It's not like this is a hard border. It's completely feasible to live outside its limits. Sure, that's not technically Berlin but for all purposes regarding the housing market it is.
Not quite. If I understand right (as a recent-ish migrant to Germany, I expect to have half an understanding at best), different states have laws and slightly different taxes. Not as much so as American states, but perhaps more like Newark vs. NYC than Cupertino vs. Sunnyvale.
The difference in taxes is zero or negligible for almost all persons (income tax, VAT, etc. is exactly the same – dog tax probably is the highest difference). Corporations pay less taxes outside city limits.
The most relevant law I can think of is that if you live outside the city limits you might not be able to send your kids to a school in Berlin.
Okay, but suppose I got a job in Berlin - why would I have to live in Berlin proper as opposed to some place out side of Berlin? What is stopping me from getting a place just outside of the Berlin limits?
