Sell apartment against annuity

Many seniors face a financial dilemma. In some cases, neither savings nor pensions are sufficient to cover ongoing living expenses. In other cases, health problems can cause care costs to rise. The only way out: selling their own home.

But for many older people, their home is more than just a roof over their heads. It is their home, where they have lived for decades and which is familiar to them. Selling their apartment can mean being torn from their familiar surroundings and having to move into an unfamiliar environment.

In such cases, selling for an annuity can be an attractive option. By selling your home for an annuity, you can continue to live in your home and supplement your monthly pension payments.

How the real estate pension works

The life annuity is an agreement between the seller and the buyer in which the seller transfers ownership of his property to the buyer in return for a lifelong annuity. The amount of the annuity is determined when the contract is signed and depends on various factors, such as the value of the property, the age and life expectancy of the seller, and current interest rates.

In return for the annuity, the seller retains the right to live in the property for life. This means that he can continue to live in and use the property. This allows you to continue to stay in your familiar surroundings and still provide yourself with financial security.

The life annuity in summary:

• Apartment is sold to annuity provider
• Monthly annuity payment instead of purchase price payment
• Registration of a lifelong right of residence

Requirements: Age & property value

In order to receive an annuity, certain requirements must be met. To ensure a calculable financial risk for providers, many set a minimum age for sellers. This is usually between 60 and 65 years. In addition, unencumbered real estate is usually preferred and the minimum value of the property is also usually fixed, as it guarantees a minimum real estate annuity. Here, one can be guided by the individually set value of the provider. As a rule, providers demand a minimum pension of 150 to 250 euros per month.

The requirements at a glance:

• Minimum age of the seller: 60 years and over
• Minimum payout: from 150 euros per month
• Property free from encumbrances

Taxes: Income tax on income share

In the case of the real estate life annuity, only the income share is taxed, as annuity payments are classified as “other income” under the Income Tax Act. The share of income is influenced by various factors, in particular by age at the time the contract is concluded, and can be deducted from tax as a special expense. The taxation share decreases continuously with increasing age at the time the contract is concluded. This means that older persons generally have to pay less tax than younger persons.

Life annuity or traditional apartment sale?

In addition to the annuity, you can also opt for a traditional sale of your home. The advantages of a complete sale: You receive the agreed purchase price paid out in one go. The sale price is usually higher than with a life annuity, but you lose all ownership rights to your home.

As mentioned above, the life annuity allows you to continue living at home while freeing up your real estate assets. In addition, you save the cost of moving and do not have to buy a new apartment or pay rent.

Here are the advantages at a glance:

• Life annuity: no need to move out & release of real estate capital.
• Traditional sale: payment of the full purchase price

Conclusion: Secured into old age

Overall, the sale of an apartment for a life annuity offers older people an attractive alternative to the traditional sale of an apartment. The life annuity makes it possible to convert the sale proceeds into a monthly pension that is paid out until the end of one’s life, thus guaranteeing a regular income in old age. At the same time, one must be aware that by selling the property, all ownership rights are transferred to the buyer. For this reason, it is important to take enough time in advance to weigh up the respective advantages and disadvantages and to make the best decision for yourself.

The Right of Residence Explained

When it comes to Real Estate as a Retirement Provision, the term right of residence quickly comes up. The right of residence under § 1093 BGB entitles a favored person to live in a property or part of it themselves — even if the property belongs to someone else. It is a real right, meaning it is inseparably linked to the plot of land and survives any change in ownership.

Limited, lifelong, paid, unpaid

Right of residence can be flexibly structured. In practice, four variants dominate:

• Lifelong & unpaid — the classic option for transfers within the family
• Lifelong & paid — the entitled person pays a reduced rent, often when selling to an investor
• Limited & unpaid — e.g. five years until the planned move to a nursing home
• Deferred condition — Right of residence begins only upon the death of the spouse or at a specific date

Right of residence vs. Right of use — the decisive difference

Whoever plans to sell with long-term housing security must clearly distinguish between these two instruments. They are often confused — but the economic consequences are significantly different.

Rule of thumb: Whoever just wants to continue living there chooses the right of residence. Whoever wants to remain flexible and possibly rent out or move, without losing the right, chooses the usufruct.

For whom is the right of residence worthwhile?

The typical scenarios

A lifelong right of residence is mainly agreed upon in four scenarios in practice:

• Parents to children — anticipated inheritance, use of gift tax allowances every ten years
• Spouses to each other — security for the longer-living partner in separate property arrangements
• Sale to investors — so-called “sale on a pension basis” or “real estate life annuity”
• Sibling inheritance — one heir takes over the property, the other receives the right of residence

The right of residence is ideal for close relatives, spouses, parents & grandparents.

When it is not worthwhile

Little sense makes a right of residence if the entitled person intends to move anyway in the foreseeable future, if the property would have to be sold below market value because the market is weak, or if the owner needs external financing — banks assess properties burdened by a right of residence significantly more conservatively and often require a priority entry in the land register.

Value Calculation: What is the value of the right of residence?

The central question in every negotiation. The capital value of the right of residence is determined according to § 14 of the Real Estate Transfer Tax Act and reduces the purchase price or the assessment base for gift tax.

The Formula

Annual value (local cold rent × 12) × life annuity factor = capital value of the right of residence

The life annuity factor is derived from the statistical life expectancy of the entitled person and is updated annually by the Federal Ministry of Finance. Simplified: The younger the entitled person, the higher the factor — and the greater the value reduction.

Calculation example — condominium in Munich

• Market value of the apartment: 850,000 €
• Local cold rent: 1,800 €/month = 21,600 €/year
• Beneficiaries: 72-year-old woman, life annuity factor approx. 9.8
• Capital value of right of residence: 21,600 € × 9.8 = 211,680 €
• Reduced selling price (to daughter): 850,000 € − 211,680 € = 638,320 €

As the daughter has a gift tax exemption of 400,000 €, a significantly lower tax applies to the difference between the reduced value and the exemption than without the right of residence. With a strategic division over ten years, the tax burden can often be reduced to zero.

Rule of thumb for quick calculation

Advantages for the entire family

Properties with registered right of residence are only sold on the open market at a significant discount, because they are unattractive to external buyers. For this reason, they are usually passed on within the family — and there, they fully realize their tax and emotional impact.

Advantages at a glance — Who benefits how?

What is additionally tax relevant and affects the future owner: AfA Real Estate.

What needs to be considered

Decide to sell your apartment with a registered right of residence, several aspects must be clearly regulated. Whoever is careless here creates potential for disputes for decades.

Duration and Expiry of the Right of Residence

A right of residence can be time-limited or lifelong — it expires either at the end of the agreed period or with the death of the entitled person. The owner can only unilaterally revoke it in exceptional cases (such as gross misconduct). The entitled person can voluntarily renounce their right of residence at any time — for example, when moving into a nursing home. Merely not using it does not automatically lead to its expiry: After 30 years of non-use, the right of residence can be removed from the land register without the consent of the entitled person.

• Duration is notarially determined in advance
• Revocation only in exceptional cases
• Renunciation by the entitled person is always possible
• Expiry automatically upon death of the entitled person
• Cancellation after 30 years of non-use

Costs and Burdens — who pays what?

The most common point of contention after a change of ownership. Without a clear regulation in the notarial contract, the statutory distribution applies — and this is often unsuitable. Standard practice:

Recommendation: List this division point by point in the contract — general formulations such as “Holder bears the ongoing costs” regularly lead to conflicts.

Inheritance by third parties not possible

The right of residence is personal and not inheritable. It ends with the death of the person entitled to it — heirs or successors cannot continue it, unless this is explicitly stipulated differently in the original agreement (which is the exception). After death, the owner regains full control and can sell, rent out, or use the property themselves.

Move-in to a nursing home — what happens then?

An often underestimated practical case. If the entitled person moves permanently into a nursing home, the right of residence remains in place initially — the apartment, however, remains empty. Three options:

• Renunciation by the entitled person — clean, but final
• Agreement on renting out — rental income often covers nursing home costs
• Social services reimbursement — if the person is in need of care and receiving social assistance, the social services office may take the right of residence into account as an asset or demand its capitalization

Tip: Include a so-called “tenant compensation clause” in the contract — it regulates that the owner must make a reduced monthly payment to the entitled party as long as the right of residence remains formally in place upon moving out.

Notarial Certification and Registration in the Land Registry

The right of residence must be notarially certified and registered in the land registry (Section II) in order to be legally effective as a real right against any future owner. During the notary appointment, the notary ensures that all formalities are followed. Registration in the land registry makes the right of residence publicly visible and protects the entitled party against any future buyer.

Necessary for security:

• Notarial certification of the contract
• Registration in Section II of the land registry
• Clear description of spaces, rights of joint use, cost distribution
• Provision for the case of moving out/entering a care home

Checklist: Clarify before the notary appointment

• Will a right of residence or a usufruct be more suitable?
• Which rooms are included in the right of residence (entire apartment or only parts)?
• Co-use rights for garden, basement, garage, attic regulated?
• Current local cold rent determined as a basis for evaluation (rent index/expert opinion)?
• Life annuity factor calculated based on age?
• Detailed cost allocation (consumption, maintenance, land tax, insurance)?
• Nursing home clause and tenant compensation regulation included?
• Gift tax exemptions optimized with a tax advisor (10-year rule)?
• Priority in the land register established (before or after bank mortgages)?
• Renovation obligations and cosmetic repairs defined?
• Right of first refusal for the family considered?
• Agreement on the possibility of mutual termination against compensation?

Apartment with existing right of residence

]]> https://lukinski.com/selling-apartment-with-tenant-rights-duties-special-features/ Wed, 08 Mar 2023 05:04:50 +0000 https://lukinski.de/selling-apartment-with-tenant-rights-duties-special-features/ Selling an apartment with a tenant – selling a rented condominium can be a profitable way to free up capital, reinvest tied equity, or strategically restructure a portfolio. However, the process comes with significant peculiarities: tenant rights, notice period restrictions, right of first refusal, and a significantly smaller pool of potential buyers lead in practice to price reductions of 20 to 35 percent compared to selling an empty property. Find all the details about the entire process in our Real Estate Sales Guide. In this article, you will learn what rights tenants have, how to find the right buyer, what tax pitfalls to watch out for, and how to achieve a market-appropriate price despite the rental agreement.

Selling an apartment with a tenant: What you need to know

The sale of a rented apartment is significantly more complex than the sale of an empty property. From the protection against termination under § 566 BGB to the tenant’s right of first refusal (§ 577 BGB) and up to the waiting periods for termination due to personal need (§ 577a BGB), there are numerous legal hurdles. Moreover: The buyer pool shrinks – end-users are out, investors become the main target group. Let’s take a closer look at the most important points.

Protection against termination: Sale does not end the lease (§ 566 BGB)

Selling the apartment does not terminate the rental agreement. The central principle “sale does not end the lease” is enshrined in § 566 BGB: The new owner assumes all rights and obligations of the existing lease agreement. Rent price, notice periods, clauses regarding cosmetic repairs, modernization agreements – everything remains unchanged. The tenant still has a right to undisturbed possession of the apartment as long as they fulfill their contractual obligations.

Practically speaking: Even though the rent has been below market level for years, the new owner cannot simply adjust the contract. Rent increases are only possible within the capping limit (15–20 percent over three years) and the local comparative rent. Exactly this point leads to significant price discounts for properties that are heavily under-let.

The most important facts at a glance:

• § 566 BGB: Purchase does not terminate the lease
• Buyer takes over the lease agreement including all clauses
• Security deposit also transfers to the buyer (§ 566a BGB)
• Rent increases are only possible within the legal framework
• Seller remains responsible for outstanding rent up to the handover

Rentaler’s right of first refusal (§ 577 BGB)

When an apartment building is first divided into individual condominiums and sold to third parties, the tenant is entitled to a statutory right of first refusal. This protective mechanism is intended to prevent tenants from being evicted from their apartments through conversion and sale. Important: The right of first refusal applies only to the first sale after division – not to every subsequent resale.

This is how the right of first refusal works in practice:

• Seller must inform the tenant in writing about the content of the purchase agreement
• Tenant has two months to exercise the right of first refusal
• Exercise of the right must be done in notarial form
• Tenant enters into the same conditions as the third-party buyer
• Exception: Sale to family members or household members – no right of first refusal applies here

What other special considerations should be taken into account when dividing a multi-family house, you can find out here: Selling apartments individually.

Notice protection period after conversion (§ 577a BGB)

An often underestimated point: If a rental apartment is converted into a condominium and sold, the new owner is subject to a notice protection period for personal use and value-based termination. During this period, the buyer may not terminate the lease for personal use.

Overview of the protection periods:

• Federal minimum protection: 3 years from the transfer of ownership
• In tight housing markets (by state regulation): up to 10 years
• Applies to major cities such as Munich, Berlin, Hamburg, Cologne, Frankfurt
• The period begins with the registration of the new owner in the land register

For investors, this is neutral to positive – they want to keep the property rented out anyway. For self-occupying buyers, this lockout period can be a deal-breaker and effectively excludes this buyer group.

Lease termination agreement: The expensive, but clean solution

If you want to sell the apartment empty in order to achieve the higher self-occupying price, the lease termination agreement is often the only legally secure way. The tenant voluntarily waives his tenancy rights in exchange for a lump sum and moves out at an agreed time.

Market-standard compensation amounts:

• Standard: 6 to 12 net cold rents
• In tight markets: 12 to 24 net cold rents
• Approximate range: 10,000 € to 50,000 €, in prime locations also significantly more
• Rule of thumb: Compensation should be below the price difference between rented out and empty

Calculation example: An apartment in Munich with a cold rent of 1,200 € generates 480,000 € when rented out, and 620,000 € when vacant. Difference: 140,000 €. A severance payment of 30,000–50,000 € is economically sensible here, as net additional revenue of 90,000–110,000 € remains.

Landlord’s Right to View

Whether it’s a duplex apartment or a micro apartment – if you want to sell your apartment, you are allowed to arrange viewings. However, the right to view is clearly limited. The landlord must respect the tenant’s privacy, notify appointments in good time (usual: at least 3–4 days notice) and state the purpose.

What the courts consider reasonable:

• Maximum one viewing per week
• Weekdays between 10 and 7 pm, limited on Saturdays
• Notice period: at least 24 hours, better 3–7 days
• Viewing duration: max. 30–45 minutes per appointment
• Group viewings with multiple interested parties are allowed, but not mandatory

Tip from practice: Offer the tenant a small reimbursement (e.g. 50–100 € per appointment) or a one-time compensation. This significantly reduces conflicts and ensures cooperative appointments.

Private users: Termination due to personal need

Requirements for a valid termination due to personal need

If the landlord needs the apartment for themselves or close relatives, a termination due to personal need is possible – but only under strict conditions. A general statement is not sufficient; the need must be specifically and verifiable.

Who counts as “close relatives”:

• Spouses, registered life partners, children, parents
• Siblings, grandparents, grandchildren
• In-laws, in-law children (under certain circumstances)
• Caregivers for family members in the household

Notice periods in case of personal need

The statutory notice periods depend on the rental duration:

• Rental duration up to 5 years: 3 months notice period
• Rental duration 5 to 8 years: 6 months
• Rental duration over 8 years: 9 months
• In case of conversion: additional 3–10 year waiting period (§ 577a BGB)

Hardship clause and risks

The tenant can file an objection under § 574 BGB if the termination would cause particular hardship – for example, in cases of old age, serious illness, pregnancy or lack of alternative accommodation. In addition, caution is advised: if the stated personal need is not subsequently implemented (“fabricated personal need”), claims for damages in the five- or six-figure range may arise.

Requirements for an effective personal need termination at a glance:

• Lawful, specific interest of the landlord
• Personal use for themselves or close relatives
• Written justification with name and reason for the need
• Compliance with legal notice periods
• Observance of the blackout period after conversion
• Actual implementation after moving out is mandatory

Rented vs. vacant: The direct comparison

The decision “sell rented or sell vacant” has significant financial consequences. Here is a direct comparison of the most important factors:

Criterion	Rent out sell	Empty sell
Selling price	20–35 % below market value	100 % market value
Buyer group	Investors, investors	End-users + investors
Marketing duration	Often longer (3–6+ months)	Usually faster (1–3 months)
Evaluation standard	Rent multiplier / return	Comparative value / asset value
Viewing effort	High (tenant coordination)	Low (always possible)
Home staging possible	No	Yes
Risk of rental default	To be borne by the buyer	Not relevant
Negotiation room	Limited	Larger

Investors as target group: How investors think

Evaluation via the rent multiplier

While end-users buy emotionally and use comparative prices as a benchmark, investors evaluate real estate purely numerically via the rent multiplier (also: multiplier). The formula: purchase price ÷ annual net cold rent = factor.

Market factors per location:

• A-locations (Munich, Hamburg city center): factor 30–45
• B-locations (Dusseldorf, Stuttgart, Cologne): factor 22–32
• C-locations (medium-sized cities): factor 16–24
• D-locations (medium towns): factor 12–18

Example calculation: An apartment with a cold rent of 1,000 € (12,000 € per year) achieves a selling price of 420,000 € in Munich with a factor of 35, but only 264,000 € in Leipzig with a factor of 22. Anyone who is subletting should check before selling whether a legally secure rent increase is possible – every additional euro of monthly rent increases the selling price by the factor × 12.

Which types of investors are suitable?

• Private investor: Seeks 1–3 properties for retirement, factor-oriented
• Owner / Family Office: Buys portfolios, focuses on cash flow and location quality
• Fix-and-Flip Investor: Seeks properties with potential for value increase, often with expiring rental agreements
• Institutional investors: Relevant only from portfolio sizes upwards, high return requirements

Tax aspects when selling

Speculation tax (§ 23 EStG)

If an rented apartment is sold within 10 years after acquisition, speculation tax at the rate of your personal income tax rate (up to 45 % plus solidarity surcharge) applies to the profit. The period begins with the date of the notarized purchase contract – not with handover or land register entry.

Important points regarding the speculation period:

• 10 year holding period for rented properties</li
  ]]> https://lukinski.com/registered-businessman-registered-businesswoman-e-k-foundation-financing-liability-co/ Wed, 10 Mar 2021 16:19:31 +0000 https://lukinski.de/registered-businessman-registered-businesswoman-e-k-foundation-financing-liability-co/ Eingetragener Kaufmann (e. Kfm.) / Eingetragene Kauffrau (e. Kfr.) / Registered merchants (e. K.) – The registered merchants embody a German legal form variant, which is based on the corporate legal form of the sole proprietorship (EU). This means that it is a company that is founded and managed by a single person and is also obliged to be entered in the commercial register – hence the name. Learn everything important about it here! In addition, you will find all German company types and legal forms, as well as tips for founding a company, including the special case of real estate GmbH, family foundation & Co.

  Registered traders (e. K.) – foundation, financing, liability & Co.

  With regard to the legal form of sole proprietorships, a distinction is made between freelancers, small traders and registered merchants, with the latter being the only legal form variant that must be registered in the commercial register. However, the obligation to register only applies to merchants who are actively engaged in commercial trading – the so-called “gewerbetreibende Kaufleute”. They are also referred to as “actual merchants” and are generally assessed according to the German Commercial Code (HGB).

  

  If you are a sole trader and own a business but do not trade in it, you are considered an “optional trader” and have the choice of whether or not to have your business registered in the commercial register. If you decide not to register, you are subject to the German Civil Code (BGB) as normal. Typical “Kannkaufleute” are, for example, small traders and freelancers.

  You can find out more about the individual legal forms here:

  • Sole proprietorship (EU)

  Foundation & Company Name

  In comparison to the other two legal forms, the strictest requirements apply to the establishment of a company for commercial traders: In addition to applying for a tax identification number (tax ID) at your tax office and registering your company at the trade office, you are also required to have an entry made in the commercial register by a notary. At a cost of around 200 to 300 euros, you can thus secure the title of actual businessman or businesswoman. Only after completing this public registration do you have your own company in the legal sense.

  You are free to choose the type of company name in many respects, but it must provide information about your commercial status and also be distinguishable from the companies of other traders. You can form a personal company, which describes you as the owner in more detail, or a material company, which reveals more about your business purpose and the associated services, or even a fancy company… It is obligatory that you add the gender-neutral suffix “e. K.” – or alternatively “e. Kfr.” for registered businesswomen or “e. Kfm.” for registered businessmen – to the contingent liabilities of your sole proprietorship. In addition, you can consider registering your company and/or your business name as a trademark to protect your name or your company.

  Financing & profit distribution

  No minimum capital is required to set up a business as a registered trader. Of course, it is still advisable to have some reserves and to draw up a financing plan in order to be financially prepared in case of unpleasant surprises. In addition, you will incur some costs for the start-up alone, before you have even begun to make a profit with your company. The positive aspect: Your profits are 100 percent yours and you don’t have to share them with anyone!

  Liability, accounting & taxes for registered traders

  As a sole trader, you have unlimited liability, i.e. with your business assets as well as with your personal assets. By registering, you are obliged to keep accounts and regularly prepare balance sheets and inventories for your business. However, you are exempt from the obligation to publish your business figures and books. Unless you achieve an annual turnover of more than 130 million euros…

  

  A sole trader is always a natural person at the same time. Consequently, registered traders are, of course, first and foremost subject to income tax. In addition, according to tax law, further levies are provided for turnover tax and trade tax.

  • Income tax (ESt)
  • Value added tax (VAT)
  • Trade tax (GewSt)

  Registered trader (e. K.) – For whom is it worthwhile?

  Do you love the idea of being your own boss and not having to coordinate decisions with other shareholders or managing directors? Then the legal form of a trader could be just right for you! Uncomplicated formation process, zero minimum capital required and no partners, co-founders or shareholder teams to nag you or interfere…. You take the risk and you reap the rewards – 100%.

  Why should you register as a merchant? The legal form of a registered businessman (e. Kfm.) or registered businesswoman (e. Kfr.) is worthwhile for those who are prepared to take manageable risks in order to start their own business quickly and easily. You do not need enormous financial reserves and also pay relatively little tax on your profits. A sole proprietorship is therefore ideally suited for young entrepreneurs who not only dream of self-realization, but also want to take their lives into their own hands.

  Alternatives to the e.K.: Legal forms in Germany

  Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

  • Legal forms: List

  

  Company types in detail:

  • Sole proprietorship
  • Civil law partnership (GbR)
  • General partnership (OHG)
  • Limited partnership (KG)
  • Entrepreneurial company (UG)
  • GmbH: Limited liability company
  • Real estate GmbH / Asset management GmbH
  • Stock corporation (AG)
  • Real estate stock corporation (REIT-AG)
  • Societas Europaea (SE)
  • Foundation / Family Foundation
  ]]> https://lukinski.com/no-person-gmbh-inheritance-donation-termination-other-causes/ Mon, 08 Mar 2021 20:22:20 +0000 https://lukinski.de/no-person-gmbh-inheritance-donation-termination-other-causes/ No-Person GmbH – The model for a GmbH without shareholders! By appointing new shareholders or leaving existing shareholders, the limited company model you choose can easily change. Whether it’s a one-person company, a two-person limited company or even a company that operates without shareholders at all…. In either case, there are specifics you should be aware of as they deviate from the norm of the traditional limited company. Here you can find all legal forms and here, you can go back to the overview GmbH.

  No-person GmbH: The GmbH without shareholders

  The Kein-Personen-GmbH – or Kein-Mann-GmbH or Keinmann-GmbH – is a curiosity among German forms of corporate law, because it represents a GmbH that has no shareholders. In the Austrian version of the GmbHG, the acquisition as well as the pledge of own shares by the company is expressly prohibited in section 81 and declared ineffective. In Germany, on the other hand, there is no such restriction, which is why a GmbH there is granted the right, as a legal entity, to acquire its own shares without restriction. Thus, the acquisition of 100 percent of the business shares is also possible.

  Causes for a no-man GmbH: inheritance, donation, termination & Co.

  But how can there be a GmbH without shareholders? There may be different reasons for all GmbH shares to be owned by the GmbH itself: The GmbH can be registered as heir to the business shares and thus actually be left without a single shareholder in the event of inheritance – in the case of a one-person company or two-person GmbH, such a scenario is easy to imagine. Alternatively, the GmbH can also be given business shares by its shareholders or no shareholders remain in the GmbH on the basis of a caducation – i.e. the forced exclusion of shareholders who are not willing or able to pay and who have defaulted on their capital contribution in accordance with the articles of association.

  Further reasons are, for example, the sale of shares to the GmbH; the abandonment – i.e. the relinquishment – of shares by the shareholder(s) in favour of a consideration, usually the release or discharge from existing (payment) obligations; or also the withdrawal of shareholders through ordinary termination.

  Possible causes of the emergence of a no-person limited liability company:

  • Heritage
  • Gift
  • Caducation
  • Purchase/sale of shares
  • Abandon
  • Cancellation

  Establish a GmbH: Legal form and alternatives

  1. One-person GmbH: Solo founder
  2. Two-person GmbH: Founder Duo
  3. Limited liability company (GmbH)
  4. Special case: Real estate GmbH
  5. Legal forms: List

  One-person GmbH: Solo founder

  One-person GmbH – The GmbH model for solo founders! By appointing new shareholders or leaving existing shareholders, the GmbH model you choose can easily change. Whether it’s a one-person company, a two-person limited company or even a company that operates without any shareholders at all…. In each case, there are special features that you should be aware of, as they deviate from the norm of the conventional limited liability company.

  • One-person limited liability company

  

  Two-person GmbH: Founder Duo

  Two-person GmbH – The GmbH model for founding duos! By appointing new shareholders or leaving existing shareholders, the GmbH model you choose can easily change. Whether it is a one-person company, a two-person GmbH or even a company that operates without any shareholders at all… In each case, there are specifics you should be aware of as they deviate from the norm of the traditional limited liability company.

  • Two-person limited liability company

  

  Limited liability company (GmbH)

  Limited Liability Company (Gesellschaft mit beschränkter Haftung, GmbH) – The limited liability company is a German legal form that is founded by at least one person and managed by at least one shareholder. As the name already indicates, this corporate legal form is characterized by a limitation of liability for its shareholder(s).

  • Limited liability company (GmbH)

  

  Special case: Real estate GmbH

  Immobilien GmbH / Vermögensverwaltende GmbH / Immobiliengesellschaft – In this article you will learn the basics about real estate companies. Who would think of founding a limited liability company when buying a house or a condominium? Admittedly, this makes no sense for owner-occupation, but it does for renting.

  • Real estate company

  

  Here you will find all the legal forms that can be chosen as a founder in Germany and a guide with a checklist:

  Legal forms: List

  Legal forms – What types of company are there? If you want to start your first company, then choosing the ideal legal form is one of the first steps in the process of setting up a company. Whether it’s a special real estate company or a start-up, I’ve summarized all the types of companies in Germany for you here.

  • Legal forms: List

  

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