Authored by the expert who managed and guided the team behind the Germany Property Pack
Everything you need to know before buying real estate is included in our Germany Property Pack
Yes, foreigners can absolutely buy property in Germany without being citizens, enjoying the same ownership rights as German nationals.
Germany's property market is fully open to international buyers, with no nationality-based restrictions for purchasing residential or commercial real estate. Whether you're from the EU, North America, Asia, or anywhere else in the world, you can own both land and buildings outright, though the financing and legal processes may require careful navigation for non-residents.
If you want to go deeper, you can check our pack of documents related to the real estate market in Germany, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Germany without citizenship, with no nationality restrictions and full ownership rights including land.
The main differences for non-citizens involve stricter mortgage requirements and higher transaction costs, typically ranging from 8-15% of the purchase price.
| Aspect | Requirements for Non-Citizens | Key Details |
|---|---|---|
| Citizenship Required | No | All nationalities can buy property |
| Visa/Residency | Not required for purchase | Can buy while living abroad |
| Ownership Type | Full freehold available | Own both land and buildings |
| Physical Presence | Not mandatory | Can complete remotely via notary |
| Mortgage Access | Available but stricter | 20-40% down payment typically required |
| Total Costs | 8-15% of purchase price | Includes taxes, notary, and agent fees |
| Best Cities for Investment | Berlin, Munich, Frankfurt | Strong rental yields and capital growth |
Can foreigners actually buy property in Germany without having German citizenship?
Yes, foreigners can buy property in Germany without German citizenship, with no legal restrictions based on nationality.
Germany's property laws treat all buyers equally, whether they're German citizens, EU nationals, or citizens from anywhere else in the world. This means you can purchase residential apartments, houses, commercial buildings, and even land with the same legal rights as a German citizen.
The German government doesn't impose ownership quotas, special permits, or nationality-based restrictions on property purchases. You'll have full ownership rights, including the ability to rent out the property, renovate it, or sell it whenever you choose.
Property ownership doesn't grant you residency rights or a path to German citizenship, but it's completely separate from immigration status. Many foreign investors own German real estate while living in their home countries.
It's something we develop in our Germany property pack.
Are there any restrictions or differences for non-EU citizens compared to EU citizens when buying property in Germany?
For standard residential and commercial property purchases, there are virtually no differences between EU and non-EU citizens in Germany.
Both EU and non-EU citizens follow the same purchase process, pay the same taxes and fees, and enjoy identical ownership rights. The notary requirements, registration procedures, and legal protections are uniform for all foreign buyers.
However, non-EU citizens may face slightly different requirements when purchasing agricultural land or properties in sensitive areas near military installations or borders. These restrictions are rare and typically don't affect standard residential or commercial real estate transactions.
Some specific reciprocity agreements may apply depending on your country of origin, but these mainly affect agricultural purchases rather than urban residential properties. For example, citizens from countries that restrict German property ownership might face similar limitations, though this is uncommon.
The most practical difference appears in financing, where non-EU citizens might face slightly stricter mortgage requirements from some lenders, though this varies by bank rather than being a legal requirement.
Do you need a visa or residency permit to purchase real estate in Germany if you're not a citizen?
No, you don't need a visa or residency permit to purchase real estate in Germany as a foreign citizen.
You can buy property while living abroad and complete the entire transaction remotely through legal representatives and notaries. Tourist visas are sufficient if you choose to visit Germany during the purchase process.
Property ownership is completely separate from immigration status in Germany. Buying real estate doesn't grant you any residency rights, and you can't use property ownership to obtain a visa or residence permit.
If you plan to live in Germany for more than 90 days per year, you'll need to apply for the appropriate visa or residence permit through normal immigration channels, regardless of property ownership.
Many foreign investors successfully purchase and manage German real estate while maintaining their primary residence in other countries, visiting only occasionally for property management or vacation purposes.
Can you own land or just buildings as a non-citizen, and are there any areas off-limits to foreigners?
Foreigners can own both land and buildings in Germany with full freehold ownership rights.
Most German properties are sold as "Eigentum" (freehold), meaning you own both the building and the land underneath it outright. This gives you complete control over the property, including the right to modify, develop, or demolish structures (subject to local planning permissions).
Leasehold ownership ("Erbbaurecht") exists but is less common, typically involving long-term land use rights of 50-99 years. Even with leasehold, you can own buildings while leasing the land.
Areas off-limits to foreigners are extremely limited and rarely affect typical property buyers. These restrictions mainly apply to agricultural land in certain regions, properties immediately adjacent to military installations, or land near sensitive border areas.
For residential and commercial properties in cities and towns, there are no geographic restrictions for foreign buyers anywhere in Germany.
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Is it necessary to be physically present in Germany to complete the property purchase process?
Physical presence is not strictly necessary to complete a property purchase in Germany.
The entire transaction can be completed remotely using a power of attorney and working with a German notary who handles the legal requirements. Many foreign buyers successfully purchase properties without ever setting foot in Germany during the transaction.
However, some practical steps become easier with physical presence, such as viewing properties in person, opening German bank accounts for easier fund transfers, or meeting with mortgage lenders face-to-face.
If you choose to be present, you'll need to attend the notary appointment where the purchase contract is signed and witnessed. If you can't attend, a legally appointed representative with power of attorney can sign on your behalf.
Remote purchases work best when you have reliable local representation, including a real estate agent, notary, and possibly a lawyer who can guide you through the process and ensure all legal requirements are met properly.
What documents are required and what's the step-by-step process to buy property as a non-citizen?
The property purchase process in Germany follows a standardized procedure with specific documentation requirements for foreign buyers.
Required documents include:
- Valid passport or national ID card
- Proof of income and financial stability (recent pay stubs, tax returns)
- Bank statements from the past 3-6 months
- Mortgage pre-approval letter (if financing the purchase)
- German tax identification number (obtainable from local tax office)
Step-by-step purchase process:
- Secure financing: Get pre-approved for a mortgage if needed, or verify liquid funds for cash purchase
- Property search: Use licensed real estate agents, online platforms, or property auctions to find suitable properties
- Make an offer: Submit written offers through your agent, often including a small reservation deposit
- Legal review: Have the purchase contract (Kaufvertrag) reviewed by a notary and potentially a lawyer
- Notary appointment: Sign the purchase contract in the presence of a German notary, who ensures legal compliance
- Pay closing costs: Transfer funds for property transfer tax, notary fees, and agent commissions (8-15% of purchase price)
- Fund transfer: Pay the full purchase price to the seller through the notary's escrow account
- Property registration: The notary registers your ownership in the Grundbuch (land registry)
- Key handover: Receive property keys and take physical possession
The entire process typically takes 8-12 weeks from contract signing to completion, with the notary ensuring all legal requirements are properly fulfilled.
Do you need to hire a lawyer or notary, and what roles do they play in the transaction for foreigners?
A notary is mandatory for all property transactions in Germany, while a lawyer is optional but recommended for complex cases.
German notaries are legally required to be present for property transactions and serve as neutral parties ensuring both buyer and seller interests are protected. They draft the purchase contract, verify all parties' identities, explain legal obligations, and register the property transfer.
The notary's responsibilities include conducting title searches, ensuring the property is free of undisclosed liens, calculating and collecting transfer taxes, and registering your ownership in the official land registry (Grundbuch).
Lawyers aren't mandatory but provide valuable services for foreign buyers, including contract review before signing, negotiating terms and conditions, advising on tax implications, and providing translation services for complex legal documents.
For straightforward residential purchases, the notary's services are usually sufficient. However, commercial properties, properties with complex legal histories, or transactions involving corporate entities often benefit from additional legal representation.
It's something we develop in our Germany property pack.
Are mortgages actually available to non-citizens, and if so, what are the typical interest rates, conditions, and best practices to qualify?
| Mortgage Aspect | German Residents | Non-Resident Foreigners |
|---|---|---|
| Down Payment Required | 10-20% | 20-40% |
| Interest Rates (2025) | 1.5-3.0% | 2.0-3.5% |
| Maximum Loan-to-Value | 80-90% | 60-80% |
| Income Documentation | Standard employment proof | Extensive income verification required |
| Processing Time | 4-6 weeks | 6-10 weeks |
| Credit History Required | German Schufa score | International credit reports accepted |
| Employment Requirements | Stable German employment | Proven international income stability |
Non-residents face stricter qualification requirements including higher down payments, more extensive income documentation, and often slightly higher interest rates than German residents.
Best practices to qualify for a mortgage as a non-citizen:
- Maintain stable employment and income for at least 2 years before applying
- Prepare comprehensive financial documentation including tax returns, bank statements, and employment contracts
- Consider working with mortgage brokers who specialize in foreign buyer financing
- Shop around with multiple lenders, as requirements vary significantly between banks
- Consider international banks with German operations that understand cross-border financing
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Germany versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the full range of taxes, fees, and hidden costs for foreigners buying and then reselling property in Germany?
| Cost Category | Percentage of Purchase Price | Details |
|---|---|---|
| Property Transfer Tax | 3.5% - 6.5% | Varies by federal state (Land) |
| Notary Fees | 1.0% - 1.5% | Based on property value |
| Land Registry Fees | 0.5% | For official ownership registration |
| Real Estate Agent | 3.5% - 7.0% | Shared between buyer and seller |
| Legal/Advisory Fees | 0.5% - 1.0% | Optional but recommended for foreigners |
| Property Valuation | €500 - €2,000 | Required for mortgage approval |
| Total Buying Costs | 8% - 15% | Can reach 20% in expensive states |
Annual ownership costs include:
- Property tax (Grundsteuer): 0.2% - 1.0% of assessed value annually
- Building insurance: €200 - €800 per year depending on property size
- Maintenance reserves: 1-2% of property value annually
- Property management: 3-8% of rental income if renting out
Selling costs and taxes:
- Capital gains tax: 0% if held over 10 years, otherwise taxed as income
- Real estate agent fees: 3-7% of sale price
- Notary fees for sale: 1-1.5% of sale price
- Early mortgage repayment penalties: varies by lender
Foreign buyers should budget 10-15% above the purchase price for total acquisition costs, with annual holding costs typically ranging from 2-4% of property value.
Which cities and regions in Germany currently have the best combination of livability, rental yields, tourism demand, and capital growth potential for foreign buyers?
As of June 2025, several German cities offer exceptional opportunities for foreign property investors seeking strong returns and lifestyle benefits.
Top-tier investment cities:
- Berlin: Strong rental market with 3-5% yields, vibrant cultural scene, and continued gentrification driving capital growth
- Munich: Premium market with 2-4% yields but exceptional capital appreciation, Germany's economic powerhouse
- Frankfurt: Financial center offering 4-6% rental yields, strong international demand, and steady property value growth
- Hamburg: Port city with 3-5% yields, excellent quality of life, and emerging technology sector growth
- DĂĽsseldorf: International business hub with 3-4% yields, large expat community, and strong rental demand
Emerging opportunity markets:
- Leipzig: Eastern Germany's rising star with 5-7% rental yields and significant capital appreciation potential
- Dresden: Cultural center offering 4-6% yields with lower entry costs and tourism growth
- Cologne: Media and technology hub with 3-5% yields and strong student rental market
- Stuttgart: Automotive industry center with 3-4% yields and stable employment market
- Nuremberg: Bavarian city offering 4-5% yields with good work-life balance and affordable prices
Berlin and Frankfurt currently offer the best balance of lifestyle, rental income, and growth potential for most foreign investors, while Munich provides premium capital appreciation despite lower yields.
It's something we develop in our Germany property pack.
How do property prices compare across Germany—what's the average cost per square meter in key cities and regions right now?
| City/Region | Apartment Price (€/m²) | House Price (€/m²) |
|---|---|---|
| Munich | €10,000 - €15,000 | €8,000 - €12,000 |
| Frankfurt | €5,500 - €8,000 | €4,500 - €6,500 |
| Berlin | €4,500 - €7,500 | €4,000 - €6,000 |
| Hamburg | €4,000 - €6,500 | €3,500 - €5,500 |
| Düsseldorf | €4,000 - €6,000 | €3,500 - €5,000 |
| Stuttgart | €4,200 - €6,000 | €3,800 - €5,500 |
| Cologne | €3,500 - €5,500 | €3,000 - €4,500 |
| Leipzig | €2,000 - €3,500 | €1,800 - €2,800 |
| Dresden | €2,200 - €3,800 | €2,000 - €3,200 |
| National Average | €3,400 | €2,800 |
Munich remains Germany's most expensive property market, with prime central locations reaching €20,000+ per square meter for luxury apartments.
Eastern German cities like Leipzig and Dresden offer the best value propositions, with prices 60-70% lower than Munich while showing strong growth potential.
Regional variations are significant, with rural areas and smaller towns offering properties from €1,000-2,000 per square meter, making them attractive for buy-to-let investors targeting local rental markets.
As we reach mid-2025, property prices in major German cities have stabilized after recent interest rate increases, creating favorable buying conditions for well-prepared foreign investors.
What are the most common mistakes foreign buyers make when purchasing property in Germany, and how can you avoid them?
Foreign buyers frequently make costly errors that can be easily avoided with proper preparation and local knowledge.
Most common mistakes and prevention strategies:
- Underestimating total costs: Budget 15-20% above purchase price for all fees, taxes, and unexpected expenses
- Skipping professional inspections: Always hire qualified building surveyors to identify structural issues, energy efficiency problems, or renovation needs
- Ignoring local zoning laws: Research building restrictions, renovation permissions, and rental regulations before buying
- Overpaying due to limited market knowledge: Study comparable sales, neighborhood trends, and work with experienced local agents
- Inadequate legal representation: Use qualified notaries and consider hiring lawyers for complex transactions
- Poor financing planning: Secure mortgage pre-approval and understand all loan conditions before making offers
- Rushing the due diligence process: Take time to verify property documents, ownership history, and outstanding debts
- Misunderstanding rental regulations: Learn tenant protection laws and rental market dynamics if planning to rent out property
Best practices for successful property purchases:
- Work exclusively with licensed, English-speaking real estate professionals
- Visit properties multiple times at different times of day and week
- Research neighborhood infrastructure, schools, transport links, and future development plans
- Understand German property management requirements if buying for investment
- Maintain emergency funds for unexpected repairs and maintenance costs
Success in German real estate requires patience, thorough research, and professional guidance rather than rushing into purchases based on limited information.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buying property in Germany as a foreign citizen is straightforward and legally protected, with no nationality-based restrictions limiting your ownership rights.
The key to success lies in proper preparation, understanding the total costs involved (typically 8-15% above purchase price), and working with qualified local professionals to navigate the legal and financial requirements effectively.
Sources
- InvestRopa - Germany Real Estate for Foreigners
- Probashi Realty - Insider Tips Buying Property Germany
- Multilaw - Real Estate Guide Germany
- Lawyers Germany - Purchase Property Germany
- Finance for Expats - Why You Need a Notary
- Finance for Expats - Legal Requirements Germany
- InvestRopa - Germany Property Purchase Agreement
- Hypofriend - Buying German Property
- Kredium - Mortgage Germany Foreigner
- PTI Returns - Property Tax Germany