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PROPERTY

The ten most expensive cities in Germany

Where are rents most expensive in Germany? A new survey unearths the ten cities you're handing out the most cash to live in.

The ten most expensive cities in Germany
What are the most expensive cities to live in in Germany? Photo: Wikipedia Commons

A new study conducting by online estate agent Immobilien Scout shows which are the least affordable cities in the Bundesrepublik (Federal Republic).

Residents of these cities are paying on average between 20 and 30 percent of their incomes in rent. But in the most sought-after neighbourhoods this proportion often rises above 40 percent.

Gallery: Germany's ten most expensive cities

“Lower the rent!” Photo: DPA

This is nothing compared to England where tenants give up half of their salary to pay their rents.

Nonetheless, in the most sought-after cities in Germany rent is rising as a proportion of income, leaving people with less money to enjoy the things that brought them to the town in the first place.

Mind you for those who have chosen to leave London to live in Germany's capital there will be comfort to know that while in the British capital they were paying an average of 72 percent of their salary in rent, in Berlin that proportion is still far, far lower.

The calculations were all 'cold rent' rent without bills as a percentage of after-tax income.

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INHERITANCE

EXPLAINED: How to write a will in Germany

German succession law is pretty clear on what happens to your assets if you die without a will. But there are some big advantages - particularly for foreigners - of writing one.

EXPLAINED: How to write a will in Germany

First and foremost, the largest advantage when it comes to writing wills as a foreigner in Germany – is the option to decide which country’s law applies when you write your will.

“Foreigners living in Germany have a huge advantage over German citizens, because you can choose the law of your own country for your will – even if you live in Germany,” says Andreas Moser, a Chemnitz-based immigration and family lawyer who runs a popular blog on German citizenship and family law. “Dual citizens who are German and have another nationality also have this advantage.”

READ ALSO: Everything you need to know about German inheritance law

Whether you want to do this of course, depends highly on the other country concerned and its law – and how much it differs from German law.

In specific detailed cases, you may want to consult a lawyer who specialises in wills and estates. One example of how German law may differ though is that many countries don’t have “forced heirship”, which requires you to leave certain shares of your estate to certain immediate family members.

By contrast, Germany has forced heirship. If, however, you would like to get around this for some reason, you can specify that your will should go under the other country’s law – if, for example, that country doesn’t have forced heirship.

This is unlikely, however, to result in people resident in Germany you leave assets to being able to get around inheritance tax, as this counts towards the receiver’s tax and not the deceased’s. However, there are other cases when using either country’s estate law might have different implications for certain assets – something a specialised lawyer can give you more information about.

If you want your other country’s rule to apply, make sure you specifically state that in your will.

EXPLAINED: The rules around inheritance tax in Germany

When should you definitely have a will?

Moser suggests that foreigners in Germany who want their native country’s law to apply write a will and specifically state that as their wish.

He also recommends wills in particular for those who have “patchwork” families, where one or both spouses have been married before or have children from previous marriages – in order to avoid complicated proceedings over who gets what.

A family sit at a lake.

Foreigners in Germany – even if they are dual German citizens – can choose the succession law they want to apply in their will. Image by Eva Mospanova from Pixabay

How should I write a will?

When it comes to composing a will, you have three main options:

The first is to write an international will that’s valid in your home country and that specifically states that you want the law of your home country to apply. 

The disadvantage of this approach is that your heirs may have to later pay to have it translated into German. You can also arrange to have an official German translation of it done.

Your second choice is to handwrite a will and sign it. This is known as a holograph will or Eigenhändiges Testament in German. It can be in any language, although again – your heirs may have to pay to have it translated later.

This option also avoids certain expensive legal fees – and you can state which country’s law you want to apply. However, for it to be valid, it must be entirely handwritten and include the date and place of signature. It cannot be typed and signed. If you’re concerned about the will going missing, you can deposit it with your responsible probate court for a fee of €75.

The final option is to write a public testament – which is prepared by a German notary. These wills are pretty ironclad but can be expensive – with fees that differ depending on the size of the estate. Once prepared, the notary will then file it with the public registry – so there is always a record of it.

READ ALSO: Do foreigners in Germany owe tax on money that is inherited from overseas?

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