I dealt with very helpful German agents. They look after me long after the sale completed. Funnily enough the agents Brother is an Accountant and his office is right opposite the land I bought!

I didnt bother with rent, I went for a capital growth play. I realise this isnt for everyone but my reasons are sound. Well located land in the S East of England became extremely valuable after our recession and despite having not enjoyed any rent owners of such assets made substantial returns often far greater multiples of thier capital outlay than those that outlayed the same sum of built property.
I could list a lot of examples I know of personaly in my area.

I went for land with building permission for commericial and residential property. It is my belief that well located land will become valuable as the German economy turns the corner, and that land with dual useage gives me exposure to 2 different markets. In the German captial land will at some point become in short supply. My gamble is that time will arrive sooner than expected.

So in terms of income Tax I cant help.

Here is a Tax resource for Germany;

Welcome to expattax accountants and tax consultants


I can give you my agents contact details, but Id rather only do so if you become farily definite about Berlin.

BTW the agent showed me some great refurbed appartments due for completion about now I think. They were in a trendy up and comming young area called Freiderickshaine (sp). Reminded me of an immature Camden, and eefinately an area that should do very well out of any economic recovery.