Holiday home in the Fichtelgebirgefor enjoyment and investment

Why the Fichtelgebirge?

• Year-round destination: hiking, mountain biking, climbing and lakes in summer; downhill skiing on the Ochsenkopf and cross-country skiing in winter.
• Health tourism: spa towns such as Bad Alexandersbad and the thermal spa in Weißenstadt.
• Accessibility: via the A9 and A93, around 1.5 hours from Nuremberg and just over 2 hours from Leipzig, Dresden and Prague.
• Price level: holiday houses and flats often cost a fraction of comparable properties in the Allgäu or on the Baltic coast.

Popular locations

• Bischofsgrün – at the foot of the Ochsenkopf, a state-recognised climatic health resort
• Fichtelberg and Warmensteinach – winter sports, Lake Fichtelsee, hiking
• Weißenstadt – on the lake, with a thermal spa and spa gardens
• Bad Berneck – Kneipp spa in the Ölschnitz valley
• Tröstau, Nagel, Wunsiedel – quiet locations with good infrastructure

You will find local market information on pages such as Estate agent in Bischofsgrün, Fichtelberg and Weißenstadt.

What makes a holiday property successful

1. Location: close to a ski lift, cross-country trail, lake or hiking paths; a beautiful view.
2. Amenities: sauna, fireplace, a good kitchen, fast internet, charging points for electric cars.
3. Target group: families, couples, active holidaymakers or dog owners – the amenities should match.
4. Marketing: professional photos, booking platforms, your own website, good reviews.
5. On-site support: cleaning, key handover, caretaker – without reliable partners, holiday letting from a distance does not work.

Profitability

With 120 nights booked and a nightly rate of €95, a holiday flat generates around €11,400 of gross revenue a year. Cleaning, booking platform commissions, utilities, reserves and, where applicable, a management fee are deducted from this. Holiday properties are more labour-intensive than long-term letting, but offer personal use and – in good locations – higher income.

Law and tax

• Planning law: holiday letting may not be permitted in purely residential areas; check the development plan (Bebauungsplan).
• Declaration of division (Teilungserklärung): holiday letting may be excluded in owners' associations.
• Second-home tax (Zweitwohnungsteuer): some municipalities levy it on second homes used by their owners.
• Spa tax / tourism levy (Kurbeitrag/Fremdenverkehrsbeitrag): common in spa towns.
• Income tax: if the property is let exclusively, costs and depreciation (AfA) are fully deductible. With personal use, costs are apportioned, and the tax office may examine whether there is an intention to make a profit.
• VAT: short-term letting is subject to VAT; the small business rule (Kleinunternehmerregelung) can help.

The full calculation: holiday flat in Bischofsgrün

A 60 m² holiday flat for four people, purchase price €140,000, fully furnished, let via booking platforms and its own website.

At 150 nights and €105 per night, the surplus rises to around €7,300, or just under 5%. The difference shows how strongly occupancy and price determine profitability – and that a holiday flat without active marketing quickly becomes a loss-making venture. If yield is your main goal, long-term letting is often the better choice; if you want to use the flat yourself, you get part of the return back in holiday days.

Holiday letting or long-term letting?

The year in the Fichtelgebirge

Winters with little snow have had a noticeable effect in recent years. Properties that are also attractive in summer and the off-season – with a sauna, fireplace, view, dog-friendliness or proximity to thermal spas and lakes – are therefore more resilient.

Tax details

• Intention to make a profit: with exclusive holiday letting, it is usually assumed if the number of letting days does not fall more than 25% below the usual letting period in the area. With partial personal use, the tax office often requires a surplus forecast over 30 years.
• VAT: short-term accommodation is subject to the reduced rate of 7%. Anyone whose turnover was below €25,000 in the previous year and stays below €100,000 in the current year can use the small business rule and charge no VAT – but then also forgoes the input VAT on the purchase and furnishings.
• Trade: a single holiday flat without hotel-like services is usually treated as asset management. With several units offering breakfast, daily cleaning or a reception, it may count as a commercial business.
• Depreciation (AfA): the building and furnishings are depreciated, the furnishings over their shorter useful life. See Depreciation on property.

Obligations as a host

1. Registration forms: under the Federal Registration Act (Bundesmeldegesetz), guests must fill in a registration form, which is kept for one year.
2. Spa tax: in spa and recreational resorts, you collect it from guests and pay it to the municipality.
3. Smoke detectors and fire protection: smoke detectors are mandatory in Bavaria; above a certain number of beds, additional requirements apply.
4. Insurance: a standard buildings insurance policy does not always cover commercial letting – check this explicitly.
5. Change of use: if a flat previously used as a permanent home becomes a holiday flat, planning permission may be required. Ask the building authority.

Checklist before buying

• Is holiday letting permitted under the development plan and the declaration of division?
• Does the municipality levy a second-home tax or a tourism levy?
• What occupancy do comparable properties in the same location achieve (look at the calendars on booking platforms)?
• Are there reliable local partners for cleaning and key handover?
• How good is the internet connection and the mobile reception?
• How high are heating costs in a winter with 120 heating days at an altitude of 700 metres?
• Is the property also suitable for long-term letting or as a later retirement home – as a Plan B?

If you are buying from abroad, also note the advice for international buyers. Other places in the region: Bad Alexandersbad, Tröstau, Nagel and Wunsiedel.

Holiday flat or holiday house?

For newcomers, a holiday flat in a well-run complex is often the easier start. Anyone who wants to spend a lot of time in the region themselves in the long term will be happier with a house of their own.

Amenities guests expect

Holiday guests' expectations have risen in recent years. These points determine reviews and occupancy:

• fast Wi-Fi and a workspace for guests who work remotely
• a well-equipped kitchen with a dishwasher and coffee machine
• comfortable beds with high-quality bed linen
• a sauna or fireplace for the cold season
• a parking space, ideally with charging for electric cars
• a ski room or storage room for bicycles
• clear information on how to get there, excursions and shopping

Investing in these points often pays off faster than an expensive renovation, because they directly influence reviews and repeat bookings.

The holiday property as a later retirement home

Many buyers plan a holiday property in the Fichtelgebirge from the outset as a future home. Then criteria other than lettability matter: access to doctors and shops, step-free living, winter road clearing and a heating system that is affordable in continuous use. Towns such as Wunsiedel, Bad Alexandersbad, Weißenstadt or Bischofsgrün combine relaxation with good basic services. Information on the region under Living in Oberfranken, and on low-barrier properties under Barrier-free living.