Engel & Völkers

Commercial property guides

View into a rustic restaurant with industrial-style lamps

Repurposing: which spaces are suitable?

A change of use refers to a situation in which property owners intend to use a building or structure differently in the future than originally stipulated in the zoning plan. This may become necessary when the owner’s needs or the requirements for the use change. One common example is the conversion of a department store into an office building. Under certain conditions, residential use may also be an option. In times when housing is scarce and large department stores are closing, the topic of change of use is therefore becoming increasingly relevant for property owners. But what does it actually involve when changing the designated use of a building? We explain which spaces are suitable for repurposing, which legal requirements apply, and how much such a measure can cost.

Elegant white townhouse with arched windows, balconies and a tree in the foreground under a clear blue sky.

Taxing rental income

The amount of tax on your rental income depends on your personal income tax rate. If you incur losses from renting or leasing, this has a positive effect on the taxation of your other income. However, for persistent losses, you may be accused of "hobby activity." In such cases, you should consult a tax advisor.

The image shows the hands of a woman and a man, gesturing as they negotiate a contract.

Why do buyers need a Letter of Intent?

“A letter of intent is a declaration of intent,” says Torben Heydecke, Managing Director of Engel & Völkers Commercial Karlsruhe. “In it, the seller of a property and the potential buyer document their intention to conclude a contract soon under certain conditions.” Accordingly, a letter of intent already specifies details of the planned transaction, including the purchase price and other terms.

Sailboats in the marina of Mallorca, with the cathedral visible in the background.

How do you inherit a house abroad?

Many Germans today own property abroad. They use it for vacations, to generate regular rental income, or as an investment. But how should one plan the estate of such a property?

Several electricity meters mounted in a row on the wall

What are operating costs?

We are talking about operating costs, also known as additional rent or second rent. Which items are included and appear in the annual statement?

The image shows the Cathedral of Saint Mary in the Spanish port city of Palma on the Balearic Island of Mallorca

Why investing in Mallorca is worthwhile

Do you know the Beckham Law? Anyone interested in a real estate investment in Mallorca may already have heard of it. It provides tax benefits for foreign investors who reside on the island.

Your Shop

Engel & Völkers Deutschland

Page content provided by: Engel & Völkers GmbH

License partner of Engel & Völkers GmbH

+49 40 361310