Hotspot Research: Balearic Islands & Marbella

Temporarily living in Spain, maybe renting in the off times, here you will find the main Spanish hotspots compared. In addition, I take you to the cities and regions, on Villa Tour, with all the villa neighborhoods and districts, communities that you should consider in your purchase decision. Depending on your personal goals, you can find tranquility in the “hinterland” in all hotspots, but also the city life with proximity to the airport and numerous destinations worldwide.

Tip. After the 3 hotspots I still have practical buyer tips on purchase price, condition (especially the roofs) and location

Quick check: Which location offers which advantages?

Volcanic island Ibiza, small city Palma de Mallorca or golfer’s paradise Marbella?

• Mallorca – Big island, many small towns and a lot of tourism
• Ibiza – volcanic island, breathtaking nature, small communities
• Marbella – coastal strip for golf fans

My consultation always starts with a café

So that I can optimally support and advise buyers in your purchase situation, it is important to me to really know the places, also the people. For example, I drink 3x daily in different places Café, so you get to know people, but also the smallest micro locations.

Here in the comparison, you will find each an insight & further links:

1. Macro Perspective – Situation in Spain
2. Mesolocation of the city or “island capital”.
3. Villa district – example in the region

Villa Tour: Evaluation criteria

Under the respective regions, you will find further links to the region and the respective villa tour. By the way, the villa tours are always created parallel to real visits, like here, the Villa Tour Ibiza.

Factors that are important in my tours:

• Arrival / departure times
• Cities and Surrounding (Shopping to Doctor)
• People and spirit of the region

In the end, you decide:

Your personal wishes and goals

This brings us back to the big question: volcanic island Ibiza, small metropolis Palma de Mallorca or golfer’s paradise Marbella:

Mallorca: villa, finca, country house – all styles

Buy Villa Mallorca – Villa with pool, unique views of Palma, secluded coves or hotspots like Son Vida (suburb of Palma) and Port Andratx, in the west of the island. Mallorca is the buyer magnet in the Mediterranean when it comes to real estate. There are many hotspots, but only this island combines “the big city life” with beach, nature, sun and tranquility – in the secluded villa neighborhoods. Some have been visiting the island for 5 or 10 years and know exactly in which area of Mallorca they want to buy, others are still undecided about the right location in Mallorca.

All the main villa districts of Mallorca at a glance:

• Buy Villa Mallorca

What makes Mallorca so special for most buyers?

• Arrival / Departure: Fast flight time ~ 3h (6h round trip)
• Largest island of the Balearic Islands, much to discover
• Palma de Mallorca as a small big city
• Many other towns on the island, such as Sóller, Inca, Alcúdia, Pollença, Manacor

While the area around Marbella is manageable and Ibiza can be explored relatively quickly, it takes a while to discover all the corners in Mallorca. Of course, the number of beaches is also much more extensive. Here is a look at the climate in Mallorca:

Ø Lowest temperature / Ø Highest temperature

• Winter (January): 7 °C / 15 °C
• Summer (August): 31° / 21°

Where to buy in Mallorca? Macro location

Mallorca has many beautiful corners, but especially interesting for you will be the sections around Palma, with a focus on the southwest of the island, around Santa Ponsa and Port Andratx.

Villa in Mallorca in classic finca style.

So dreamlike are the bays in Mallorca.

Tip! Mallorca is tauch a paradise for golfers. Get to know the most beautiful golf courses in Mallorca here.

Palma de Mallorca: Small big city

The island “capital” of Mallorca is also located in the southwest of the island. Why? Here you have the most sun, in southern exposure. In the west of the island you also have the advantage of enjoying the evening sun and the sunset over the sea.

Son Vida: Palma suburb (city and luxury)

As already announced, Son Vida is the villa district of Palma de Mallorca. Son Vida is one of the best areas ever on the Balearic island. Here you will find among the highest number of villas Mallorca. The golf club is on the doorstep, as well as the old town of Palma de Mallorca and also the airport is only 20 minutes by car, across the city.

Of course, also for golf fans, one of the hotspots combined with city life / fast transfers to the airport.

Get to know the most exclusive and expensive places in Mallorca:

• Buy Villa Mallorca

Villa Tour Mallorca: The villa neighborhoods

Come with me on a virtual tour, with all the main villa neighborhoods of Mallorca:

• Buy Villa Mallorca

Ibiza: Villas in rough landscape

Villa in Ibiza – You want to buy a villa in Ibiza? Villa with pool, close to the beach and / or airport, quiet near the bay or close to the city with all shopping hotspots. Here you will get to know the right and important parts of the island. In addition, at the beginning I have a few common questions from my customers. Which location is worth buying according to my experience? Which parts of the island do I recommend to customers? So that you have a quick overview in Ibiza, divided into A, B and C location. Maybe you already know our Lukinski Real Estate Rating, in which we rate cities in Germany with over 50,000 inhabitants, in 3 categories: From good A-locations to more affordable C-locations. From Eivissa and gated community in Es Cubells, to Cala Vadella, to Sant Antoni.

Come with me on a virtual tour, with all the main villa neighborhoods of Ibiza:

• Buy Villa Ibiza

Ibiza at a glance, what makes Ibiza so special?

• Relatively fast flight time (except winter, stopover Barcelona/Madrid) ~ 4h (8h round trip)
• Volcanic, rugged landscape
• Small island community as Mallorca

Ø Lowest temperature / Ø Highest temperature

• Winter (January): 7 °C / 15 °C
• Summer (August): 30° / 21°.

Where to buy in Ibiza? Sun = south exposure

Those who have been vacationing on the island for 4, 5 years probably know exactly which region of Ibiza he or she wants to buy in. But who has seen the island only 1 or 2 times, asks himself: Are there still places I should see?

The island itself, similar to Mallorca, is most popular in the south and around the “capital” Eivissa. In the northernmost part of the island you will hardly find any villas. Here, too, the sun and its course of the day plays a major role: in the south = sun, in the north = less sun. From quiet locations in the southwest around Sant Josep, Cala Vadella and El Cubells, to villas close to the city in Sant Jesús or Roca Llisa.

Villa with view (and pool) in Ibiza.

Uniquely beautiful, the “rough” of the island of Ibiza combined with the good local life.

Eivissa: Ibiza Town, Port, Shopping

Everything in Ibiza starts from Eivissa, the “capital” with airport, city, shopping mall. Come with me on a virtual tour, with all the main villa districts of Ibiza:

• Buy Villa Ibiza

Villa neighborhood in Ibiza: Es Cubells

Perhaps the most exclusive community in Ibiza: Es Cubells. Depending on how you interpret exclusivity, you will find villas here like from Hollywood. Directly on the cliffs of the south coast and as a gated community (below the city limits of Es Cubells). Your neighborhood is peppered with famous soccer stars from Spain and Portugal.

You can hardly get villas in this area for less than 10 million euros.

Villa Tour Ibiza: The villa neighborhoods

Come with me on a virtual tour, with all the main villa neighborhoods of Ibiza:

• Buy Villa Ibiza

Marbella: “Miami of Europe” for golfers

Villa in Marbella – Especially for golf lovers Marbella is one of the hotspots in Europe. Many call Marbella the “Miami of Europe”. Pleasant to warm climate all year round and almost exclusively sun, in all seasons. Marbella is considered one of the hotspots in the Mediterranean, along with the hotspots Mallorca and Ibiza. You want to buy a villa in Marbella? I will take you to one of the most southern regions of Europe, spoiled by sun and the good life at the Mediterranean Sea.

• Buy Villa Marbella

Arrival and times:

• Slightly longer approach of ~ 5h (10h round trip).
• 45 minutes drive airport <-> Marbella

Ø Lowest temperature / Ø Highest temperature

• Winter (January): 9 °C / 16 °C
• Summer (August): 31° / 21°

This is what Marbella looks like in winter:

Marbella is a dream for golf fans. Get to know the most beautiful golf courses in Marbella here.

Monte Paraíso: The Golden Mile

Nueva Andalucía

Villa Tour Marbella: All villa neighborhoods

Come with me to one of the most southern places of Europe, the “Miami of Europe”:

• Buy villa Marbella – Tour of villa neighborhoods

Here are some more practical buyer tips:

Buying a villa in Spain: What to look for?

Then important and frequent questions from customers:

Cost: How much does a villa cost here?

Real estate investors know: Offer price is not selling price.

I like to calculate for my clients, in a first evaluation, like this: Each square meter (with beach view) costs 10,000 euros. If recently renovated or new 15,000 euros. In addition, there is “the view”. The better the view, the more exclusive, the more expensive. Depending on the size of the villa 100,000, 200,000, 500,000. As always, upwards there are no limits.

A “nice” villa in “good” location (everything is relative and depends on your individual goals and desires) with 200 m² so 2.000.000 + “View”.

Read more here:

• Buy villa Spain: What to look for?

Duties: What does a tax consultant

Before we go into the matter of tax advisors in detail here, on the special tasks, risks in the selection of tax advisors, as well as tips and the “daily” work with the tax advisor. First, a very general look at the core areas that tax firms cover. This includes accounting, financial accounting, all payroll accounting and payroll for employees, plus other tasks.

What does a tax accountant do simply explained?

7 typical tasks of tax consultants in companies:

1. Advice on tax preparation and structuring
2. Bookkeeping and financial accounting
3. Payroll accounting and payroll
4. Profit and Loss Account (EÜR)
5. Tax returns (much more on this later)
6. Audits of tax assessments
7. Representation vis-à-vis tax office and court

Compare tax accountants: The 3 biggest risks

Are you looking for a good tax consultant nearby? In fact, the choice of tax advisor has long-term effects, because the collaboration is very intense.

Intensive, regular cooperation

After you sign, you are bound to the tax office in financial and tax aspects, from levies to queries, almost every week. Likewise for the payrolls, the advance VAT returns and, of course, for questions about tax structuring. The cooperation is therefore intensive, especially with small companies, self-employed and companies in growth, where many tasks are still done by the management itself.

Accordingly, a change of tax firm is not possible overnight. Companies are very closely intertwined with their tax advisor, through regular and intensive cooperation.

Monthly cost load

Tax accountants do not work for free, accordingly, your business will incur monthly costs.

1. Management costs
2. Cost per employee
3. Additional costs for consulting, testing, etc.

So, the tax consultant costs, more about this later, consist of 3 parts. First, the monthly accounting, it is charged according to the official fee table (later under “Costs”). This means for you, the higher your turnover in the company is, the more may be charged by your tax consultant. In addition, there are costs for the payroll of your employees in the second step. Each employee is charged extra. In the third step comes all that is apart from accounting and employees: additional questions, audits, documents, even the annual financial statement, all this costs money and by time. The hourly rates of your tax advisor, but also of the employees, are also on the invoice at the end of the month.

Losing money due to insufficient advice: training and motivation

The training to become a tax consultant is done relatively quickly, a course with about 200 hours, in the full-time seminar 2 to 4 months. After that comes an exam. This means that many tax consultants learn standards, not tax design.

Many tax advisors are therefore rather tax auditors

You take over the account assignment, bill employees properly and carry out the annual financial statement correctly. The question: Is that enough? Depending on the company, goals and scaling, a tax consultant should possibly bring more.

Lack of advice involves 2 risk factors, on the one hand losses due to missed advice (tax tips, structuring options) and at the same time risks due to too much advice (cost-benefit factor). Because, as you have learned, every additional minute is billed. Suddenly the monthly costs are no longer 400 Euro, 500 Euro or 800 Euro, suddenly there are 4,200 Euro on the bill for the current month, due to the many consultations and work paths (procurement of documents by employees up to examinations and the consulting time itself).

Especially for companies at the beginning, this can be a cost trap if the tax firm is not absolutely reputable. Until owners and managers notice this mistake, as I said, we are talking about small companies, years can pass. Then the costs have already exploded.

Paying tax means losing profits

Did you know? For many companies:

Taxes are the largest cost factor in the company

Speaking of which, what is actually your biggest, monthly expense (once you’re in the 5/6 figures)? Rent? Staff? For the majority of businesses, taxes are actually the biggest cost factor, looking at business tax, capital gains tax, etc. Accordingly, the quality of the advice you get from your tax advisor makes a lot of difference.

The following calculation example is intended to show how costs add up, also through overpaid taxes and through follow-up costs, since the missing money cannot be reinvested to generate more money.

Calculation example: costs and lack of reinvestment

Already 200 euros of additional losses due to lack of advice become 2,400 euros a year. To the losses, by too much taxes, come the costs for the tax consultant (additional services for advice). Even at 1 hour per month, say at a rate of 120 euros, you are again at 1,440 euros. Monthly 320 euros that can not be reinvested, so bring further follow-up costs: You are missing money for investments at the beginning. Every euro that is missing cannot be doubled by wise investments.

Even if after 3, 4 years you realize that the work is not good, how will you check after the fact, which bill was justified, which were not? So do without it and just change the tax advisor.

Keep this in mind if you want to hire a tax professional.

Checklist of the 3 biggest risks

Summarizing 3 risks once again:

• Intensive, regular cooperation; commitment and time for change
• Amount of monthly and additional costs
• In the long term: lose money (pay too much tax, plus costs for tax advisor, lack of reinvestment) due to lack of quality/quantity advice

Remember for the future, tax planning is often in your hands!

Find a tax accountant: The 3 best tips

After the dangers of choosing a tax advisor, now straight to the tips on how to find a good tax advisor.

Advertisements in search results on Google & Co.

First of all, the most important tip: Do not click on the advertisement! You are on the Internet looking for a tax consultant in Berlin-Mitte, Cologne or Hamburg and do it like 92% of the people, you type in your request in one of the popular search engines.

The first places in search engines are always paid ads, disguised as search results. The only indication of this is the small word “Ad”, sometimes “Sponsored”. These ad spots are extremely popular! Why? Almost every click here. From my experience, go directly to page two of the search results, here you will find fewer ads for one thing and also not the companies or tax offices that spend a lot of money on marketing.

Because, who pays the money for the marketing budgets? You, the client of the tax advisor.

Ratings on online portals

Besides search engines, comparison portals, online magazines and other online sources for recommendations are also popular. Pay attention to qualitatively and quantitatively meaningful opinions. So compare the number of reviews, because only one rating is not meaningful, sometimes even bought.

• More than 5-10 reviews
• Ratings with meaningful content

Recommendations from experienced self-employed people

Should you know other entrepreneurs, trust their experience and opinions.

Importantly, these people should be entrepreneurs, not private individuals. After all, the matter, tax advisor for companies, is different than for private individuals and their wages or salaries. But also remember that the contact has been working with the tax advisor for some time, ideally the experience should be longer than three, four years. If you ask entrepreneur friends who have just started their own business and have only been with a tax firm for a few months, the experience may be too short term.

So tax advisor tips are best from contacts who have been running a successful business themselves for more than five or ten years.

These 3 little tips sound simple, but are very effective in finding a good tax accountant near you. Law firms that are reputable, don’t incur unnecessary costs (marketing) and do solid work. Let’s recap these 3 simple tips.

Checklist: Tax consultant in the vicinity, 3 tips

3 Tips from the field, find a tax advisor:

1. Do not click on the advertisement in the search results (go directly to page 2)
2. Rating on online portals (more than 5 opinions)
3. Experiences and recommendations from successful entrepreneurs

Now that you’ve learned a lot, about the risks and dangers of being tied to an accountant, as well as tips on how to find a good accountant, including online, let’s get back to the more specific tasks your accountant performs for your business.

Tasks: Tax structuring, tax returns, wages, balance sheet & co.

If you have found a good tax advisor, then from now on it is mainly about these issues:

• Advice on tax preparation and structuring
• Tax returns (monthly filings and annual evaluations)
• Wages and salaries for employees
• Annual accounts

Advice on tax preparation and structuring

If you want to run a restaurant in the future, a small business with two, three employees, then monthly financial statements, annual financial statements are the A&O for you. But if you want to grow as a company, then the tax structure, or tax avoidance is one of the most important factors in choosing the right tax advisor for your company.

Tax advisors need to know the basics, as well as new tax legislation and, above all, ways to avoid taxes.

We do not want to delve too deeply into the subject of tax avoidance at this point. After all, there are experts for that! But it is important to emphasize, as mentioned before, taxes are, for the majority of businesses, the biggest cost, every month, every year. It gets even better:

Every euro that is not spent on taxes can be reinvested by you and thus generates a further return for you.

However, in the process of growth there are also changes in the legal form of enterprises. Considering a possible sequence, this development of the company could include the following stages:

• Sole proprietorship
• Limited liability company
• Ltd
• Stock corporation (AG)
• Holding (with subsidiaries)

Thus, tax consultants also help with the change of the individual legal forms of companies. Tax structuring has so many facets, each of which takes effect individually, depending on the company and its activities. With the three practical tips (above) to find a tax consultant, you can find such tax firms in any city, even in your district.

In everyday life, however, the tasks of a tax advisor for companies do not lie in the provision of advice, but in the processing of tax matters.

Processing of tax matters

Now we come to the central core of the work of a tax advisor, simply put: accounting. The processing of tax matters is pretty much the regular standard task of any tax office. In doing so, law firms evaluate the current previous month. If all queries are clarified, the preliminary returns, the evaluations, wages and other information, following the preparation, are transmitted directly to the tax office.

So every month the tax returns come in. Depending on the company’s structure, these include the wage tax return, the capital gains tax return and, for the majority of companies, the standard advance return for turnover tax.

Then every year comes the preparation of the various tax returns, depending on the business model and construct. The typical standards of the annual financial statements include, for example, the income tax return, the corporate income tax return, as well as the business tax returns, which in turn bring you to the realization: Taxes are the biggest cost in business!

After that, the tax firm prepares the balance sheets. Balance sheets are the annual evaluations, they are not only transmitted to the tax office, but also to the Federal Gazette. Here the balance sheet of your company, insofar as you are not a sole proprietorship, GbR, or similar, is available for everyone to see.

Checklist: 6 Tasks Areas

Let’s summarize the processing of tax matters once again:

1. Payroll accounting
2. Tax returns / this includes wage tax return, capital gains tax return and advance return for turnover tax
3. Preparation of tax returns / this includes income tax returns, corporate tax returns, trade tax returns, annual VAT returns as well as inheritance tax returns and also gift tax returns for wealthy persons
4. Bookkeeping / this includes setting up the bookkeeping, creating a chart of accounts, bookkeeping itself, but also the account assignment of the documents
5. Preparation of financial statements / this includes the simple income statement, opening balance sheet, annual financial statements, interim financial statements, liquidation balance sheet and the corresponding explanatory reports
6. Applications

For the sake of completeness, tax advisors Hessen, of course, not only in the establishment of the company, but also in the liquidation, should something go wrong.

Assistance in insolvency matters

For the sake of completeness, here is a reference to the assistance in insolvency, which is also given by tax advisors. Companies fail, accordingly, it also needs people who take over the liquidation. Accordingly, the tasks of a tax advisor also include assistance in insolvency.

Read more on the topic here:

• Insolvency

Do I need to hire a tax advisor?

No, hiring a tax advisor is not mandatory, no matter what form of business you have chosen.

Cooperation with the tax consultant: Your tasks

You have now learned a lot about the tasks of a tax advisor, the various financial statements, monthly filing and annual balance sheets. But what does the cooperation with a tax advisor look like in practice?

Practical experience: For whom useful?

First of all, for whom are the following experiences useful? The following areas of collaboration apply more to sole traders, UGs (limited liability), GmbHs, under 10 employees. All businesses under 10 employees are considered small businesses. Then it starts with the SMEs (small and medium-sized enterprises), they have 10 to 250 employees. Here, of course, you are set up quite differently from a tax point of view than when you set up your business.

This area is explicitly not about tax structuring, but about daily cooperation with the law firm. From wages, their billing and calculation for health insurance, the monthly VAT advance return, business tax, as well as the annual financial statements, which will always come back to you. By the way, the annual accounts are not included in the additional costs, but are charged extra by the tax consultant, as described briefly above. But more about that in a moment.

If you own or are building a business that stays under 10, maybe 20 employees, these are the standard processes you will face when working with your tax professional. The following section should give you an overview!

Wages, registration, health insurance, etc.: Levy and appointment

The most important thing in any company is:

Good teamwork!

Only through good, i.e. motivated and trained employees, good results are guaranteed, this is true for 99% of companies. Even if the owners are “strange characters”, employees come first! Accordingly, wages, the registrations of the times with the tax advisor, as well as the calculation of the health insurance are a task, is always an interaction, from the information you give the tax advisor and what she or he makes of it.

What is your job?

You must ensure that wage data is available on time by the 15th of each month.

Not all employees in the company have a fixed number of hours. So now some may ask, how am I supposed to know exactly how many hours employee XY will work? If the hours are flexible, you will need to estimate the number of hours. In the following month, any absences will be compensated again.

Cost factor health insurance – A short excursus

But health insurance is also a big cost factor that is often overlooked by founders. Calculate with costs of 800 to 1500 euros per month per employee alone. Calculated over the year, this is a factor that is easily overlooked when extrapolating and calculating, because health insurance is not part of the salary paid, it is collected separately. 800 Euro in the month alone are a cost factor of 9,600 Euro calculated over the year. Anyone who founds a GmbH with 25,000 in start-up capital will quickly reach a critical point.

Here’s a little example:

• Salary (transfer): 1.500 €
• Health insurance: 700 €
• Settlement tax consultant: 15 €
• Total costs: 2.225 €
• Unconscious costs: + 32,6 %.

The gap between the €1,500 in thought and the €2,225 actually paid is a whopping €725, or +32.6%. So always remember that the cost of wages and salaries ultimately includes not only the actual payment to the employee, but also the health insurance and wage costs that have to be paid additionally for each individual employee.

This calculation error is multiplied with each individual employee. If, for example, you hire 5 employees through an investment or a loan, right at the start of the company, and do not take into account the costs for health insurance and payroll, you will have a monthly deficit of 3,575 euros in the calculation example. With a loan or investment of 50,000 euros, 5 employees are a huge cost. After a period of 6 months, the sudden, supposed loss (which you did not have in mind), amounts to 21,450 euros.

Finance is the number one reason businesses fail.

Therefore, it is important: you must take an interest in taxes and duties yourself.

Do not leave the work (only) to your tax advisor!

However, there are also potential savings for employees that should be communicated by the tax advisor. For example, if special services are provided for employees, such as the assumption of costs for train tickets that would otherwise be purchased by the employee himself for the way to work. Many aspects that need to be considered by a good tax office.

Important for you, is the submission of the wage data, punctually to the 15th of the current month. For employees who do not have fixed times, the expected working time must be estimated.

• Submission of wage data by the 15th of the month
• Submission of actual and estimated working times (depending on employee type)

Monthly taxes: sales tax, trade tax, etc.

Besides employee wages, however, there is a lot more for you and the tax preparer to take care of.

The regular tasks also include the monthly tax (pre-)registrations. Here, the focus is primarily on sales tax, as well as trade tax, if we are talking about regular companies such as a GmbH or an AG.

If there is one continuous factor that plays a role in your business life almost every day, it is accounting. Whether receipts from purchases, incoming invoices from suppliers, outgoing invoices for customers, all account activity is meticulously recorded, documented and archived in accounting.

Golden rule in accounting

For those who have not had any contact with the subject themselves, in quite simply explained:

Each posting a document

This is the classic golden rule in accounting. Means, every single transaction, whether with physical cash or digital transactions, must be justified by a receipt. Depending on whether it is an incoming payment, an outgoing payment, or even just a movement from account to account.

• Incoming invoices
• Outgoing invoices
• Account-to-Account
• Other such as interest

Today, much of the accounting is done through digital systems, accounting software. In the past, there were still classic folders, simply put, each month has a folder. Here the account statements are filed and behind each individual account sheet, the receipts are filed collectively. In this way, all transactions are transparently traceable, for example for one of the most important actors, the tax office. But also for yourself, a neat, orderly bookkeeping is very important, after all, you get only so key figures about your company.

Accounting in the past: folders, bank statements and invoices in chronological order.

In simply explained, that was already a lot of the bookkeeping that goes on in regular businesses.

The monthly accounts must be submitted to the tax office by the 10th of the following month at the latest.

Accordingly, you should plan your financial accounting so that they are ready directly at the turn of the month (1st, 2nd, 3rd). This way, your tax office has enough time to process them and you also have time to answer queries without time pressure.

Tip! If you are late with the accounting, communicate with the tax advisor or the tax office – communication is a very, very effective means in all tax matters.

As soon as there is sufficient turnover, trade tax also becomes an issue for you and your tax advisor. The trade tax is automatically calculated by the tax office. Small companies pay it at the end of the year, companies with the appropriate turnover and history pay monthly, so to speak in advance, so that at the end of the year there is no large tax bill for the company.

Once again summarized the most important tasks:

• Each posting a document
• Accounting almost 1 calendar month economically together
• Submission no later than the 10th of the following month (tax office)

Sales tax regulations: Domestic and foreign

Calculations at home are still easy to organize, as soon as it goes abroad, many have big question marks themselves. Honestly, from my experience, when I first faced the issue, my head exploded. All that came from the accountant was a 15 minute explanation. My simple question: when do I charge sales tax, when not?

Tip. From this question you can quickly see whether a tax advisor can explain facts easily or not. If someone starts to give you long monologues about the “EU joint business…” – do not hire him or her.

Here is the simple answer to the sales tax regulations for domestic and foreign invoices.

For transactions between companies (in Germany):

• Invoicing and invoice recipient in Germany: VAT
• If the invoice recipient is located abroad (EU Schengen area): no sales tax
• If the invoice recipient is located in a third country (outside the EU): no sales tax

There are a few special rules:

• Private customers (B2C) always pay sales tax ( value added tax for private individuals)
• Companies under the small business regulation are exempt from turnover tax

For the sake of completeness, here is a list of the European countries that currently (as of 2021/06) belong to the European Union, or more precisely the Schengen area.

• Schengen States: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.

Source: Federal Foreign Office, Article Schengen States

Annual taxes: annual accounts and example of VAT declaration

At the end of the year, depending on the legal form and company structure, financial statements are sent to the tax office. For almost all companies, this includes, for example, the sales tax return (except for small businesses that are exempt from sales tax [Ust.]). The sales tax return almost once again summarizes all tax transactions that are related to sales tax.

Tip for the monthly sales tax! Especially the sales tax is an important item that must be paid monthly, safely. With many bills there are margins, not with the tax office. Do not pay bills with it.

If the sales tax is not paid, the business account is seized. If you only have one business account at the beginning, you will quickly get into payment difficulties. Because, until the amount has not been cleared, you no longer have access to the account. Therefore, very important: the monthly accounting and the annual closing of the sales tax.

The VAT return is prepared by the tax office. In addition, the annual financial statement is obligatory for all companies.

The annual financial statement is also important. It summarizes everything once again, clearly. While you and your employees still have many tasks of your own in accounting, the annual financial statement is almost completely prepared by the tax advisor. You may only have to answer a few questions about individual transactions in advance. When the annual financial statement has been prepared by the tax consultant, you receive an evaluation and still have to sign it. The submission usually does not happen at the turn of the year, but is tax-efficient, on time, at the latest before the submission deadline.

For completeness: Small businesses and freelancers usually prepare a short EÜR (income surplus account).

Annual accounts: Content

You will then find the following information in the annual financial statements:

• Balance
• Profit and loss account
• Appendix
• Management Report
• Statement of changes in equity; segment reporting (only in connection with consolidated financial statements)

Deadline: Own production / tax consultant

When must the annual financial statements be submitted? The deadline for submitting the annual financial statements to the tax office is currently 31 July. If you are assisted by a tax advisor, the deadline is significantly longer, extended to 28 or 29 February of the following year.

• Own production: 31.07.
• Preparation by tax consultant: 28. or 29.02. (following year)

Costs: How much does a tax consultant cost?

How much does a tax consultant cost? This question can only be answered in part. Tax consultants charge according to the fee table, but they also have room for manoeuvre here. The fee table only covers standard services, i.e. monthly bookkeeping. Even the annual accounts cost extra. Every minute of consultation costs extra. Every time you get documents, records or figures, it costs extra.

For a first, rough overview, this simplified fee table will help you. It should make clear to you that tax advisors charge according to the turnover of the company. Of course, you also have a certain margin on this fee regulation, but the fee table is good for orientation.

Fee table

This is how much a tax consultant costs, with a turnover of 100,000 euros, for balance sheets, EÜR, income tax returns & Co.

Source: fivmagazine.de, tax consultant costs

Last but not least, we have a few typical questions and answers founders have if you haven’t had any experience with tax advisors.

Questions and answers: Tax consultant

Every year tens of thousands of businesses start. Restaurant, fashion boutique, media agency to app or online platform. They all have questions, even founders in real estate. Starting from: “Where do I find a good tax advisor?” to.

Where can I find a good tax advisor? Lists

As described above, there are mainly 3 tips that help to find a good and reputable tax advisor. You will usually get the very best recommendations from well-known business owners who have been in business for years themselves and have a good, commercial understanding. If they are happy with a tax accountant over a long period of time, then they are likely to be a recommendation for your business.

If you don’t have any direct contacts with contractors then you should start your search on the internet, again there are two good tips. One, don’t click on ads in the search results and two, read through reviews and make sure the company has not just 1, 2 or 3 reviews but ideally 10, 20 or even 30 depending on the size of the city.

Find a tax advisor! 3 tips summarized:

• Do not click on the advertisement in the search results (go directly to page 2)
• Rating on online portals (more than 5 opinions)
• Experiences and recommendations from successful entrepreneurs

Should you want direct recommendations now, read more here! Good tax advisor recommendations from Bavaria, over North Rhine-Westphalia to Berlin and Hamburg. With over 30 cities and all free of charge:

• Tax consultants in the vic inity (fivmagazine.de)

How much should a tax consultant cost? Comparison offers

We have already explained the most important aspects of tax advisor costs above.

If you do not yet have a tax advisor and are currently searching, you should proceed as with other service providers, get comparison quotes. This way you can estimate the costs and compare them with other tax consultants. For example, if you have found a few good adresses in their city through the 3 tips to find a tax advisor, get a quote from each of them. This will help you find the best consultant.

What does tax consultant mean in English?

In English, a tax consultant is referred to as a “tax consultant”.

What does it cost to file an income tax return with a tax advisor?

If you earn money, you have to pay income tax (minus the exemption amount). One of the first questions asked by founders: What does an income tax return cost with a tax advisor? As seen above in the table of fees, the tax return costs between 142 and 853 euros.

When is a tax consultant worthwhile?

This in turn leads us to the question: can I do my tax return myself? As learned above, hiring a tax advisor is not mandatory. Therefore, the question of when it is worth hiring a tax advisor cannot be answered in a general way. Simply put, if you have commercial knowledge and interest, you can do your tax return yourself. However, you run the risk of not taking advantage of tax benefits, for example in the case of tax allowances. It is therefore recommended at most for small businesses and sole proprietorships. For any business forms apart, whether GbR, UG, GmbH, you should work with a tax advisor. Finally, it also goes well verification of the data to the tax office.

Setting up a company, legal forms and taxes

Learn even more about taxes, legal forms and the first years of setting up a company here.

Form a company

Founding a company – You want to found your first company? Requirements for you as a founder, share capital, shareholder agreements, costs for the foundation, legal forms and checklists. This sounds complicated for beginners, but it is actually quite simple. The process of founding a company is usually relatively the same. I have summarized the foundation here once in simple steps, for you. Learn how to start your own business. After the great guide to all legal forms or types of companies, today a detailed look at the establishment of a (real estate) company for beginners.

• Form a company

Legal forms in Germany

Legal forms in Germany – What types of company are there? If you want to start your first company, then choosing the legal form is one of the first steps in the process of setting up a company. Whether it is a special real estate company or founding a startup, here I have summarized all types of companies in Germany for you. In this list of companies you will find explanations, advantages, disadvantages, costs, the process with checklists and requirements, for each type of company. In addition, especially for real estate owners, as an extra: real estate GmbH (asset managing GmbH) and family foundation with tax advantages. All legal forms in one list!

• Legal forms in Germany

Taxes in Germany

Taxes in Germany – Corporation Tax (KSt), Income Tax (ESt), Capital Gains Tax (KapESt), Value Added Tax (USt), Trade Tax (GewSt) – who pays what? In this overview of the different types of taxes / tax forms in Germany, you will find relevant taxes for you as an individual and for your company, depending on which legal form you have chosen. In addition, after the tax list: How does the tax cycle work around monthly financial statements, annual financial statements and balance sheets? A little insight for those who are starting their first company and are looking for a good nor a good tax advisor. What taxes are there? Simple explanations, definitions, an insight into taxes.

• Taxes in Germany

US taxes

USA – What taxes do you have to pay when you buy a house in USA? Below you will find a list of all the types of taxes you have to pay, how much they are, where you can read more about them and what they are used for. Everything you need to know about taxes related to buying a property, be it your home or a vacation home. We answer the questions, what are “transfer taxes”? How much is property tax when you buy a property? Here are the answers.

• US taxes

Selling your first property: Hotel sale

You have never had anything to do with the sale of a property? Then I want to give you a few general tips on the process of selling real estate.

On many Internet sites and in online portals, you are mainly pointed to the typical procedures, such as the question, sell with or without a broker? Hotel owners should not ask this question at all, after all, it is about more than “just” a condominium.

Operators of hotels have a special property, with special dedication, many are already a custom-made, with a view to cutting (and dedication). Accordingly, for this type of property you need special buyers.

So selling a hotel is not just about having the right documents and paperwork, it’s also about having the right, ideally exclusive, marketing strategy.

As you can read in the article Selling Property, selling property is about 3 phases. First comes 1) the preparation, then 2) the marketing and 3) the selling process.

Preparation at a glance

The first step is always about the right strategy. The first step determines the entire sales process. Within the strategy, you determine the timing of the sale, you collect the necessary documents for the evaluation of the property and the economic forecast for the future of your hotel. From this, the offer price is then determined.

For the increase in value of the property, it is also worth thinking about beauty corrections and renovations. These are the first, important steps in the preparation.

More on that later.

Sales phase: Discreet or on portals

After that, it goes into the sales phase. In the sales phase, individual contacts are approached in a targeted manner. At least for exclusive sales in the off market area. The wealthier the parties involved, the more valuable time is. Time is the one commodity you can’t produce. Money is not an issue for these types of buyers. Proof of financing, non-disclosure agreements, everything is immediately available.

Accordingly, these investors only want to be presented with offers that no one else has access to. If you waste a month as an investor with a volume of over ten million euros, you will be extremely frustrated.

Just the reputation plays a big role in this circles. From therefore also our recommendation, if you are already at this point in the article:

Don’t burn your property on online portals. You may get hundreds of inquiries here, but who really has the credit rating? Who should write to all of them, check credit ratings, talk, meet them, negotiate? Rather off market, targeted to 1, 2 investors.

Finally, it continues now with the entire, first communication. Sifting through enquiries, checking the creditworthiness of interested parties, further information, telephone calls, right up to the viewing appointment and, of course, the negotiations.

How many stakeholders do you want to go through this process with?

Time is money.

Sales transaction: purchase contract, notary and taxes

The last step is then the sales process. Here it is mainly about the purchase contract, the notary appointment and the handover of the hotel.

That’s roughly it, the entire process in selling a hotel. If you want even more information about selling your first property, read more here:

• Sell property

You can find everything on the subject of taxes here:

• Selling real estate: taxes

Here we have summarized the process, in its three phases, once again for you:

• Preparation: Prepare hotel and sale
1. Timing
2. Broker appointment
3. Documents
4. Prepare hotel
5. Offer price
6. Exposé
• Sales phase: marketing the hotel and finding buyers
1. Marketing strategy
2. Take inquiries
3. Contact with interested parties
4. Credit check
5. Viewing dates
6. Sales pitch
• Sales transaction: Purchase contract until handover
1. Contract of sale
2. Notary appointment
3. Land register entry and purchase price
4. Handover
5. Invoices for notary and broker
6. Pay tax

Work both real estate sales with professionals, then you don’t need to watch out for real estate sales mistakes.

Always a good place, hotels in Berlin.

Timing and time pressure in sales

Too much stress, the high age, or even the lack of succession. Various factors sometimes influence the time in which the hotel is to be sold / must be sold! So do not wait too long if you can estimate certain factors (pressure through finances, pressure through age or desire from the end of the business).

The reasons for the sale can be different:

• Too much stress at work
• High age
• Lack of succession
• Credit Print

Before your planned hotel sale becomes a distress sale, you should think about the optimal time in good time. The ideal case is: You have no time pressure. If you do, you need to prepare yourself all the better for the sale.

Do not sell “too late” when the sale is foreseeable, otherwise there will be time pressure

However, due to countercyclical effects, you can also slip into a phase in which the demand for hotels, from the investor side, is lower.

Sources of error: Selling without experience

Poor or insufficient preparation can lead to legal errors, but also to tax errors. So do not wait for years and postpone the sale, if certain factors can be estimated.

However, mistakes can be made not only in the preparation phase, but also in the later sales phase when it comes to marketing the property.

Even inexperienced real estate agents go the wrong way and “burn” the property, e.g. by listing the hotel on all real estate portals. Especially large investors quickly ask themselves the question:

What’s the catch if the property is on all real estate portals? A further check does not take place at all.

The tip here: Off market sale, directly to operators, investors, foreign investors and funds. Especially in the area of hotel real estate, discretion and anonymity for the seller side is often a very important issue in the process.

Anonymous and discreet: Direct to investors

We always pay attention to the highest discretion and anonymity in the sale of our customers. Hotels that fit our purchase profile are only communicated internally to known buyers. Even this communication takes place in several steps.

Investors are informed in a targeted, discreet manner

In the ideal case one creates with it already a 1:1 match. That means one seller, one buyer and no information about the sale and the object comes to the outside. Especially for families, in which it is also about the topic of real estate inheritance, just as important as for entrepreneurs who do not want others to know about the upcoming sale.

How much is my hotel worth?

When selling real estate, people usually assume that it’s all about the construction and the substance.

For investors and capital investors, however, it is always about the return = profits of the future.

The decisive factor in valuation, for hotel properties as well as for companies, is future income, i.e. revenues to be generated by cash flow.

Buying rental property is no different.

And again, as in general real estate sales:

Location, location, location!

The tried and tested comparative value method helps with the valuation. Simply explained: Are there any hotel or restaurant businesses in the vicinity that have been sold recently? If so, this information can be used to determine offer prices for your hotel and forecast sales prices.

It always gets expensive, for example, when it comes to Kitzbühel.

Source of error: Valuation from broker is too high

The later offer price of the hotel is important, because here it is decided whether interested parties bite or not – simply said. Price too high, area too small, no interest. There are 2 sources of error here:

1. Wrong asking price of the owners
2. Too high a valuation of the real estate agents

First to the wrong, too high asking price of owners, before the first broker appointment.

For a first, rough evaluation, many take a look at online real estate portals. There, however, you will find offer prices (!), not the final sales prices. Just because a hotel property is offered for 20 million, does not mean that the hotel will sell for 20 million. Keep this in mind when you check prices on online portals yourself in advance.

Another source of error lies in the selection of offers by the estate agents. More specifically, in rating the real estate agents too highly. They will say, “great, a great rating”. But again the reference to the customer:

Price too high, area too small, no interest.

If the valuation of the hotel is too high, no interested party will be found and this brings us back to the beginning, the pressure to sell! So if you ask for offers from several agents, do not automatically take the real estate agent with the highest rating. Make sure that critical aspects are also included in the evaluation. This will increase the success and speed of the sale!

Choose brokers who also take critical aspects into account instead of looking for the highest rating

Buyers will be just as critical and, in case of doubt, will bail out, possibly already at the first contact.

Time and offer price determine success

Selling a commercial property, however, also means addressing a special, relatively small group of buyers. The hotel requires investments for cosmetic corrections, small and large renovations, loans must be serviced, if the time of sale is not cleverly chosen, the offer price too high, the hotel will not be sold. This brings us back to the distress sale.

Advantages Off Market: Direct investors, discreet hotel sales

Therefore, our recommendation is, trade your hotel exclusively. This means one partner, no real estate portals, but real estate investors, capital investors, direct contacts from a network. The technical term for this type of real estate sale is, as previously learned, off market.

The advantage, through the exclusive sale, solid investors can be adressed. The sales process is much faster, sometimes it takes only weeks instead of years.

With the right partner at your side you will not only reach the regional market of investors, not only the national market, have you ever thought about the international investor market?

Many investors from abroad are very interested in real estate in this country. Everything on a grand scale, for real estate funds, families but also large hotel chains that want to gain a foothold in this country. That’s why we don’t just talk to investors from our own country, if the return is right, the property information discreetly reaches investors from all over the world. A big advantage for you as a seller, here the money sits a little looser than with domestic, checking and researching the investors if a goal is to be met.

Documents and records

When selling a hotel, far more documents and figures are necessary than when selling private real estate. The new owner needs business figures, facts about the lease agreement and the operation of the hotel.

All information on rooms, occupancy levels, seating and capacities are included in the decision and show the prospective customer whether your hotel is suitable for his intended use.

In order to convince an experienced hotelier or a prospective hotel operator, the documents must be complete and all figures must be verifiable.

Without a savvy realtor, selling a hotel becomes difficult and comes with some pitfalls that should not be underestimated.

Alternatively to the sale you can choose a lease. Which variant is the best solution for you as the owner, you can find out in a comparison of the two options and in a competence consultation from the real estate agent. Basic information in both cases includes informing you whether the hotel is currently vacant or whether you are seeking a change of ownership in the course of operations.

Sell hotel – Conclusion

If you want to buy a hotel, you need a strong partner, because the best properties already go away in advance. Through local acquaintances and networks, the most lucrative properties are usually bought before they even appear on the market and on real estate portals. As a rule, you will not find the absolute premium objects on a real estate exchange.

As a seller, you also benefit from these more exclusive deals. Because of course, a higher sales price can be achieved as long as the objects are still traded exclusively. Here, the one or other buyer with the purchase price for the hotel still goes up a little, so that the offer does not go further. From country hotels to boutique hotels, there are excellent conditions for hotel sales with brokers in the current development of domestic tourism.

If you want to sell a hotel, the professional approach from the beginning is of immense importance. Unlike with privately used properties, the comprehensive valuation and marketing strategy play a concise role. Which group of buyers should be adressed by your offer? Which conditions are relevant in the current lease and which reputation does the hotel have? All these aspects have an effect on the offer price and decide how great the interest of experienced hoteliers is in your property.

Statistics: Tourism boom

As already mentioned at the beginning of the guide, domestic tourism is booming and has been shining for over 10 years with ever new record figures. Accordingly, the number of overnight guests and the demand for hotels in the real estate market is increasing. From the chic, luxurious boutique hotel in the city centre to the hotel with connected gastronomy and event areas. In Germany, people are not only taking more holidays, they are also spending more on them. Thus, prices for overnight stays are rising and the hotel industry is becoming a lucrative business for more and more companies and entrepreneurs.

Ergo: The real estate market and tourism market are both on the upswing right now. If you sell now, you’ll get a good sale price – why wait for the next real estate bubble? We show you how to take the current profits. Trade your hotel property anti-cyclically.

You want more interesting facts and figures from all over Germany for real estate owners? Read more about real estate statistics here.

Here is the proof – tourism in Germany has been booming for years! With a new concept, old hotels can quickly appear in new splendour. You can find more interesting statistics on domestic tourism and the effects on the hotel industry under the diagram and the “Procedure hotel sale”.

Overnight stays by guests in Germany

Guest nights in German accommodation establishments from 1992 to 2018 (in millions).

Tourism Contribution to gross domestic product

Development of the direct and total contribution of the German tourism industry to the gross domestic product in the years from 2012 to 2028 (in billions of euros).

You can find more statistics at Statista

Tourism workers

Development of the direct and total contribution of the German tourism industry to employment in the years from 2012 to 2028 (in 1,000).

Number of hotels by hotel stars

Number of classified hotels in Germany by hotel stars (as of January 2019).

You can find more statistics at Statista

What is important when offering a commercial property

Good real estate agents not only find a solvent buyer promptly, but also support you in selling the property for business according to its circumstances and possibilities. Viewing appointments are arranged, coordinated and carried out professionally.

To expedite the sale and give you confidence in selecting a contractor and new owner, we check the creditworthiness of prospective buyers and obtain a concept for financing. Before an experienced commercial real estate broker makes a recommendation and suggests a buyer to you, he has obtained all the necessary checks on solvency, secure financing and customer-specific facts.

You are relieved of the entire preparation and sales phase, so that you can take care of your core business and safely outsource the brokerage.

Broker tasks in commercial real estate sales

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised with the comprehensive services of a real estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

Here you can find more information about the:

• Tasks of a broker

Commission for the broker: The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due.

Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

Here you can find more information about the:

• Broker commission

Selling commercial property? Procedure, taxes & Co.

Selling commercial real estate is a complex, time-consuming task that requires expertise. Without the necessary know-how and experience in commercial property sales, mistakes are bound to happen. If the asking price is disproportionately high, you will receive few enquiries and have to be prepared for a lengthy sales process. If the price is too low, you will lose money and be dissatisfied with the sale.

Sell privately?! Avoid mistakes

Rely on experts who are experienced in the sale of commercial properties and who know what is important in the preparation of an offer, in the determination of the price and in the conversation with interested parties. Dedicate yourself to your daily tasks and choose to have your property for commercial sold professionally. Avoid making mistakes when selling real estate.

Valuation and offer price

You want to sell your property? For the successful and profitable sale of a property, a well-founded and realistic valuation is always the first step. This ultimately determines the sales price to be set. In the next step, real estate agents bring your property to solvent interested parties, here it is not only about real estate portals and marketing, also the property valuation(house valuation / apartment valuation), credit check of potential buyers, viewing appointments and negotiations are the task of the broker, up to the purchase contract, the notary appointment and tax issues. Get to know the matter of selling real estate here in the guide. Simply explained, step by step!

• Sell property

Commercial property: special case

Selling commercial property is always a special case, compared to the typical apartment or single-family home. For example, the sale of hotels and entire shopping centers, with underground parking as an extra.

Sell hotel property

Many questions also reach us specifically on the topic of selling hotels. Therefore, we have summarized the topic here once again in more detail for our readers. Especially for those who are selling a hotel for the first time, or the very first property.

Hotels have a few special parameters, for example in the valuation. Just as with commercial real estate in general, it is not only about the substance but also about the potential of the property, from the state of renovation to the location of the hotel. In very simple terms, how much will the commercial property, or in this special case the hotel, generate in the next five years? Very simply put. The valuation of the hotel is therefore much more complex.

Read more here in the small guide on the subject:

• Sell hotel

Sell mall

Shopping mall selling – Shopping behavior is changing. More and more people order items, no matter if clothes, accessories, furniture or even other knick-knacks on the internet, on online shops. Inner cities, the most expensive shopping streets, but also life in small towns is changing. Accordingly, the fluctuation in shopping centers is just as, smaller and smaller. If you are in the unfavourable situation of thinking about selling your property or shopping centre, you can find the first information here.

• Sell mall

Notary: purchase contract, ownership and tax law

The notary must certify the sale of any property. He acts as an independent legal authority and is supposed to protect both buyer and seller. After the preliminary contract has been drawn up, he holds a meeting with both parties and consequently draws up the main contract. He does not represent one of the two sides, but both. This reduces the legal risk for both parties. Not only does he have to notarize the purchase agreement, but he also has to explain all the legal issues. In addition, he is the one who arranges for the transfer in the land register. This only takes place when the buyer has also paid the purchase price. Furthermore, the claims formulated in the contract are immediately enforceable. The seller does not have to sue in case of non-payment. Instead, the notary can immediately instruct the bailiff.

Before the notary appointment: organisational matters, documents

But before it even comes to the notary appointment, many other legal issues must be clarified. For example, the ownership structure must be clarified and proven. Check whether you are really the sole owner or whether other people may also have a claim to the property. For example, if the property is jointly owned by two people, there will be a purchase price distribution after the sale that corresponds to the ownership shares.

Last but not least, tax regulations must also be taken into account. If you sell a property that you have used yourself, no tax is due. If the property is rented out or used commercially, it must have been in your possession for at least 10 years. Otherwise, the so-called speculation tax must be paid. Here, the legislator is guided by the date of the notarization of the purchase contracts. The land transfer tax must always be paid. However, this is usually borne by the buyer. The amount of the real estate transfer tax is a matter for the federal states and is set by the respective federal states themselves.

Legal support from an experienced broker

The sale of real estate in Germany is legally regulated by the notary. He clarifies all legal questions concerning the purchase contract. However, a great deal of research and work is necessary in advance in order to meet all legal requirements and avoid pitfalls. It is therefore advisable to contact an experienced real estate agent who knows the legal regulations. This will save you a lot of tedious research as well as a lot of stress and frustration.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.