Rent cap is unconstitutional!

Tip. At the end there is still the press review, the most important news from the real estate world, summarized. There are interesting things in the FAZ on the subject of “New life for houses of worship”, redesigning former churches, monument protection, and much more. You can find all real estate news directly here: Real Estate News.

As the capital and cultural city,Berlin is one of the most popular places to live in Germany. No wonder that rents have been rising in recent years and the real estate market seems more lucrative than ever before. Whether and if so when the rent cap will take effect again or landlords can continue to charge their high prices remains to be seen. Here you can find information about the current events around the rent cap in Berlin.

The law concerns a stock of:

340,000 to 512,000 apartments in Berlin

What does the rent cap say?

The rent cap was supposed to make affordable housing in the big city of Berlin possible again. According to estimates, the rents for 340,000 to 512,000 apartments fell, in some cases by several hundred euros. Much to the annoyance of landlords and property owners! Because they finally sued against the law.

After the rent cap in Berlin was ultimately declared unconstitutional by the Federal Constitutional Court, many landlords and owners breathed a sigh of relief. However, the discussion about high rents has not yet come to an end. In addition, rumours are spreading that the real estate giant Vonovia will merge with the real estate group Deutsche-Wohnen, which would result in the largest real estate deal in German history.

Tenants and landlords: Statistics

Tip. Here you can find even more statistics on housing, construction & real estate.

Public opinion: good or bad?

Do you think the Berlin measure of introducing a rent cap is rather good or rather bad?

Tenant Opinion:

• Rather good: 81%
• Rather bad: 14%

Total opinion

• Rather good: 71%
• Rather bad: 24%

You can find more statistics at Statista.

Opinion in the political parties

It is also interesting to take a look at the parties in Germany. Do you think the Berlin measure of introducing a rent cap is rather good or rather bad? Sorted by party preference.

• Party = rather good / rather bad
• Left = 85% / 11%
• Greens = 83% / 15%
• SPD = 79% / 13%
• CDU/CSU = 68% / 27%
• AfD = 60% / 33%
• FDP = 47% / 44

If you are planning to move to the capital, want to buy or sell a property, or already live there, we now show you an overview of the most popular and beautiful districts in Berlin.

Living in Berlin: Individual & colourful

Berlin is individual, creative and full of opportunities. More than 3.5 million people have relocated here. As an international location, Berlin is an attractive place to live for people from all over the world. While the district Wilmersdorf in Charlottenburg convinces with its well-kept green areas, the residential areas Prenzlauer Berg and Weißensee in Berlin-Pankow inspire with their unbeatable prices and central location. You want to sell your apartment, your apartment building or your property in the world metropolis Berlin? With our free guides and tips on the topics of real estate sales and real estate valuation, you are well prepared. Read more here:

• Living in Berlin

The most popular neighborhoods to live and reside in are:

1. Pankow
2. Charlottenburg
3. Wilmersdorf
4. Friedrichshain-Kreuzberg
5. Prenzlauer Berg
6. Kreuzberg
7. Wannsee
8. Steglitz
9. Schöneberg

Sell property in Berlin

The city is characterized by numerous sights and recreational areas, but also by the good infrastructure. As a place to live, Berlin is very popular with people of all ages. If you decide to offer a property for sale in Berlin, you can usually achieve purchase prices that are above average compared to other German cities of this size. The purchase price per square metre has increased by around 65% within the last 4 years.

• Read more about selling property in Berlin

Real estate giant: Merger of Vonovia & Deutsche-Wohnen

It would be the biggest deal in the history of the German real estate market. The billion-dollar real estate companies Vonovia and Deutsche-Wohnen want to merge. What was repeatedly rejected by Deutsche-Wohnen in the past is now set to become reality. Vonovia’s takeover bid is attractive and promising. Both the Vonovia share and the Deutsche-Wohnen share have risen in value in recent years. You can find more information here:

• Mega Deal Vonovia & Deutsche Wohnen

Real Estate News:

The Süddeutsche Zeitung says “Vonovia does not have to become a rent shark”. The Handelsblatt even headlines “Share deals loophole: Why the merger of Vonovia and Deutsche Wohnen is triggering a tax debate” and ARD warns “Merger plans alarm tenants”. The headlines are now familiar. Here is more news from the real estate industry:

Focus Online: KfW loan saves real estate buyers thousands

The Focus Online blog reports on “Study shows: Who should pay? In some regions, buyers boycott exaggerated real estate prices now” and “Construction financing: Building money has never been so cheap” . More news and current laws:

• Guest article by Carsten Zimmermann: KfW loan saves property buyers thousands – but now the subsidy is becoming a lottery prize!
• Study shows: Who’s going to pay for it? In some regions, buyers are now boycotting exorbitant real estate prices
• Construction financing: Building money has never been so cheap

IM Immobilienmanager: Warburg-HIH Invest buys police headquarters near Cologne

This week at IM Immobilienmanager among others articles about “Warburg-HIH Invest acquires new police headquarters near Cologne” and “ISG Germany appoints new managing director” . You can find more news here:

• Eligible Daikin technology in all product areas
• ISG Germany appoints new managing director
• Warburg-HIH Invest acquires new police headquarters near Cologne

Frankfurter Allgemeine: New life for houses of worship

The Frankfurter Allgemeine reports this week, for example, “New life for houses of worship: What can become of churches” and “Changing neighbourhoods: Images of memory”. More news from the past days:

• New life for places of worship: what can become of churches
• House on offer: Tenant desperately sought
• Changing Neighbourhoods: Images of Memory

Haufe: Will housing become more expensive?

New in the business section of Haufe this week is, among others, “Solar obligation in Baden-Württemberg: Will housing become more expensive?” as well as “Who comes, who goes? New CEO at Dr. Klein Wowi Digital; IC Group replaces management” . More real estate news for tenants, buyers and sellers:

• Compulsory solar energy in Baden-Württemberg: Will housing become more expensive?
• Reliable IT security for companies – but how?
• Who’s coming, who’s going? New CEO at Dr. Klein Wowi Digital; IC Group replaces leadership

T-Online: Housing prices continue to rise faster than rents

This week T-Online has topics such as ” Real estate collapse in major cities – experts warn of real estate bubble ” and ” Expensive CO2 participation – landlords demand Seehofer’s resignation ” . New topics of the week:

• “Overheating” – house prices continue to rise faster than rents
• Expensive CO2 participation – landlords demand Seehofer’s resignation
• Real estate collapse in major cities – experts warn of real estate bubble

Berlin.de: Vonovia with audit process

New articles and posts from Berlin.de this week include “Rent brake for municipal apartments in Berlin ” and “Expropriation initiative has almost 200,000 signatures” . More headlines of the week:

• Rent brake for municipal apartments in Berlin
• Senate: After housing offer from Vonovia with review process…
• Expropriation initiative has nearly 200,000 signatures

Immobilien Zeitung: Hamburg is building apartments like it last did in 1974

This week Immobilien Zeitung has interesting topics such as “Hamburg builds as many apartments as last 1974” and “Sometimes only a pharmacy and a supermarket remain of the trade” in the magazine. The posts and more tips can be found here:

• Hamburg builds as many apartments as last in 1974
• Apartments are also in short supply in Marburg
• Sometimes all that remains of the trade is a pharmacy and a supermarket

Spiegel: Social promises of the real estate bosses?

This week’s Spiegel is about “”The sheer size may worry one or the other”” and “What good is the social promise of the real estate bosses?” . More news from this week:

• What good is the social promise of the real estate bosses?
• Real estate groups offer Berlin thousands of apartments for sale
• “The sheer size may worry one or two”

Der Beitrag Berlin rent cap overturned! Constitutional Court ends experiment – retroactive rent payment threatens erschien zuerst auf ℄ Real Estates.

Selling: Reasons from business closure to inheritance

Age, financing pressure or spontaneous inheritance – When a forest property is to be sold or has to be sold, it is therefore also often an emotional matter for the seller side. As I said, quite different from typical building land.

Nevertheless, it happens that a property is to be sold or has to be sold. Sometimes it is a financial reason, for example due to ongoing financing that requires liquidity, sometimes it is a spontaneous inheritance or an early gift…

What to do with a forest plot?

Location of the property – Especially if the property is not in your own region and is 200 km, 300 km or even further away from your home.

When the time comes, it’s on to the big question:

How do I sell (m)a forest plot?

Those who have not had any experience in selling real estate or land face a lot of challenges:

• How does a land sale work?
• What is the very, very first step?
• Can any broker sell forest land? In terms of personal network and expertise
• What are the typical mistakes when selling real estate?
• What taxes are due on the sale?
• …

Many rely on a regional real estate agent whom they know from their personal circle of friends, for example, or have received as a recommendation.

But, does this real estate agent have the right contacts in his network? In the end, your forest plot will only end up on various portals and accordingly everyone will know that your forest plot is for sale.

Is that what you want?

Tip: Trade your woodland property off market.

Forest valuation: Valuation of forests

What is a spruce forest still worth? A typical question, especially if you yourself have not been active in trading for a while and / or do not have time, for example because it is a small part of your own investment portfolio.

The condition of the forest is of course the criterion for the offer price, but also for the ultimate selling price of your forest. Has the forest been maintained or is it lying fallow? Location, transport connections but also the condition of the terrain are further value factors.

Forest evaluate, among others by:

• Condition of the forest
• Sustainable care of the forest
• Soil quality; forest soil expertise
• Location and transport links
• Condition of the terrain

Some factors increase the price, others decrease it. The valuation should always be carried out by an expert, i.e. a surveyor. The geotechnical expert, a civil engineer or geologist, prepares the soil expertise on site.

Selling forest land: Expiration

Of course, at this point we can’t give you a one-to-one guide to how land sales work in each individual case. Especially when it comes to the forest floor, there are still special factors to consider. But to give you a rough idea, we would like to refer you to our guide to selling land.

Checklist: Fast track forest sale

That’s how it works:

1. You should allow sufficient time for your forest sale
2. Valuation by an expert
3. Broad marketing on portals OR targeted off market sales
4. Credit assessment and buyer selection
5. Purchase contract and notary appointment

Here we show the different phases, from the first step, to the purchase contract and the settlement.

• Sell land

Sell the land and the spring?

Anyone who already owns land is familiar with the subject, but anyone who has spontaneously come into possession of their own forest land, as described for example by inheritance, divorce, donation, has many questions! It becomes particularly interesting when the forest plot not only has good quality soil, but also its own water source.

Sell water source: special case

With sufficient capacity (millions of liters / year), you have quite an interesting piece of land, for very many investors. Would you have thought of buyers from the food industry before the sale? Especially large food companies are very hot on quality water sources, because water sources are one of the most sought-after raw materials today. Just think of the water shortages that already exist today, even in countries like Spain or South Africa, when there is no water from the ground for weeks in the summer.

If you happen to have come into possession of a water source and are wondering, what do I do with it? Read more about the topic here:

• Sell water well

Der Beitrag Selling forest land: Forest, meadow, valuation, taxes & Co. erschien zuerst auf ℄ Real Estates.

Value added tax (VAT) – tax for delivery & service

Value added tax – VAT for short – is usually levied on all turnover generated by a company in Germany for VAT purposes. This includes all supplies and services – as well as occasional ancillary transactions – that the company provides against payment as part of its business activities. VAT amounts that a company has paid for supplies and services it has received and that can be substantiated can be claimed as input tax deductions and thus reduce the entrepreneur’s VAT burden.

From an economic point of view, the own turnover tax thus represents a general consumption tax, but in Germany it ultimately functions as a transfer tax and is ultimately charged to the end consumer. Because it is passed on, sales tax is typically classified as an indirect tax. Currently, the standard German VAT rate is 19 percent – 7 percent on reduced goods – and is one of the main sources of revenue for financing the federal budget.

Other taxes for businesses:

• Corporate income tax (KSt)
• Income tax (ESt)
• Capital gains tax (KapESt)
• Trade tax (GewSt)

If you want to learn more specifically about taxes for real estate companies, you can learn more here:

• Save taxes on real estate

Which companies are subject to VAT?

Most companies do not only carry out tax-exempt turnover and are therefore naturally burdened with turnover tax. Therefore, this type of tax is basically relevant for all common legal forms of companies, starting with sole proprietorships (EU) and BGB companies (GbR)… to the general partnerships (OHG) and limited partnerships (KG)… to the limited liability companies (GmbH) as well as the stock corporations (AG).

In common parlance, the term value added tax – VAT for short – is often used and is sometimes also indicated on invoices or receipts. The name comes from the understanding that a tax is levied in trade and production at several stages of the value chain, whereas VAT uses the turnover generated from a sale or in a similar way as the basis of assessment. In purely fiscal terms, however, the term value added tax is no longer used in Germany; instead, there is talk of a sales tax with input tax deduction.

Overview of company law forms

You can find more information about the different legal forms under the following links. Starting with the sole proprietorship and the registered traders… to the various partnerships and corporations… to other companies such as the family foundation – all the essential aspects of formation, liability, tax burden and more explained simply and understandably! First of all, an overview of the individual legal forms of companies:

• Sole proprietorship (EU)
  • Freelancer
  • Small business
  • Registered traders (e. K.)
• Silent partnerships
• BGB companies / civil law partnership (GbR)
• Partnerships
  • Limited partnership (KG)
  • General partnership (OHG)
  • Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
  • Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)
• Corporations
  • Stock corporation (AG)
    • AG & Co KGaA
  • Partnership limited by shares (KGaA)
  • Limited liability company (GmbH)
    • GmbH & Co KGaA
  • Entrepreneurial company / UG (limited liability)
  • European Company / Societas Europaea (SE)
    • SE & Co KGaA
• Other companies
  • Foundations / Family Foundations
  • Insurances
  • Partnerships
  • Registered associations (e. V.)
  • Registered cooperatives (e. G.)

Taxes in Germany: List

Corporation tax (KSt), income tax (ESt), capital gains tax (KapESt), turnover 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 business, depending on which legal form you have chosen. Also, after the tax list: How does the tax cycle work around month-end closing, year-end closing and balance sheet? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

• Taxes: List

Der Beitrag Value added tax (VAT) simply explained: amount, delivery & service – “VAT” for companies erschien zuerst auf ℄ Real Estates.

Income tax (ESt) – tax for natural persons

Income tax – ESt for short – is usually levied on the income of natural persons, according to their ability to pay. Income is understood as the sum of all income earned within the meaning of the Income Tax Act (EStG) minus the sum of all deductions relevant under tax law – such as any allowances. Taxable individuals are divided into self-employed persons, who generally have to pay their income tax themselves, and employees, whose income tax is withheld by their employer in the form of wage tax and paid to the tax office on their behalf.

Other taxes for businesses:

• Corporate income tax (KSt)
• Capital gains tax (KapESt)
• Value added tax (VAT)
• Trade tax (GewSt)

If you want to learn more specifically about taxes for real estate companies, you can learn more here:

• Save taxes on real estate

Income tax in detail – collection, levy & tax liability

As a joint tax, this tax revenue is divided between the federal, state and local governments. The municipalities receive the rate applicable under federal law – currently 15 percent of wage tax and assessed income tax – while the remainder goes to the federal government and the states in equal shares. Overall, all natural persons are generally liable to income tax and must pay tax on their income derived from self-employed and non-self-employed activities. The basic principles of income tax law are as follows:

• Net principle
• Periodicity principle
• World Income Principle
• Principle of differentiated rates
• Ability-based taxation

Individuals resident in Germany are subject to unlimited tax liability; individuals resident abroad who earn income in Germany are subject to limited tax liability.

Allowance for low earners & Deductible business expenses

Natural persons with low income can use an allowance for themselves up to a current amount of 9,168 euros – this applies to both income from self-employment and income from non-self-employment. Entrepreneurs with income tax liability can also declare the following deductible business expenses in order to reduce their profits and, as a result, their taxable income:

• Rental costs
• Car costs
• Personnel costs
• Depreciation
• Deductible input tax
• Sales tax paid
• Purchases of goods & services
• Expenses for low-value assets

Which companies are subject to income tax?

Most natural persons are charged with income tax. Therefore, this type of tax is particularly relevant for sole proprietorships (EU) and BGB companies (GbR). In addition, general partnerships (OHG) and limited partnerships (KG) are usually subject to income tax. However, income tax may also be obligatory for a limited liability company (GmbH) or a stock corporation (AG), if applicable.

Partnerships such as the general partnership (OHG) or the limited partnership (KG) are generally not subject to corporation tax or income tax, but the natural persons and legal entities with partner status belonging to them are. The profit generated by the partnership is subject to uniform and separate determination and is allocated directly to the individual partners in accordance with their legal form: Legal entities must charge their profit shares to corporation tax, natural persons to income tax.

• Partnerships: Natural persons with profit shares

Overview of company law forms

You can find more information about the different legal forms under the following links. Starting with the sole proprietorship and the registered traders… to the various partnerships and corporations… to other companies such as the family foundation – all the essential aspects of formation, liability, tax burden and more explained simply and understandably! First of all, an overview of the individual legal forms of companies:

• Sole proprietorship (EU)
  • Freelancer
  • Small business
  • Registered traders (e. K.)
• Silent partnerships
• BGB companies / civil law partnership (GbR)
• Partnerships
  • Limited partnership (KG)
  • General partnership (OHG)
  • Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
  • Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)
• Corporations
  • Stock corporation (AG)
    • AG & Co KGaA
  • Partnership limited by shares (KGaA)
  • Limited liability company (GmbH)
    • GmbH & Co KGaA
  • Entrepreneurial company / UG (limited liability)
  • European Company / Societas Europaea (SE)
    • SE & Co KGaA
• Other companies
  • Foundations / Family Foundations
  • Insurances
  • Partnerships
  • Registered associations (e. V.)
  • Registered cooperatives (e. G.)

Taxes in Germany: List

Corporation tax (KSt), income tax (ESt), capital gains tax (KapESt), turnover 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 business, depending on which legal form you have chosen. Also, after the tax list: How does the tax cycle work around month-end closing, year-end closing and balance sheet? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

• Taxes: List

Der Beitrag Income tax (ESt) simply explained: forms, basic table, wage tax & Co. erschien zuerst auf ℄ Real Estates.

Corporate income tax (KSt) – tax for legal entities

Corporate income tax – KSt for short – is usually levied on the income or profit of legal entities domiciled in Germany and is thus complementary to income tax (ESt), which is usually levied on individuals. Taxable persons typically include corporations, associations, cooperatives and foundations. A limitation of corporate income tax comes into play, for example, if the management and headquarters of the legal entity are located abroad. Political entities, federal companies, state banks and social security funds, professional associations and some others are fully exempt from the obligation to pay corporate income tax.

Other taxes for businesses:

• Income tax (ESt)
• Capital gains tax (KapESt)
• Value added tax (VAT)
• Trade tax (GewSt)

If you want to learn more specifically about taxes for real estate companies, you can learn more here:

• Save taxes on real estate

Corporate income tax in detail: collection, levy & allowances

As a corporate tax, corporate income tax counts as a community tax and is levied by both the federal government and the states. The amount of the levy is calculated on the basis of the taxable income, which is the result of the profit less special expenses and extraordinary burdens, and is currently 15 percent plus the solidarity surcharge (SolZ), resulting in an overall tax rate of 15.825 percent. Corporate income tax is payable quarterly on March 10, June 10, September 10 and December 10 in equal instalments as an advance payment and is offset against the actual tax liability at the end of each fiscal year.

Dates for advance payment of corporate income tax:

• March 10
• June 10
• September 10
• December 10

As a rule, the corporate income tax return must be filed by 30 April of the following year at the latest for the preceding tax period. Extensions are possible under certain circumstances. Members of the tax advisory professions are generally subject to different deadlines for filing the corporate income tax return.

Allowances for companies without profit distribution

Companies that do not distribute profits – for example non-profit associations – can benefit from a tax-free allowance of currently 5,000 euros, whereas agricultural and forestry cooperatives and associations may be entitled to a tax-free allowance of 15,000 euros. For companies that record losses within the valid tax period, taxation does not apply at all.

Which companies are subject to corporation tax?

Most legal entities are subject to corporate income tax. All corporations – limited liability companies (GmbH), stock corporations (AG), partnerships limited by shares (KGaA), etc. – as well as cooperatives and business cooperatives are usually affected. In addition, mutual insurance companies and mutual pension fund associations have to meet their corporate income tax obligation, as do institutions, foundations, associations, etc. Commercially active public corporations – for example, transport companies or public utilities – are also affected by corporate income tax.

• Associations
• Institutions
• Foundations
• Corporations
• Acquisition cooperatives
• Business cooperatives
• Mutual insurance companies
• Mutual pension funds
• Commercially active public bodies

Partnerships such as the general partnership (OHG) or the limited partnership (KG) are generally not subject to corporation tax or income tax, but the natural persons and legal entities with partner status belonging to them are. The profit generated by the partnership is subject to uniform and separate determination and is allocated directly to the individual partners in accordance with their legal form: Legal entities must charge their profit shares to corporation tax, natural persons to income tax.

• Partnerships: Legal entities with profit shares

Political parties, professional associations, charitable corporations and federal corporations are generally exempt from corporate income tax.

Overview of company law forms

You can find more information about the different legal forms under the following links. Starting with the sole proprietorship and the registered traders… to the various partnerships and corporations… to other companies such as the family foundation – all the essential aspects of formation, liability, tax burden and more explained simply and understandably! First of all, an overview of the individual legal forms of companies:

• Sole proprietorship (EU)
  • Freelancer
  • Small business
  • Registered traders (e. K.)
• Silent partnerships
• BGB companies / civil law partnership (GbR)
• Partnerships
  • Limited partnership (KG)
  • General partnership (OHG)
  • Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
  • Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)
• Corporations
  • Stock corporation (AG)
    • AG & Co KGaA
  • Partnership limited by shares (KGaA)
  • Limited liability company (GmbH)
    • GmbH & Co KGaA
  • Entrepreneurial company / UG (limited liability)
  • European Company / Societas Europaea (SE)
    • SE & Co KGaA
• Other companies
  • Foundations / Family Foundations
  • Insurances
  • Partnerships
  • Registered associations (e. V.)
  • Registered cooperatives (e. G.)

Taxes in Germany: List

Corporation tax (KSt), income tax (ESt), capital gains tax (KapESt), turnover 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 business, depending on which legal form you have chosen. Also, after the tax list: How does the tax cycle work around month-end closing, year-end closing and balance sheet? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

• Taxes: List

Der Beitrag Corporate income tax (KSt) simply explained: UG, GmbH & other legal forms erschien zuerst auf ℄ Real Estates.