The German property terms nobody translates for you.

Tax

AfA Absetzung für Abnutzung

The annual depreciation allowance you can deduct against your taxable income for the building (not the land) portion of a property. For most residential units it's 2% of the building's value per year over 50 years. AfA is one of the two big tax-deduction levers (alongside mortgage interest) that the Moderna model relies on.

Finanzamt Federal tax office

The German tax authority. Files your annual return, refunds overpaid income tax, and audits high-income filers more closely than you'd expect. Refund timing is typically 4 to 12 weeks after filing.

Steuerberater(in)

A licensed German tax advisor. Required for property investors at most income levels. Their fees are themselves tax-deductible. Moderna's in-house Steuerberaterin handles client filings.

Solidaritätszuschlag "Soli"

A 5.5% surcharge on your income tax. Originally introduced after reunification, partially abolished in 2021 but still applies to high earners (roughly the top 10%). On your payslip, it's the line right under Lohnsteuer.

Spekulationsfrist Speculation period

The 10-year holding period after which you can sell a rental property and pay zero capital-gains tax on the profit. The single most important number in German private real-estate investing. Selling at year 9 versus year 10 is the difference between paying 42% on the gain and paying nothing.

Werbungskosten Income-related expenses

The umbrella category for deductible costs related to earning rental income: interest, AfA, management fees, repairs, travel to the property, even the fee for the Steuerberater. The bigger the Werbungskosten, the bigger your refund.

Banking

SCHUFA

Germany's main credit-bureau scoring system. Banks pull your SCHUFA before approving a mortgage. You can request your own free SCHUFA report once per year at schufa.de. A clean SCHUFA is the single most common gate-keeper for expat mortgage approval.

Sondertilgung Extra repayment

A clause in most German mortgages that lets you make additional principal payments above the scheduled rate (typically up to 5% per year) without penalty. Moderna clients use this to recycle Finanzamt refunds directly into faster debt reduction.

Vollfinanzierung 100% financing

A mortgage that covers the full purchase price (you bring closing costs). Common for high-income expats with clean SCHUFA.

110-Prozent-Finanzierung

A mortgage that covers the purchase price plus the Nebenkosten (closing costs of about 5.5 to 7%). Possible with strong credit; not the default. Carries a slightly higher rate.

Zinsbindung Interest-rate lock period

How long your fixed rate is guaranteed. Standard options are 5, 10, 15, or 20 years. 10-year Zinsbindung is the workhorse choice; 15 or 20 is the conservative play when rates are low.

Property and legal

Notar Notary

In Germany, every real-estate transaction must be signed in person at a state-licensed notary's office. The Notar reads the contract out loud in full and answers questions before you sign. Their fee (about 1 to 1.5% of the price) is part of Nebenkosten.

Nebenkosten Closing costs

The added costs on top of the list price: real-estate transfer tax (3.5 to 6.5%, varies by Bundesland), notary fees (~1.5%), and land-registry fees (~0.5%). In Bavaria, total Nebenkosten typically run 5.5 to 7%.

Grunderwerbsteuer Real-estate transfer tax

A one-time tax paid when title transfers. In Bavaria, it's 3.5%. In other Bundesländer it goes up to 6.5%. Paid at closing, included in Nebenkosten.

Grundbuch Land registry

The official register of who owns what land in Germany. Property ownership only legally transfers when the Grundbuch is updated, which typically happens 2 to 6 weeks after the notary signing.

Sorglos-Paket "Worry-free package"

A bundled ongoing property-management service: tenant placement, rent collection, maintenance coordination, annual statements. Moderna's 360° Sorglos-Paket covers all of this so clients never have to act as landlord.

Mietausfallversicherung Rent-default insurance

An insurance product that pays out if a tenant stops paying rent. Roughly 0.5 to 1% of annual rent, depending on coverage. Standard in our underwriting model for first-time investors.

Speckgürtel Munich commuter belt

Literally "bacon belt". The ring of high-demand suburbs around Munich (Starnberg, Grünwald, Pullach, etc.) where yields are stronger than the city core. Most of our off-market deals are in or just outside this ring.

Residency

Blue Card EU Blue Card

The EU residence permit for non-EU professionals earning above a salary threshold (in 2026: €48,300 for most fields, €43,759 for shortage occupations). Many domestic banks still treat Blue Card as a risk flag, which is why we partner with specialists who don't.

Niederlassungserlaubnis Permanent residence

The unlimited residence permit. Typically available after 33 months on a Blue Card with sufficient German skills (or 21 months with B1 German). Lifts most bank-side friction for property financing.

Anmeldung Address registration

Required German residency registration with your local Bürgeramt. Without an Anmeldung you cannot open most bank accounts. Moderna helps new clients with paperwork if they're in the first 90 days.