there are special pension allowances (e.g. for spouses). Result: A large proportion of normal inheritances already remain tax-free due to allowances. Only the surplus is taxable.

Family home & deferrals: Protection for your home

The owner-occupied family home can remain tax-free if acquired by a spouse or children under certain conditions (e.g. continued use, holding periods). In the case of real estate or companies, a deferral is also possible if the tax payment would otherwise jeopardize the assets. This provides time for financing or restructuring without having to sell immediately.

• §13 ErbStG Family home
• Family home information sheet (NRW)

Business assets: tax exemption of 85% or 100%

In the case of an inherited business, the standard exemption (85%) or the option exemption (100%) applies if the requirements are met (payroll, holding periods, administrative asset ratios). This is politically desirable: company successions should secure jobs and not fail due to the tax burden. For large estates, this is THE lever for tax reduction.

• IHK Munich: Business assets and tax exemptions

Erbe & Nachlass

Why do you save when you inherit a lot? … and how?

Large inheritances systematically take advantage of preferential treatment. Assets are structured in such a way that as much as possible falls into favored “drawers”: business assets, residential property (family home), usufruct concepts and deferred gifts. This lowers the assessment basis – and therefore the effective tax rate. Studies and government responses show: On average, major heirs often only pay low single-digit percentages.

• Effective load often only a few percent
• Reason: Exemption + allowances + design
• Gift instead of inheritance (time plays for you)
• Usufruct: transfer values, retain use
• Foundation solutions & family divisions
• Protect substance: Deferral/partial payments

Helpful links & sources:

• Süddeutsche Zeitung – Inequality through inheritance tax
• ZEIT – Large heirs pay less
• Wikipedia: Tax statistics on inheritances

Real estate GmbH: strategically shifting the tax burden

Many families rely on a so-called Immobilien-GmbH, especially for large real estate assets. Real estate is transferred to the business assets. The advantage: company shares often benefit from exemption rules of up to 85% or even 100%. In addition, shares can be transferred in stages over generations – often combined with gifts and usufruct rights.

Family foundation: Permanent tax optimization

A family foundation pools assets and ensures continuity over generations. As the foundation does not die, there is no traditional inheritance tax. Instead, lower current taxes apply. This model is often used for assets in the double-digit million range in order to secure long-term substance and avoid high one-off charges.

Designing with time: utilizing the ten-year cycle

If you start early, you can distribute assets via gifts at ten-year intervals. This allows you to increase your tax-free allowance several times. Example: A parent can transfer €400,000 tax-free per child every ten years – with two children, that’s €800,000 per round. Over 20 or 30 years, this results in a very high tax-free transfer without inheritance risk at the end.

Usufruct & residential rights: Give away value, keep control

With a reserved usufruct , you transfer a property, for example, but secure rental income or the right of use. This reduces the tax value of the gift because the capital value of the usufruct is deducted. You remain financially secure – and at the same time make more efficient use of tax-free allowances.

Why “stupidity tax”? Planning mistakes cost real money

If you don’t plan at all, you give away allowances, lose exemptions (e.g. due to failure to meet deadlines) or slip into higher rates due to an unfavorable structure. Advice helps to close gaps: from the structuring of matrimonial property regimes to wills, division arrangements and pre- and post-inheritance through to foundations. The difference between “doing nothing” and “smart planning”: often tens of thousands to millions.

50 million € inheritance Example calculation + tax optimization

Der Spiegel reports: “Rich company heirs often only pay 1.5% tax”. Is that possible? Yes. Clever planning reduces the tax burden. Without planning, you quickly pay almost €15 million in tax on a €50 million inheritance. With clever planning, the tax burden falls to 1-5%. Studies, laws and examples clearly show that those who optimize early on save millions. This is precisely why inheritance tax is often referred to as the “stupid tax”.

• 50 million € inheritance Example calculation

Avoid inheritance tax? My conclusion

You can rarely avoid tax completely – but you can manage it. The key: start early, stagger gifts, qualify beneficiary asset types, comply with holding and payroll rules and use the family home correctly. The greater the assets, the greater the leverage – and the more expensive mistakes become. Get tax and legal advice in good time, document everything properly and plan in variants (inheritance, gift, foundation). This will turn the “stupid tax” into an avoidable cost trap – and you will get more out of your inheritance.

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Townhouse with rooftop terrace in Berlin-Mitte

The townhouse combines modern architecture with timeless luxury and maximum privacy. The light-flooded rooms extend over four floors and offer individual design options – from prestigious living areas to retreats with maximum comfort. The private roof terrace crowns this unique property offer.

• Now new in Villa & Townhouse Berlin

Exclusive living on four levels

The townhouse offers spacious, open floor plans, elegant design elements and high-quality fittings. Fine materials, floor-to-ceiling windows and modern smart home technology create a living ambience of the highest standard. The rooftop terrace is the perfect place for exclusive events or relaxing evenings above the rooftops of Berlin.

• Around 400 m² living space
• Four luxurious floors
• Private rooftop terrace

Berlin-Mitte: Living in the exclusive government district

Berlin

Berlin-Mitte is one of the most sought-after residential areas in Germany and offers a unique combination of history, modernity and internationality. Between embassies, ministries and exclusive boutiques, a residential environment is emerging that is unparalleled anywhere in the world. Demand for high-quality real estate is particularly high here, while supply remains very limited.

The advantages of this location

With direct access to the government district, cultural highlights and a wide range of restaurants, this location is one of the most exclusive adresses in Berlin. The combination of privacy, central location and urban lifestyle makes townhouses here particularly stable in value and attractive for investors.

• Prestigious location in the heart of Berlin
• Rooftop terrace with exclusive view
• Limited supply, high demand

Your real estate consultant for Berlin-Mitte

The purchase of an exclusive townhouse requires discreet advice, comprehensive market knowledge and individual support. As real estate consultants, we accompany you every step of the way – from initial contact to completion. Benefit from our expertise in the premium segment and discover your perfect townhouse in Berlin-Mitte.

Would you like to find out more? Write to us or give us a call:

• Contact us

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Buying a townhouse in Berlin-Mitte

The townhouses on offer combine timeless architecture with state-of-the-art living comfort. With over 500 square meters of living space on five levels, they offer space for the highest demands – ideal for families, representation or art collectors. Generous window fronts, fine materials and luxurious furnishings create a unique living experience in the heart of Berlin.

• Now new in Villa & Townhouse Berlin

Luxury on five floors

The townhouses impress with their well thought-out room layout, light-flooded living areas and exclusive details. The master bedroom with a view of the greenery, elegant marble bathrooms and spacious gallery areas underline the high standards. Here, timeless elegance meets state-of-the-art furnishings.

• Over 500 m² living space
• Five luxurious floors
• More than 15 rooms

Berlin-Mitte: Living in the government district

Berlin

Berlin-Mitte is one of the most exclusive residential areas in Germany. The government district is surrounded by historic buildings, first-class restaurants and a world-class cultural scene. Demand for high-quality real estate is particularly high here – and supply is correspondingly limited.

Advantages of this location

The combination of central location, architectural quality and urban lifestyle makes townhouses in Berlin-Mitte unique. Owners benefit from high value stability and an internationally sought-after environment. Few properties offer comparable privacy with direct access to the political and cultural center of the city.

• Exclusive location in the government district
• Limited supply, high demand
• High performance and prestige

Your real estate consultant for Berlin-Mitte

Buying an exclusive property requires experience, market knowledge and discretion. As real estate consultants, we accompany you personally every step of the way – from the first meeting to the final handover. Benefit from our expertise in Berlin’s premium segment and find the perfect townhouse or villa in Berlin-Mitte.

Would you like to find out more? Write to us or give us a call:

• Contact us

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