113 Questions about architecture - Do I buy a flat "gross" or "net"?
Do I buy a flat "gross" or "net"?
"Both are possible and depend on the planned type of use and the type of flat."
If you want to buy a flat as an investment property in order to rent it out over a long period of time, you can buy it "net". The property developer can claim input tax and the buyer benefits from this price advantage - however, they may not use the flat as a consumer, but may only rent it out for business purposes. He must rent it out for at least 20 years at market rates and a total profit must be realised within this period. A forecast calculation must be submitted to the tax office at the time of purchase or is often requested by the tax office to ensure that the "net purchase" option has been chosen correctly. The VAT collected on the letting must then be regularly paid to the tax office.
If you are unsure whether you really want to rent out a flat for such a long period of time, or if you are buying a flat to live in yourself, you are a consumer and the purchase price of a new-build flat is a "gross" price - i.e. it does not include VAT. In this case, however, the property developer cannot claim input tax and must also pay gross construction prices for the construction of this flat.
The price of a "second-hand" flat purchased by a private individual does not include VAT. In this case, gross equals net.
In addition to a technical inspection by an architect, the purchase of a flat should therefore also be discussed with a tax consultant - one and one equals three.
