Dentists: setting up a practice costs 470.000 euro


According to an analysis by apobank and the zentralinstitut fur die kassenarztliche versorgung (ZI), setting up a dental practice is particularly expensive for dentists. While family physicians need an average of 104.000 euros, it is more than four times that amount in the case of dentists.

According to the analysis, the most favorable form is the purchase and transfer of a family doctor's individual practice into a professional practice association (BAG) at 105.000 euros. For general practitioners, the most expensive option is to set up a joint practice with other partners, which costs an average of 129,000 euros.000 euros.

This is how deep dentists have to dig into their pockets

Dentists can only smile mildly about this. You will have to put down by far the highest amounts to start a solo practice. Here, practice investments have increased 31 percent since 2014 and currently stand at 470.000 euros. The most common way for dentists to set up a practice is to take over an individual practice. In 2016, 59 percent of dental startups went into business for themselves this way. Although the prices for taking over a practice are not as high as for setting up a new one, they have risen by an average of seven percent: since 2014 from 265.000 euro to 284.000 euros in 2016.

Why starting a practice is so expensive?

Especially, if you take over a well running dental practice in an attractive environment, you have to expect high investments. In fact, the purchase price also includes the sentimental value, which u.A. Depends on the practice's patient base, image and location. Plus the material value from furnishings and medical equipment in practice. On top of that, if you take over a practice, there are costs for modernization, furnishings, or medical technology equipment.

Types of financing when starting a practice

A variety of financing options are available to dentists who want to establish a practice.

  • For example, the interest payment loan (bullet loan). The loan does not have to be repaid in full until the end of the term. The burden during the term is limited to the debit interest. Claims from endowment life insurance, private pension insurance, building society contracts or investment funds are assigned as repayment substitutes. These are saved separately and used to repay the loan at the end of the term.
  • Repayment loans: with amortizing loans, the repayment remains constant over the life of the loan – with the result that financial freedom increases over time as the debit interest calculated on the remaining term decreases over time.
  • Annuity loans are suitable for financing where you want to achieve a constant installment payment.
  • Working capital loan: the working capital loan is an overdraft facility that is used, among other things, to pre-finance costs in the start-up phase after the practice is taken over.

In addition to loans from their principal bank, it is advisable to make use of public subsidy program loans – such as those offered by the reconstruction loan corporation (kfw).

Tap into financial aid programs

In addition to the loan granted by the house bank, it is advisable for dentists to additionally inquire about public subsidy program loans – such as those offered by the reconstruction loan corporation (kfw). Interested dentists can obtain information on suitable subsidy programs from their local bank, which must also submit the appropriate application if required.