Holiday home in the Fichtelgebirgefor enjoyment and investment

Between the Schneeberg, the Ochsenkopf and Lake Weißenstadt lies one of the most varied holiday regions in northern Bavaria. For buyers looking for a retreat of their own, or viewing a holiday property as an investment, the Fichtelgebirge offers something that has become rare in the Alps and on the coast: affordable prices.

Half-timbered houses in Little Venice, Bamberg, right on the water – Holiday home in the Fichtelgebirge

This guide in one minute

The key points of this guide as a short video. All details and worked examples are in the text below.

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Inhalt dieser Seite (14)
  1. Why the Fichtelgebirge?
  2. Popular locations
  3. What makes a holiday property successful
  4. Profitability
  5. Law and tax
  6. The full calculation: holiday flat in Bischofsgrün
  7. Holiday letting or long-term letting?
  8. The year in the Fichtelgebirge
  9. Tax details
  10. Obligations as a host
  11. Checklist before buying
  12. Holiday flat or holiday house?
  13. Amenities guests expect
  14. The holiday property as a later retirement home

Key points at a glance

  • The Fichtelgebirge attracts tourists all year round: hiking and cycling in summer, cross-country and downhill skiing in winter, plus thermal spas and lakes.
  • Holiday properties here are considerably cheaper than in the Alps or on the coast.
  • Realistic occupancy is 90 to 160 nights a year – heavily dependent on location, amenities and marketing.
  • Municipalities may levy a second-home tax; development plans and declarations of division can restrict holiday letting.
  • For tax purposes, a holiday flat that is let exclusively is treated like an investment property.

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.
  • 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.

Itemper year
Occupancy 120 nights × €95€11,400
Final cleaning (40 stays, paid by the guest, pass-through item)± €0
− Booking platform commissions (approx. 15% on 70% of bookings)− €1,200
− On-site support, key handover, laundry− €1,800
− Electricity, heating, water, internet, broadcasting fee− €2,000
− Service charge (Hausgeld; not recoverable, as there are no tenants)− €1,800
− Maintenance, replacement of furnishings− €1,000
− Insurance, spa tax administration, software− €400
= Surplus before financing and tax€3,200
Yield on purchase price plus purchase costs (approx. €152,000)2.1%

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?

Holiday lettingLong-term lettingPersonal use as a second home
Revenuehigh, fluctuatinglower, stablenone
Efforthigh (guests, cleaning, reviews)lowlow
Personal usepossible on free daysnot possibleat any time
Taxincome tax and VAT, intention to make a profit must be shownincome taxsecond-home tax where applicable
Riskoccupancy, competition, seasonrent defaultcosts without income

The year in the Fichtelgebirge

PeriodDemandGuests
January–Marchhigh when there is snowdownhill and cross-country skiers, families in the winter holidays
April–Maylow to mediumhikers, spa guests
June–Septemberhighfamilies, hikers, cyclists, lake visitors
Octobermediumautumn hikers, couples
Novemberlowa few short-stay and business travellers
Decemberhigh over Christmas and New Yearfamilies, groups

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?

Holiday flat in a complexYour own holiday house
Purchase pricelower, from around €60,000higher, usually from €120,000
Maintenanceshared via service charge and reserveentirely your own
Rulesdeclaration of division may restrict lettingdevelopment plan and municipality
Guestscouples, small familieslarger families, groups, dog owners
Income per nightlowerhigher, but more effort
Resalebroad market, including long-term lettingsmaller pool of buyers

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.

Frequently asked questions

Can I also let a holiday flat to contract workers?

Yes, in many places letting to project staff and fitters is a good complement to tourist demand, especially in the off-season. Make sure there are clear rules on occupancy, cleaning and parking, and check whether the declaration of division or building law permits this use.

Is there a second-home tax in Fichtelgebirge towns?

Some Bavarian municipalities levy a second-home tax, others do not. Ask the municipality before buying – depending on its by-laws, the tax can amount to a noticeable sum each year.

How many days a year may I use my holiday flat myself?

The law does not limit personal use. For tax purposes, however, it matters: the more you use it yourself, the more closely the tax office examines the intention to make a profit, and costs are only taken into account proportionally for the letting period. Keep precise records of personal use and letting.

Is a professional holiday letting agency worthwhile?

Often yes for owners who live far away. Agencies take care of marketing, bookings, guest communication and cleaning, but usually charge 20 to 30% of revenue for this. Whether it pays off depends on occupancy and price.

Do I have to register a business for a holiday flat?

For a single holiday flat without additional hotel-like services, usually not. If you offer breakfast or daily cleaning, or let several units with a reception, it may count as a business. If in doubt, clarify this with your tax adviser and the municipality.

How do I find guests for my holiday flat?

Through the major booking platforms, the host directories of the Fichtelgebirge Tourist Board and the municipalities, and your own website with direct booking. Good photos and quick replies to enquiries are crucial. Returning regular guests are in the long run the cheapest and most reliable group of guests.

How much does a holiday house in the Fichtelgebirge cost?

Depending on location, size and condition, from around €120,000 for a house in need of renovation to over €400,000 for modern properties in prime locations. Holiday flats are available from around €60,000.

Can I also let a holiday flat on a long-term basis?

Yes, if holiday letting does not pay for itself or you want less effort. Long-term letting brings less revenue, but stable income. More on holiday properties under Holiday properties.

Sources & further reading

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