Villas & high-rises: Living on the Main, Annastrasse & Co.

With a population of about 750,000 and an area of almost 750 square kilometers, Frankfurt am Main is one of the important German metropolises. As one of the most imposing German cities, the Hessian metropolis of Frankfurt is in no way inferior to the other cities of Berlin, Hamburg and Munich. The standard of living is high and the economy stable. While students appreciate the colorful nightlife, the strong banking and financial sector attracts mainly entrepreneurs and investors here. Thus, not only apartments in the city center are popular here, but also villas and single-family homes on the outskirts of the city. Those who want to buy an apartment or a house have to dig deep into their pockets.

List: The most expensive places & streets

Before we take a closer look at the individual streets in Frankfurt am Main, we will now give you an overview of the most expensive streets in the Main metropolis. The purchase price per square metre is between €10,000 and €14,000.

• Anna Street
• Siesmayerstrasse
• Holzhausenstraße
• Deutschherrnufer

Anna Street

Annastrasse is one of the most expensive streets in Frankfurt am Main. At around €11,000/sqm, it is among the top 20 streets in Germany. The popular street is located in the Nordend-West district of the Hessian city. Located directly at the Holzhausenpark, one villa is more beautiful than the other. With just 25 house numbers, the street impresses with a quiet yet central location.

The price per square meter here is 11.000€ /sqm

Maximum price up to 11.000€/ sqm

Here you will find top adresses like:

• Adolph von Holzhausen Park
• Golf club (nearby)

Map and location of Annastrasse (Frankfurt am Main)

See for yourself and explore the Annastrasse in a virtual way.

Streetview Annastraße

Siesmayerstrasse

Siesmayerstraße is located in the popular Westend district of Hamburg. The palm garden of the city of Frankfurt am Main stretches almost the entire length of the street. The botanical garden includes a blooming nature, a tropicarium, the palm house, a medicinal plant house and numerous leisure and play facilities for children. This makes the Siesmayerstraße particularly suitable for families.

The price per square meter here is 10.000 Euro€ /sqm

Maximum price up to 10.000 Euro€/ sqm

Here you will find top adresses like:

• Palm Garden
• Tropicarium
• Botanical gardens

Map and location of Siesmayerstraße (Frankfurt am Main)

See for yourself and explore the Siesmayerstrasse in a virtual way.

Streetview Siesmayer Street:

Holzhausenstraße

Holzhausenstraße is located in the Nordend district and is considered one of the top adresses when it comes to beautiful living in Frankfurt. Here you will find numerous listed buildings and large villas.

The price per square meter here is 12.500€ /sqm

Maximum price up to 12.500€/ sqm

Map and location of Holzhausenstraße (Frankfurt am Main)

See for yourself and explore the Holzhausenstrasse in a virtual way.

Streetview Holzhausenstraße (Frankfurt am Main)

Deutschherrnufer

Deutschherrnufer is located in Frankfurt’s Sachsenhausen-Nord district. Situated directly on the southern bank of the Main, it is a popular and above all modern residential location with a great view for which a lot of money is paid.

The price per square meter here is 13.850€ /sqm

Maximum price up to 13.850€/ sqm

Here you will find top adresses like:

• Main Plaza: Hotel and Apartments
• European Central Bank
• Frankfurter Rundschau

Map and location of Deutschlandherrnufer (Frankfurt am Main)

Get a picture for yourself and explore the Deutschlandherrnufer in a virtual way.

Streetview Deutschlandherrnufer:

Frankfurt am Main: Real estate in the financial metropolis

Frankfurt is definitely the most impressive German city. If you stand in the Frankfurt city center, you drive in here, the skyscrapers are something very impressive. This makes the city seem twice as big as Berlin, three times as big as Munich and four times as big as Cologne. The attractive location directly on the Main and in the centre of Central Europe continues to attract people from all over Germany and the world to the city. Frankfurt a.M. is known for its unique skyline, skyscrapers and a thriving financial market. But the city offers so much more. Museums, green spaces, the opera, art halls. Culture as far as the eye can see.

Real estate in Frankfurt

With its opera, theatres and museum mile, Frankfurt has everything that high culture needs. In addition, a decent gastronomy scene, which in terms of internationality has no comparison in the world. There are beautiful parks in the city, as well as the zoo and the Palmengarten, so that you don’t have to leave the city for a short rest. The banks of the Main River invite you to stroll along, in addition to the chic shopping galeries. The skyscrapers are also an attraction in themselves. And if you visit one of the numerous festivals in the summer, it’s hard to get away from the view of the skyline.

• Real Estate Frankfurt

Living in Frankfurt am Main: Popular districts & residential areas

With a population of less than one million, the metropolis in the Rhine-Main region is known worldwide and is home to Germany’s second largest airport. No wonder, after all, Frankfurt is considered an attractive place to live. While the up-and-coming Gallus convinces with its hip flair and excellent location, the Westend and Nordend inspire with their elegant charm paired with historical flair. Find out everything about Frankfurt’s most popular districts, their location and prices per square metre here.

• Living in Frankfurt am Main

Sell, buy and live in Frankfurt am Main

Whether modern Nordend, up-and-coming Gallus, international Westend or the popular neighbouring town of Offenbach, with the current price trend it is worth selling your property in Frankfurt! You want to sell your apartment, your apartment building or your land in Frankfurt? Find out here what you need to bear in mind when selling your property in Frankfurt. In addition: Our free guides and tips on the topics of property valuation, off market and all prices per square metre in Frankfurt – Welcome to Frankfurt!

• Selling real estate in Frankfurt

Real estate transfer tax: buyer or seller?

The first important question for those selling for the first time: As a seller, do you have to pay land transfer tax? Good news! This tax is payable by the buyer.

Buyers pay land transfer tax, not you as the buyer.

As a rule, the real estate transfer tax ranges between 3.5 percent and 6.5 percent, depending on the federal state in which the property or plot of land is located. For quick orientation, we have summarized the real estate transfer tax rates for all 16 federal states here, with example purchase prices from 1 to 5 million euros, from Bavaria to Hamburg.

• Real estate transfer tax – table and calculation example

This tax is important for you:

Speculation tax: selling tax-free, when?

The speculation period explained more quickly:

• Owner-occupied = 3 years
• Rented = 10 years

If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. After the period has expired, the sale is tax-free. If you want to do a quick calculation, use my free speculation period calculator.

Tax calculation: Example

If you sell within the speculation period, you must – simply put – pay tax on the profits as normal, just like income from work, regardless of whether you are employed or self-employed. As a single person, this would typically mean a top tax rate of 42%.

Sale within the speculation period (< 10 years) as a private individual:

• Purchase 2024 = 2,100,000 euros
• Sale in 2033 = 4,100,000 euros
• Taxable profit = 2,000,000 euros
• At 42 % (single person) = 840,000 euros

Sale within the speculation period (< 10 years) as a company:

• Purchase 2024 = 2,100,000 euros
• Sale in 2033 = 4,100,000 euros
• Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
• At 19.1 % = 382,000 euros

Sale after the speculation period (> 10 years):

• Purchase 2024 = 2,100,000 euros
• Sale in 2034 = 4,100,000 euros
• Taxable profit = 2,000,000 euros
• Tax free

But you can’t buy 10 properties now, wait 3 years and take the profits from property appreciation, because:

3 objects rule in Berlin

There is also the 3-property rule. If you sell more than 3 properties in 5 years, it is commercial real estate trading.

When selling real estate, the “3-object rule” refers to the fact that private individuals in Germany can sell up to three properties within a five-year period tax-free. If a person sells more than three properties within this period, this is considered commercial real estate trading and is subject to income tax – even if they are not rented out but are owner-occupied.

After 10 years of holding, however, the sale is always tax-free.

Why does this rule exist?

Just like the speculation tax, the rule is intended to curb speculation on the real estate market and encourage the sale of real estate for residential purposes.

So how do the “big players” save on taxes?

Commercial property: Value added tax

When selling a commercially used property that is subject to VAT and is rented out, the seller must correct the input tax deduction. If the new owner continues to let the property, no refund of input tax will be granted.

1. Commercial properties subject to VAT require an input tax adjustment on sale
2. The continuation of the rental does not affect the input tax refund for the seller

Share deals: selling a company “instead of” real estate

One option for a tax-optimized sale is the share deal. In this case, however, the property must already have been purchased by a company (such as Immobilien GmbH) (not as an individual).

The typical sale: “asset deal”

The difference: In an asset deal in the real estate context, specific assets such as land and buildings are sold individually, whereas in a share deal the shares in the company that owns the real estate are transferred.

Simply put:

• Asset deal = property is sold
• Share deal = Immobilien GmbH is sold

A share deal means that the buyer does not acquire the property itself, but the – in this case – Immobilien GmbH. Here is a short infographic. Then back to the direct sale of a property, after which I will explain more about holding companies and taxes on the sale.

Only 1.54% tax on sale

A share deal is possible if you have the company in a holding structure. This means you only pay 1.54% tax due to the intercompany privilege(Section 8b KStG).

• Asset deal = property is sold
• Share deal = company is sold (with real estate ownership)

Let us now calculate our example again, starting with the direct sale of a property:

Sale of a property as a company (asset deal):

• Purchase 2024 = 2,100,000 euros
• Sale in 2028 = 4,100,000 euros
• Taxable profit Berlin approx. 19.1 % (trade tax 4.1 %, corporation tax 15 %) = EUR 2,000,000
• At 19.1 % = 382,000 euros

Sale of a real estate GmbH as a company (share deal):

• Purchase 2024 = 2,100,000 euros
• Sale in 2028 = 3,100,000 euros
• Taxable profit = 1,000,000 euros
• For GmbH 1.54 % = 1,540 euros

You can see how huge the difference is.

No real estate transfer tax on purchase

Let’s delve a little deeper into the subject of real estate and tax optimization!

Again, simply put:

• Sale of Immobilien GmbH below 89% = no real estate transfer tax

Why is this the case? In Germany, the sale of shares in a GmbH that owns real estate is not normally subject to real estate transfer tax as long as the shares are below a certain percentage(§ 5 GrEStG).

What is the advantage? Real estate as a capital investment must bring a profit, usually calculated by the rental yield. The land transfer tax increases the purchase price by up to 6.5%, depending on the federal state. For 1 million euros, this is a cost of 65,000 euros. This directly increases the yield by a few percent.

Taxes on gifts and inheritance

If your property is an inherited or gifted property, this also raises the question: What taxes are due? As with properties you have purchased yourself, speculation tax may also be payable on the sale of an inherited property.

However, one special feature should be noted:

Thus, the speculation period does not begin on the day the property was inherited or given away, but on the day it was purchased by the original owner.

If the property is a newly inherited rental property that was acquired more than 20 years ago, the speculation period is deemed to have expired. There is therefore no speculation tax, even if you have only recently inherited the property.

To summarize:

• Speculation tax may apply
• Only for rented or leased properties
• The speculation period begins on the day of the original acquisition

Save tax with real estate

Reading tip! Save taxes with real estate – Learn about taxing taxes! You are the greatest financial professional you can find for your individual setting (private and business). Calculating taxes yourself is the tool to minimize your own tax burden.

The aim is therefore to convert taxes into private assets

The less tax you have to pay to the tax office, the faster you can build up your private wealth. You can find out more about tax optimization in this guide.

• Save tax with real estate

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