Investment properties in Germany offer attractive tax advantages. With a residual useful life appraisal, you can optimize depreciation (AfA) — often increasing it from the standard 2% to 3–5% annually. Interest payments and transaction-related costs can also be deducted. Plus, after holding the property for 10 years, you can sell it tax-free — all capital gains are exempt.
Note: These tax benefits apply only to investment properties, not to owner-occupied homes.