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The perks of private health insurance for expats in Germany

Public healthcare in Germany is not as catch-all as one might hope. Find out why going private could benefit both your health and your bank account.

Published: 7 November 2019 05:00 CET
The perks of private health insurance for expats in Germany
Photo: Depositphotos

Insurance providers in Germany’s public healthcare system are required by law to provide a certain coverage for the entire population. While this includes a whole host of essential treatments, you might be surprised to discover that some medical conditions are, in fact, not covered. Additionally, as a consequence of recent hospital reforms, medical cost inflation, and Germany’s ageing population, the cost of public healthcare in Germany is rising every year.

To avoid paying more and more to an already strained public healthcare system, many residents of Germany are starting to look elsewhere to insure their health. Opting to take out private health insurance from a German insurance company – such as ottonova’s health insurance for expats earning €60,750+ a year – might be the best way to manage your health while in Germany.

Find out if you qualify for private health insurance here

Lower costs and priority status

Although dependent on your particular health situation, the cost of a private health insurance can actually be lower than what you might pay for public health insurance. For example, if you have high medication costs, public insurances only cover a small amount of these, whereas private healthcare providers will reimburse you much more generously. In general, your monthly premium for full medical insurance is based on the level of benefits chosen, as well as on your entry age and any pre-existing medical conditions, meaning your contribution is customized to your medical needs. A major portion of private medical insurance premiums has also been tax deductible from German income taxes since 2010.


Photo: Depositphotos

Another benefit of private insurance, which may end up being a real lifesaver, is the priority status assigned to private healthcare customers. This status comes with a range of perks, including shorter waiting time to see a physician (especially specialists) and the option of being consulted by a doctor who speaks your native language. The main advantage, however, is that with a private health insurance you have access to all doctors across the entire of Germany, public and private alike. In other words, your chances of finding the best possible care are a lot higher with a private plan.

Better treatment and materials

If you have a comprehensive private plan, you will be thoroughly examined by way of a full battery of tests whenever you need it. This kind of service simply isn’t offered in the public healthcare system.

Earning over €60,750 in Germany? Get private health insurance with ottonova

If you have or develop a chronic illness or some other serious medical condition that requires regular check-ups and tests, private health care plans generally give you many more treatment options than are available through public health insurance. If you have a stenosis, for example, and need to get a stent (the metal stick that keeps your coronary vessels open to prevent heart attack), a private healthcare plan will ensure that you get a stent of higher quality than the ones available with public health insurance. This is because all medical services provided by the public health insurance are required by Germany’s social insurance code (Sozialgesetzbuch, SGB) to be as cost-effective as possible, whereas private providers do not have this restriction. Instead, they are obliged to meet the terms of the contract and this often means a higher standard of medicines and materials. Since higher quality stents last up to 15 years longer than lower quality stents, in this case, a private healthcare plan may well help to extend your life expectancy.


Photo: Depositphotos

Another benefit of private health insurance is that, unlike public insurance, it covers preventative health checkups for illnesses such as colon cancer. Most public health insurances only cover this particular illness for men aged over 50 and women aged over 55. Similarly, with a private healthcare insurance, you’re covered for breast cancer prevention care via ultrasonic scanning. Finally, travel vaccinations, which are not necessarily covered by public insurance, are often covered by a private insurance. This said, keep in mind that not all private health insurance companies have good coverage (some don’t even offer checkups at all) – and that there are black sheep out there!

Better coverage for dental and eye health costs

Eye health and dental health are only partially covered at all by Germany’s public healthcare system. In the private system, however, most insurance companies, including ottonova, offer compensation for both of these potentially costly areas. Coverage generally includes both glasses and contact lenses, which the public system offers no compensation for.

In terms of dental care, many private insurance companies offer annual dental cleanings as well as coverage for, among other things, gum treatments and cavity and root canal treatment. This is in stark contrast to a public insurance, which only covers the bare minimum of dental treatments. While those publicly insured can complement their insurance with so-called “top-up insurances” to cover dental health costs, opting for a private insurance can often be a cheaper route.

This article was produced by The Local Creative Studio and sponsored by ottonova.

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PROPERTY

Who pays broker’s fees on property in Germany – and how much do they cost?

One of the major hidden costs of buying and selling property in Germany is the estate agent's commission, or broker's fee. We look at some of the unusual rules around it - and how much you can expect to pay.

Published: 17 September 2024 16:25 CEST
Who pays broker's fees on property in Germany - and how much do they cost?

There are many areas of life in which things in Germany function just that little bit differently – and buying a house is no exception.

Though the buoyant property market in the Bundesrepublik makes it an attractive place to buy, anyone looking to get their foot on the housing ladder should consider the hidden fees they might incur.

Beyond interest rates, taxes and fees for notaries and translators, one major outlay is the estate agent’s commission, which can sometimes stretch to thousands of euros.

Here’s what to know about these hefty fees and how you might be able to lower them. 

Who pays commission on property transactions in Germany?

If you come from another European country or somewhere like the United States, you may be used to a system in which the seller pays the broker’s fee. This intuitively makes sense because the estate agent is there to market the property, liaise with buyers and ultimately get the best price for the seller – so it makes sense that the seller should pay for these services.

Until recently, however, it was the buyer who was responsible for paying the entirety of the estate agent’s commission in Germany. That meant that these fees – which could be as high as seven percent of the purchase cost – were added to the mountain of extra costs buyers had to contend with, from notary fees to land transfer tax.

READ ALSO: The hidden costs of buying a house in Germany

Luckily for buyers (but less so for sellers), this was changed under a law that came into force at the end of 2020. Since then, costs are generally split 50/50 between buyers and sellers.

However, there are some details that are important to note here. If the seller commissions the estate agent to help them sell their home, they are technically liable for the costs but must pay a minimum of 50 percent. 

If the buyer commissions the estate agent to find them a home, the same rules apply the other way around: the buyer is liable for the costs but can obtain a maximum of 50 percent from the seller.

In each case, the side that commissioned the broker must prove they have paid their share before the other side is liable to pay theirs. 

How much do estate agents’ fees cost in Germany?

Commission on property sales varies from state to state but is generally set at between 5 and 7 percent of the purchase price.

According to online portal ImmobilienScout24, these were the standard rates that applied in each of the federal states in 2024, with the number in brackets representing a 50 percent share of the costs:

Baden-Württemberg: 7.14 percent (3.57 percent)

Bavaria: 7.14 percent (3.57 percent)

Berlin: 7.14 percent (3.57 percent)

Brandenburg: 7.14 percent (3.57 percent)

Bremen: 5.95 percent (2.97 percent)

Hamburg: 6.25 percent (3.12 percent)

Hesse: 5.95 percent (2.97 percent)

Lower Saxony: 4.76 – 5,95 percent or 7.14 percent, depending on the region. (2.38 – 3.57 percent)

Mecklenburg Western-Pomerania: 5.95 percent (2.97 percent)

North Rhine-Westphalia: 7.14 percent (3.57 percent)

Rhineland-Palatinate: 7.14 percent (3.57 percent)

Saarland: 7.14 percent (3.57 percent)

Saxony: 7.14 percent (3.57 percent)

Saxony-Anhalt: 7.14 percent (3.57 percent)

Schleswig-Holstein: 7.14 percent (3.57 percent)

Thuringia: 7.14 percent (3.57 percent)

If it’s hard to gauge how much this means in real terms, we can take the example of two properties: a €200,000 apartment and a €500,000 family home.

In the state of Hesse, a buyer splitting the broker’s fee equally with the seller would pay €5,940 to buy the €200,000 apartment and €14,850 to buy the €500,000 house.

In pricier Berlin, meanwhile, the same buyer would pay €7,140 on the €200,000 apartment and €17,850 on the €500,000 house.

READ ALSO: Is autumn 2024 the right time to buy a property in Germany?

Here’s where it gets more complicated, however: under German law, you are technically free to negotiate the commission with your estate agent.

That means that, especially in areas with stiff competition, you may be able to secure a better deal. 

Do I always have to pay commission in Germany? 

Not always. In fact, as a seller, you’re perfectly free to sell your property privately without enlisting the help of a real estate agent.

The benefit of this, of course, is that you can potentially save thousands of euros in fees, both for yourself and any prospective buyer. 

On the flip side, though, you will need to take the entire job of the estate agent on yourself, from marketing the property to liaising with potential buyers and finally closing the deal.

Real estate agent Germany

A real estate agent talks to prospective tenants at an apartment viewing. Photo: picture alliance/dpa | Tobias Hase

There can also be some upfront costs involved in commissioning things like floor plans and professional photography, as well as the time you’ll need to invest in learning all the procedures and preparing relevant documents for notary – to name just a few examples.

Ultimately, though, it’s up to you to decide whether the expense of working with a professional broker is worth it in the end. 

As a buyer, there are also some situations where you’ll see the words ‘provisionsfrei’ – or commission-free – written in a property listing.

This is fairly common in new-build properties, where the developer may sell the homes directly to interested buyers. More rarely, an existing property may be listed without commission, making it a more attractive proposition.

In both cases, it’s possible that commission has been built into the purchase price, so you may not necessarily be getting a better deal.

Another case where you’re likely to be able to avoid commission as a buyer are so-called Kapitalanlagen – or buy-to-let properties. 

READ ALSO: Should you think about purchasing a buy-to-let property in Germany?

These tenanted properties are designed to be bought as investments: buyers can enjoy additional rental income over time and, ideally, will also make money when they come to sell the property several years later.

For this reason, costs are generally kept slightly lower for the buyer by eschewing the standard broker’s commission. 

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