Important changes

• Friedrich Merz has been Germany's new chancellor since May 6, 2025. He didn't get the majority vote in the first round, which happened for the first time since WWII. He gained a majority in the second round of votes. Those preparing for the German citizenship test should make a note of this.
• The new German government increases border security to control illegal immigration. [1]

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Your right to reduce rent in Germany

Not everyone is lucky enough to have a good landlord who responds promptly and fixes issues. Here are your rights as a tenant if something is wrong with your property and the landlord is not answering.

German law requires the landlord to maintain the property in the condition stipulated in the rental contract. If that's not the case, you (the tenant) can reduce the rent.

What is considered a defect in reducing rent?

Per Section 536 BGB, a rent reduction is possible if the property has a defect. However, the definition of a defect is subjective.

Per the law, a defect exists if the property's actual condition deviates negatively from the target condition agreed upon in the rental contract.

Common defects and percentage rent reduction

• Complete heating failure during the months between September and February: 100% rent reduction
• Health hazard due to mould infestation: 100%
• Pest control with baits and trace dust over two weeks: 80%
• Noise due to construction work in the attic of the house: 60%
• Impairment of use due to moisture in the walls: 50%
• High indoor temperature during summer (30°C during the day and 25°C at night): 20%

Many other defects are considered valid for a rent reduction. How much rent reduction you can claim varies from case to case.

How should you proceed if your property has a defect?

• Inform your landlord immediately in writing about the defect.
• Describe the defect as precisely as possible and attach pictures.
• Give the landlord a reasonable time to fix the issue.
• If the landlord doesn't fix the issue, you can take steps to reduce the rent.

Who can support you in such a situation?

• You can join a Tenants' Association and contact them for support. They can guide you and send a legal letter to the landlord on your behalf.
• You can hire a lawyer to learn your rights and how to proceed. The lawyer can send letters to the landlord and support you if the case goes to court.

If you have legal insurance, it covers the legal fees. If you're right about the rent reduction, you can claim legal fees from the landlord.

How much money must you invest to earn a 1k or 3k dividend per month?

The table above shows how much you must invest to earn 1000 or 3000 euros of monthly dividend after tax.

How is it calculated?

Suppose the dividend yield of your investment is 1.5% per annum. To recieve 12,000€ dividends annually, you must invest 800k€ (12,000 / 1.5%).

In this case, we didn't consider taxes.

Here is another way to understand it.

For every 1,000€ invested, you'll receive €15 (1.5% of 1000) in dividends annually.

The dividend amount reduces to 12€ after deducting capital gains tax. So, to recieve 12,000€ dividends after tax annually, you must invest.

(1000€ / 12€ net annual dividend) * 12000€ of desired net annual dividend = 1 million euros.

How can you start investing?

• Open a savings account* to start earning interest. This is a low-risk, low-return way of saving.
• Open a trading account and create an ETF savings plan. It is a high-risk, high-return way of saving/investing. You can open a free trading account with Finanzen.net Zero*, Smartbroker+*, or Scalable Capital*.

Latest News

• Germany's intelligence agency suspends the 'right-wing extremist' label for the AfD.
• Russia announced a 72-hour pause in fighting. The pause will last until midnight on Saturday.
• The US and the UK reached a trade deal that benefits both countries. The UK reduced tariffs on US goods from 5.1% to 1.8%, purchased $10 billion in Boeing planes, and established a secure pharmaceutical supply chain. On the other hand, the US reduced tariffs on UK cars from 27.5% to 10%, eliminated tariffs on UK steel and aluminum, and UK farmers gained access to US markets. [1, 2]
• U.S. Vice President JD Vance criticized Russia’s demands for ending the Ukraine war during a Munich Security Conference event in Washington. He said the demands were excessive and emphasized that Ukrainian and Russian officials must talk directly with one another to resolve the conflict. [1]

India-Pakistan rising tensions

• Pahalgam Terrorist Attack (April 22, 2025): Militants killed 27 people in Baisaran Valley, Jammu and Kashmir.
• India accused Pakistan of sponsoring the attack. Pakistan denied any involvement.
• Escalation and Military Actions: On May 7, India launched “Operation Sindoor,” missile strikes targeting alleged militant camps in Pakistan. Pakistan reported 31 deaths. Pakistan retaliated, claiming to have downed Indian jets. India reported 16 deaths.
• Diplomatic and Economic Measures: India suspended the Indus Waters Treaty, closed the Attari-Wagah border, canceled Pakistani visas, and expelled Pakistani diplomats. Pakistan suspended the Simla Agreement, closed its airspace to Indian aircraft, cut trade, and expelled Indian diplomats.
• International Response: The U.S., EU, China, Russia, and others urged restraint and dialogue to prevent escalation. The UN called for “maximum military restraint” to avoid a nuclear confrontation.

Sources: [1, 2]

Tensions are rising in different parts of the world. Stay alert and safe. We hope that the conflicts are resolved quickly, minimizing casualties.

Community Shoutouts! 📣

• We have now started creating more content in the form of infographics and videos. From next week, we'll start posting them on Facebook, Instagram, and LinkedIn. So, follow us on one of your favorite platforms and stay updated about life in Germany.

Whether it's a must-visit place, a life hack, or an inspiring story, we’d love to hear from you.

New and recently updated guides

• ​Rental property scams in Germany​
• ​How do you inspect a property before buying it?​
• ​Different types of insurance in Germany - Which do you need?​
• ​Renovation loan in Germany​

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