Marriage and property purchase

Have you recently married? Congratulations! Or are you about to get married? This is the time when many couples think about buying a house in saxony. There is a lot to be said for it: tax relief for married couples helps with financing, the planned family needs space. It is therefore appropriate to put into action the long-cherished plan "buy a house" or "buy a condominium.

Buying a house or condominium: taking advantage of tax relief through marriage

Especially the tax relief after the wedding is an argument for buying a house in dresden, chemnitz, zwickau or leipzig. Married couples and families receive special protection under our basic law: this is particularly evident in financial matters. When it comes to income tax returns, married couples benefit from spousal splitting, and statutory inheritance laws also put them in a better position. If you are thinking about buying a house in dresden, chemnitz, zwickau or leipzig after your wedding, you know that your partner or. Your wife later inherits the property. With the tax savings from spousal splitting, they can more easily finance the purchase of a house or condominium. In order to take advantage of splitting, you have to be taxed together as a married couple. Then the tax office adds up their incomes, applies a tax rate to them and then halves (splits) the amount on which each partner pays their income tax. Splitting is particularly worthwhile in the case of a high income difference. The partner with the slightly lower income pays slightly more tax, but the one with the significantly higher income gets a much bigger tax break. The relief can be so high (several hundred euros per month) that you can use it to finance a considerable part of the house purchase in saxony.

Buying a house or an apartment – after or before the wedding?

It is difficult to give advice in this regard, because with a higher difference in assets between the two partners, either one or the other constellation is more favorable for each of them. If you are both equally wealthy before the wedding, you do not need to worry too much about this aspect. Just make sure that you both have equal rights in the land register, even if you are planning to buy a house or an apartment before the wedding. The situation is different if one of you has considerably more money and wants to use it as a down payment for buying a house in dresden, chemnitz, zwickau or leipzig. In the event of divorce, this partner would be at a disadvantage if he/she bought the property before marriage, because he/she would then lose half of the contributed assets in the equalization of gains. Let us illustrate this with the following example.

Buying a house in Saxony

Isabell and holger plan to get married and buy a house in dresden, chemnitz, zwickau or leipzig at the same time. Isabell has 50.000 € saved, holger unfortunately not. The couple acquires for 300.000 a property, whereby isabell pays 50.Can bring in € 000 for the down payment. The couple finances the remaining sum of 250.000 and has himself entered in the land register as the owner with equal rights. Unfortunately, their marriage breaks down after a few years, in the divorce proceedings they undergo the equalization of gains. In this case, the court compares the development of assets of both spouses during the marital period. Since they have at least partially repaid the real estate loan, their joint assets have increased by. This is the gain. The partner for whom this is higher must give half of it to his ex-partner. There are now two scenarios:

  1. Isabell and holger got married first and then decided to buy a house or a condominium. This is favorable for isabell because her initial assets are reduced by 50.000 € higher, which reduces your profit. Should, for example, a house due to increased real estate prices at the time of the divorce proceedings even 400.000 (after repayment of the mortgage), holger's gain would amount to 200.0000 €, but isabell's only 150.000 €. She can pay 50.Deduct € 000 as initial assets. The court decides that holger must pay her half of the difference in the gain. That would be 25.000 €.
  2. Isabell and holger bought a house before the wedding. Although isabell has her 50.The couple, which is jointly registered in the land register, enters into the marriage with a property that is half owned by isabell and half by holger, which results in equal initial and final assets for both partners after the divorce. Accordingly, there is no equalization of gains. Isabell has thus given her husband half of her savings as a gift. Because this gift was made before the marriage, it will not be taken into account by the court in the event of divorce.

Her parents will advise isabell to wait until after her wedding before buying a house in dresden, chemnitz, zwickau or leipzig. Holger's parents will advise him (if they find out about isabell's financial situation) to buy a house or an apartment before marriage if possible. The decision ultimately rests with the bride and groom, who we do not know how well they understand the situation. Currently hovering in the 7. Heaven and do not like to think about a divorce at all. However, it may be prudent to think about this.

Buying a house in saxony: how have the prices developed??

Anyone thinking of buying a house or condominium in saxony will undoubtedly have to dig deeper into their pockets in 2022 than they did a few years ago. Prices have risen in the last decade, especially in the metropolises. However, with the exception of a few residential areas in leipzig, they are nowhere near the level of munich, hamburg or berlin. In the surrounding area of the cities mentioned are even some bargains to be made.

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