Retirement under palm trees: What future does the home property have?

Many people dream of spending their retirement somewhere with a milder climate, a more relaxed lifestyle, and perhaps lower living costs. However, anyone leaving Germany for an extended period faces a crucial question: What should happen to their house or apartment? Should the property be kept as a safety net, rented out, or is selling the more sensible option? Making a decision early provides clarity and prevents the property from becoming a burden from afar.

Keeping the property – security or additional responsibility?

For many homeowners, their own home is more than just an asset. It offers security, creates an emotional bond, and can keep open the possibility of returning to Germany later. At the same time, ongoing costs accrue even during extended absences. Insurance, property taxes, maintenance, and repairs still need to be organized and paid for. Furthermore, damage or technical problems cannot always be resolved remotely. Anyone wishing to keep their property should therefore realistically assess whether the organizational and financial burden fits with their new life plans in the long term.

Rent, secure a return option, or sell?

Renting out a property can generate regular income and help cover ongoing expenses. However, it also entails responsibility towards tenants and involves effort in administration, accounting, and maintenance. Especially when living abroad, reliable local support is therefore crucial.

Those who wish to keep the option of a later return open can initially retain ownership and, if necessary, rent it out temporarily. Whether this model is sensible and legally permissible should be examined on a case-by-case basis. Selling, on the other hand, offers the opportunity to free up capital and release oneself from ongoing obligations. The proceeds can be used for living expenses, a property in the new location, or as a financial reserve. Especially when permanent emigration is planned, a sale prepared in advance can provide greater freedom.

Before the move: Clearly define administration and responsibilities

Anyone keeping their house or apartment should make binding arrangements before leaving for who will take care of the property. A trusted person or professional property management company can be the point of contact for tenants, tradespeople, insurance companies, and authorities. Powers of attorney, easily accessible contact information, and organized access to important documents also significantly simplify the process.

Additionally, it's worthwhile to clarify tax and legal issues early on. Rental income, a later sale, or a change of residence abroad can have various consequences. Expert advice helps to avoid unnecessary risks and manage the property in line with your personal retirement plan.

Your retirement is beginning – but your property still needs a clear plan. We support you with selling or renting and, if desired, take care of the necessary steps so you can enjoy this new phase of your life without worry.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

Photo: © Wordliner/Image created with OpenAI's ChatGPT

UMZ_EIG_8