Anyone who wants to invest 10 million euros faces a different task than the average investor. At a conservative interest rate of 3.5 percent, 10 million euros generate 350,000 euros in interest income per year – real estate with a 4 percent rental yield brings in 400,000 euros. But the real question isn’t: how do I maximise the return? Rather: how do I permanently protect this wealth from inflation, taxes and concentration risk?
Family office structures: economically sensible from around 10 million EUR
The goal of a serious strategy: combine at least 3–4 asset classes, don’t weight any single class above 40% – and consider tax optimisation from the start.
Why real estate is particularly attractive at 10 million euros
Real estate is more attractive for large fortunes than for small ones, for three reasons:
1. Leverage effect
With 10 million euros of equity, you can build a portfolio worth 25 million euros with 60% debt financing. The rental yield then applies to the total volume, and the profit stays with the equity. At 4% rental yield on 25 million = 1 million EUR/year in income – on 10 million equity, a real return on equity of 10%.
2. Tax advantages
Real estate offers unique tax instruments: depreciation (AfA) of 2–3% p.a. on the building value permanently reduces the tax burden. Listed heritage properties allow 9% AfA over 8 years. After a 10-year holding period, speculation tax no longer applies at all. When held in a GmbH or holding structure, profits from the sale of real estate are effectively taxed at only 1.5% (§8b KStG).
3. Inflation protection through tangible assets
Real estate is a tangible asset. During inflationary phases, rents and purchase prices rise, while the real value of capital in bank accounts falls. Anyone who parks 10 million euros exclusively in fixed-term deposits loses in real terms – anyone who holds real estate gains through rent increases and value appreciation.
Distribution across 10–15 condominiums in A and B cities. Advantage: risk diversification, individually saleable, manageable. Disadvantage: high administrative effort, tenant risk per unit. Typical return: 3–5% net.
Apartment buildings
2–4 apartment buildings in stable locations. Advantage: scalability, professional property management possible, favourable purchase price factor. At a factor of 20 and 300,000 EUR annual rent = 6 million EUR purchase price. Recommended for investors who want to outsource management. Details: buying an apartment building: process, costs and taxes.
Commercial properties
Offices, logistics, retail – higher return (5–7%), longer lease terms (5–10 years), but stronger dependence on the economic cycle. From 10 million EUR, individual commercial properties in B-locations are directly financeable. Detailed overview: buying commercial property: guide.
Overseas properties
Spain, Portugal, Austria, Dubai – tax advantages, currency diversification, but more complex management and different legal systems. A maximum of 15–20% of the total portfolio is recommended.
Comparison table: asset classes at 10 million euros
Asset class
Return p.a.
Liquidity
Tax advantages
Risk
Real estate (direct)
4–8% (total return)
Low
High (AfA, speculation period)
Medium
Shares / ETFs
6–9% (historical)
Very high
Low
Medium–high
Bonds (investment grade)
2.5–4%
High
Low
Low
Fixed-term deposit (3 years)
2.5–3.5%
Low
None
Very low
Private equity
12–20% (target)
Very low
Medium
High
Gold / commodities
1–3% real
High
None
Medium
All return figures are indicative. Actual results depend on timing, selection and market conditions.
Risk diversification: the 10-million formula
A proven allocation for very wealthy investors:
40% real estate (4 million EUR) – direct investments + possibly real estate funds
30% shares/ETFs (3 million EUR) – globally diversified, MSCI World + EM + sectors
15% bonds (1.5 million EUR) – A-rated government bonds + corporate bonds
Optimising taxes: the three most important instruments
Speculation period for real estate
Anyone who holds a property for more than 10 years pays no income tax on the capital gain. With a profit of 1 million EUR, that corresponds to a tax saving of 420,000–450,000 EUR (42% + solidarity surcharge). No other investment instrument offers this tax-free exit for private individuals.
Depreciation (AfA)
The straight-line AfA is 2% for buildings from construction year 1925 and 3% for new builds from 2023. With a building value of 2 million EUR = 60,000 EUR tax-deductible per year. Listed heritage properties: 9% (8 years) + 7% (4 years) = significantly higher tax savings. More on this: real estate as a capital investment: return and tax.
Holding structure
From around 5 million EUR of real estate assets, it’s worth examining a GmbH & Co. KG or a pure real estate GmbH. Advantages: sale profits between affiliated companies can remain tax-free (§8b KStG), and inheritance and gift tax can be significantly reduced through usufruct, gifting of shares or foundation solutions.
Typical mistakes with assets over 10 million euros
Concentration risk: everything in one property or one market. In 2022, real estate values fell 20–30% in some locations.
Liquidity trap: too much in illiquid assets – if liquidity is needed short-term, expensive forced sales are the result.
Tax optimisation too late: holding structures must be set up before purchase, not after the sale.
Ignoring fees: 1% management fee on 10 million EUR = 100,000 EUR/year. Check the fee structure carefully.
Advisors with conflicts of interest: bancassurance advisors earn from products, not from the client’s wealth growth.
Underestimating inflation: 3% inflation destroys 2.6 million EUR of purchasing power on 10 million EUR over ten years.
When does an advisor make sense?
An independent wealth advisor (fee-only, not commission-based) is worthwhile from around 2 million EUR. At 10 million euros they are practically indispensable – not because of the complexity of the market, but because of the tax, inheritance-law and structural questions. Pay attention to:
Fee transparency: hourly rate or flat fee, no hidden commissions
Independence: not tied to banks or insurers
Specialisation: experience with HNWI (High Net Worth Individuals)
For real estate investments in the premium segment, Lukinski offers discreet advice and access to off-market properties – from Berlin apartment buildings to commercial portfolios. Further reading: buying property: process, costs and tips.
FAQ: investing 10 million euros
How much return is realistic with 10 million euros?
Depending on risk profile and mix: 4–7% p.a. total return after costs is realistic with a broadly diversified portfolio. That corresponds to 400,000–700,000 EUR of annual income.
How much interest does 10 million euros earn on call deposit?
At current 2.5–3.5% call deposit rates (as of 2025): 250,000–350,000 EUR per year – before tax. Call deposits should make up no more than 5–10% of the portfolio.
Real estate or ETFs for 10 million euros?
Not either/or – both. Real estate offers tax advantages and leverage, ETFs offer liquidity and global diversification. A combination (40/30) achieves more stable results than a single solution.
From when is a real estate GmbH worthwhile?
From around 5–10 million EUR of real estate assets. The setup costs (5,000–20,000 EUR) are amortised through the tax savings already on the first sale. Always check with a tax advisor.
What are the biggest risks with 10 million euros?
Concentration risk, liquidity trap and inflation. The main task of large fortunes is not maximising returns, but preserving value across generations.
