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
Germany does not restrict foreigners from buying residential property, but navigating the process involves understanding notarization rules, land registry systems, and state-by-state transfer taxes.
This guide walks you through what you can legally own, visa requirements, buying steps, financing options, and ongoing costs as a foreign buyer in Germany.
We update this blog post regularly to reflect current mortgage rates, tax rules, and regulatory changes in Germany's property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Germany.
Insights
- Germany's real estate transfer tax (Grunderwerbsteuer) varies from 3.5% to 6.5% depending on the federal state, meaning buyers in Bavaria pay nearly half what buyers in Brandenburg or Thuringia pay for the same property value.
- Unlike many countries, signing a purchase contract in Germany does not transfer ownership. You only truly own the property once your name is registered in the Grundbuch (land register), which can take weeks or months after signing.
- Since December 2020, German law requires sellers and buyers to split broker commissions equally on residential properties, ending the old practice where buyers often paid the full 6% to 7% agent fee alone.
- Foreign buyers without German residency typically need a 30% to 40% down payment to secure a mortgage in Germany, compared to 10% to 20% for residents with local income.
- As of early 2026, typical mortgage rates in Germany for owner-occupied homes sit around 3.6% to 4.2% APRC, with non-residents often paying an additional 0.2 to 0.7 percentage points.
- Buying property in Germany does not grant you residency or citizenship. Germany has no golden visa program tied to real estate investment, unlike Portugal or Spain.
- Erbbaurecht (heritable building right) is common enough in Germany that buyers should actively check whether they are buying the building and land, or just a long-term lease on the land owned by a church or municipality.
- Annual property tax (Grundsteuer) in Germany typically ranges from 250 to 700 euros for apartments and 400 to 1,500 euros for houses, but exact amounts depend heavily on municipal multiplier rates.
- If you rent out German property while living abroad, Germany taxes that rental income regardless of your residency. Non-resident landlords should budget 20% to 40% of net rental profit for German income tax.
What can I legally buy and truly own as a foreigner in Germany?
What property types can foreigners legally buy in Germany right now?
As of early 2026, foreigners can legally buy any type of residential property in Germany, including condominiums, single-family houses, semi-detached homes, terraced houses, and vacation apartments, with no nationality-based restrictions in place.
The key condition is not your nationality but your ability to complete the legal formalities: you must have a notarized purchase contract, prove your identity, and meet anti-money-laundering documentation requirements that banks and notaries enforce.
What changes in practice for foreign buyers is mainly the banking and paperwork side, such as proving funds, opening local accounts, and potentially getting a mortgage as a non-resident, rather than any legal barrier to ownership itself.
Germany's ownership rules are defined by civil law and land registry entry, meaning if a German citizen can buy a property, you generally can too, provided you follow the same notarization and registration process.
Finally, please note that our pack about the property market in Germany is specifically tailored to foreigners.
Can I own land in my own name in Germany right now?
Yes, foreigners can own land directly in their own name in Germany, with their name registered in the Grundbuch (land register) just like any German citizen.
When you buy a house in Germany, you typically own both the building and the land underneath it, and when you buy a condominium (Eigentumswohnung), you own your unit plus a co-ownership share of the land and common areas.
One important exception to watch for is Erbbaurecht (heritable building right), where you may own or hold the building long-term but the land remains owned by someone else, often a church, municipality, or foundation, so always check the listing and notary draft carefully.
By the way, we cover everything there is to know about the land buying process in Germany here.
As of 2026, what other key foreign-ownership rules or limits should I know in Germany?
As of early 2026, Germany does not impose foreign-ownership quotas, special permits, or nationality-based caps on residential property purchases, which sets it apart from countries like Switzerland or Thailand that have strict limits on foreign buyers.
There is no condominium foreign-ownership quota in Germany, meaning an entire building's apartments could theoretically be owned by foreigners without triggering any legal restriction.
However, when you buy a condo (Eigentumswohnung), you automatically join a community of owners (Wohnungseigentümergemeinschaft) governed by specific rules about maintenance, reserves, and voting, which can affect what you can do with your property in practice.
Germany has not introduced any new regulatory changes specifically targeting foreign ownership as of the first half of 2026, though buyers should always verify that vacation-use apartments or Erbbaurecht properties do not come with local restrictions that could limit rental or usage rights.
If you're interested, we go much more into details about the foreign ownership rights in Germany here.
What's the biggest ownership mistake foreigners make in Germany right now?
The single biggest mistake foreigners make in Germany is assuming that signing the purchase contract means they own the property, when in reality ownership only transfers once your name is registered in the Grundbuch (land register), which happens weeks or even months after signing.
If you proceed as though you own the property immediately after signing, you may start renovations, change locks, or make financial commitments before the seller's existing mortgages are cleared and before you have legal title, which can create serious disputes if something goes wrong during the in-between phase.
Other classic pitfalls in Germany include buying an Erbbaurecht property without realizing you do not own the land, skipping a proper review of condo association (WEG) meeting minutes and reserve funds, and underestimating the real estate transfer tax which varies significantly by state.
We have made this infographic to give you a quick and clear snapshot of the property market in Germany. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Germany?
Do I need a specific visa to buy property in Germany right now?
No, you do not need a specific visa just to buy property in Germany, and you can handle viewings, notary appointments, and payment while on a tourist stay under the Schengen 90/180-day rule, though your ability to stay long-term in Germany still follows standard immigration rules.
The most common administrative hurdle for non-residents is not visa status but the documentation that banks and notaries require, including proof of identity, proof of address (possibly with apostille), and verified proof of funds under anti-money-laundering regulations.
You do not need a German tax ID (Steuer-Identifikationsnummer) before buying property, but you will need one if you rent out the property, open certain financial accounts, or have ongoing German tax filing obligations.
Typical documents a foreign buyer must present include a valid passport, proof of address, proof of funds or financing approval, and potentially a power of attorney if you cannot attend the notary appointment in person.
Does buying property help me get residency and citizenship in Germany in 2026?
As of early 2026, buying residential property in Germany does not grant you residency or citizenship, because Germany does not have a golden visa or investor visa program tied to real estate purchases.
To obtain residency in Germany, you need an independent basis such as employment, self-employment, study, family reunification, or meeting specific skilled-worker visa criteria, none of which are satisfied simply by owning property.
Pathways to permanent residency typically require several years of legal residence in Germany with a valid residence permit, and citizenship generally requires eight years of residence plus language proficiency and other integration requirements.
We give you all the details you need about the different pathways to get residency and citizenship in Germany here.
Can I legally rent out property on my visa in Germany right now?
Your visa status does not affect your legal right to own and rent out property in Germany, meaning foreigners can buy residential property and earn rental income regardless of whether they hold a tourist visa, residence permit, or no visa at all.
You do not need to live in Germany to rent out your property, but if you are a non-resident landlord, you must still comply with German tax obligations because rental income from German property is taxable in Germany under non-resident taxation rules (EStG §49).
Other important details include the need to file annual German tax returns for rental income, the option to deduct allowable expenses from your rental profit, and in some cities like Berlin or Munich, local short-term rental restrictions that may limit Airbnb-style letting regardless of your ownership rights.
We cover everything there is to know about buying and renting out in Germany here.
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How does the buying process actually work step-by-step in Germany?
What are the exact steps to buy property in Germany right now?
The standard sequence to buy property in Germany is: find a property and agree on key terms, receive the draft contract from a notary for review, attend the notary appointment (Beurkundung) where the contract is read aloud and signed, wait while the notary handles registrations and mortgage clearances, pay the purchase price once conditions are met, and finally have your ownership registered in the Grundbuch.
You do not have to be physically present for every step, because many buyers use a notarized power of attorney to have someone sign on their behalf, though this requires extra paperwork and lead time if signed abroad.
The deal becomes legally binding for both parties once the purchase contract is notarized at the notary appointment (Beurkundung), which is why Germany requires this step by law for all real estate transactions.
The typical timeline from accepted offer to final registration in the Grundbuch is roughly 2 to 4 months in Germany, though complex cases involving mortgage payoffs or condo approvals can take longer.
We have a document entirely dedicated to the whole buying process our pack about properties in Germany.
Is it mandatory to get a lawyer or a notary to buy a property in Germany right now?
A notary is mandatory in Germany, because a real estate purchase contract that is not notarized does not meet the legal form requirement and is not valid, whereas hiring a lawyer is optional but can be smart in complex situations.
The key difference is that a German notary is a neutral official who ensures the contract is legally compliant and properly executed for both parties, while a lawyer acts as your personal advocate and reviews the deal specifically from your perspective.
If you hire a lawyer for a property purchase in Germany, make sure their scope explicitly includes reviewing the draft contract for risks, explaining condo association (WEG) implications if applicable, and flagging any Erbbaurecht or encumbrance issues before you sign.
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 checks should I run so I don't buy a problem property in Germany?
How do I verify title and ownership history in Germany right now?
To verify title and ownership history in Germany, you should request an up-to-date Grundbuchauszug (land register extract) from the local Grundbuchamt (land registry office), which is the authoritative source for who legally owns the property.
The Grundbuchauszug is the single key document you need, showing the current owner's name, any registered easements or rights of way, and all mortgages or land charges (Grundschuld) attached to the property.
A realistic look-back period for ownership history checks in Germany is typically 10 to 30 years, though the Grundbuch maintains a complete historical record that notaries can access if there are concerns about older encumbrances or disputed transfers.
A clear red flag that should stop or pause your purchase is any unresolved lien, disputed ownership claim, pending court case noted in the register, or a Grundschuld that the seller cannot prove will be cleared before transfer.
You will find here the list of classic mistakes people make when buying a property in Germany.
How do I confirm there are no liens in Germany right now?
The standard way to confirm there are no liens or encumbrances on a property in Germany is to obtain a current Grundbuchauszug (land register extract), which shows all registered charges including mortgages (Grundschuld or Hypothek), easements, and rights of way.
The most common type of lien to ask about in Germany is a Grundschuld, which is a land charge typically registered by banks as security for mortgages, and which must be released or deleted before you can receive clear title.
The best written proof of lien status in Germany is an official Grundbuchauszug dated close to your closing, combined with the notary's confirmation that all existing charges will be cleared as part of the transaction workflow.
How do I check zoning and permitted use in Germany right now?
To check zoning and permitted use for a property in Germany, you should contact the local municipality's building authority (Bauamt) or planning office (Stadtplanungsamt), which maintains the official records for land-use designations in that area.
The document that typically confirms zoning classification in Germany is the Bebauungsplan (development plan) or, for areas without a detailed plan, the Flächennutzungsplan (land-use plan), both of which you can request from the municipality.
A common zoning pitfall foreign buyers miss in Germany is purchasing an apartment marketed for holiday use or short-term rental without realizing that the local municipality may restrict or ban Airbnb-style letting, especially in cities like Berlin, Munich, or Hamburg where such regulations have tightened significantly.
Buying real estate in Germany can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Germany, and on what terms?
Do banks lend to foreigners for homes in Germany in 2026?
As of early 2026, yes, German banks do lend to foreigners for home purchases, though the easiest approvals go to buyers who live in Germany, earn income in euros, and have strong documentation of their financial situation.
Foreign borrowers in Germany most commonly see loan-to-value (LTV) ratios between 60% and 80%, meaning you should plan for a 20% to 40% down payment, with non-residents often required to put down 30% to 40% or more.
The single most common eligibility factor determining whether a foreigner qualifies is provable, stable income, ideally in euros from a German employer, though lenders will consider non-euro income with additional documentation and often stricter terms.
You can also read our latest update about mortgage and interest rates in Germany.
Which banks are most foreigner-friendly in Germany in 2026?
As of early 2026, the most foreigner-friendly mortgage options in Germany typically come through large nationwide mortgage brokers like Interhyp (which compares many lenders), major national banks such as Deutsche Bank and Commerzbank, and international banks with German operations that are accustomed to non-standard borrower profiles.
What makes these lenders more foreigner-friendly is their established processes for handling non-German documentation, English-language support, and experience assessing income from outside Germany or in non-euro currencies.
Most of these lenders will consider non-residents (buyers without German residency), but expect stricter requirements including higher down payments, more extensive proof of income and assets, and potentially a modest interest-rate premium compared to resident borrowers.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Germany.
What mortgage rates are foreigners offered in Germany in 2026?
As of early 2026, typical mortgage interest rates for foreigners in Germany range from about 3.6% to 4.2% APRC for standard owner-occupied loans with good credit profiles, with non-residents often paying an additional 0.2 to 0.7 percentage points above these baseline rates.
Fixed-rate mortgages in Germany are the norm, with most borrowers locking in rates for 10 to 15 years, while variable-rate options exist but are less common and typically start slightly lower before adjusting with market conditions.
We made this infographic to show you how property prices in Germany compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Germany?
What are the total closing costs as a percent in Germany in 2026?
The typical total closing costs for a buyer in Germany in 2026 range from about 7% to 12% of the purchase price, depending primarily on which federal state the property is located in.
The realistic low-to-high range is roughly 6% to 13%, with lower-tax states like Bavaria (3.5% transfer tax) at the low end and higher-tax states like Brandenburg, Thuringia, or Schleswig-Holstein (6.5% transfer tax) at the high end.
The specific fee categories that make up closing costs in Germany include real estate transfer tax (Grunderwerbsteuer), notary fees, land registry fees, and potentially a share of broker commission if an agent was involved.
The single biggest contributor to closing costs in Germany is the real estate transfer tax (Grunderwerbsteuer), which ranges from 3.5% to 6.5% of the purchase price depending on the state and typically accounts for more than half of total closing costs.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Germany.
What annual property tax should I budget in Germany in 2026?
As of early 2026, a realistic annual property tax (Grundsteuer) budget in Germany is roughly 250 to 700 euros per year for a condominium and 400 to 1,500 euros per year for a house, which translates to approximately 270 to 760 USD (or 250 to 700 EUR) for apartments and 430 to 1,620 USD (or 400 to 1,500 EUR) for houses at current exchange rates.
Annual property tax in Germany is calculated based on assessed property values under the reformed Grundsteuer system, multiplied by a municipal rate (Hebesatz) that varies significantly from town to town, so exact amounts depend heavily on where the property is located.
How is rental income taxed for foreigners in Germany in 2026?
As of early 2026, the typical effective tax rate on rental income for foreign property owners in Germany ranges from roughly 20% to 40% of net rental profit, depending on your total taxable income level, because Germany applies progressive income tax rates to rental earnings.
As a foreign owner, you must file an annual German tax return reporting your rental income and expenses, and Germany taxes this income regardless of where you live because rental income from German property is considered German-source income under EStG §49.
What insurance is common and how much in Germany in 2026?
As of early 2026, typical annual building insurance (Wohngebäudeversicherung) premiums in Germany range from about 200 to 700 euros per year for a standard single-family home, which is approximately 215 to 755 USD at current exchange rates.
The most common type of property insurance that owners carry in Germany is Wohngebäudeversicherung (building insurance), which covers fire, storm, water damage, and other structural risks, and is considered essential for any house owner.
The single biggest factor that makes insurance premiums higher or lower for the same property type in Germany is the property's exposure to natural hazards, particularly flood risk, because Elementarschaden (natural hazard) coverage for flooding and heavy rain damage has become increasingly important and expensive in recent years.
Get the full checklist for your due diligence in Germany
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Germany, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| German Federal Ministry of Finance (BMF) | The federal ministry responsible for national tax policy and official guidance. | We used it to explain Germany's property taxes, including transfer tax rates by state and the reformed Grundsteuer system. We cross-checked it with statutory law for accuracy. |
| Bundesbank | Germany's central bank and the reference source for official financial statistics. | We used it to estimate current mortgage rates in Germany as of the first half of 2026. We triangulated it with ECB rate series for consistency. |
| ECB Data Portal | The official EU statistical portal for harmonized banking rates across member states. | We used it to pin down a defensible January 2026 typical rate range for new mortgages. We used it as a cross-check against Bundesbank data. |
| Gesetze im Internet (BGB §311b) | The official publication platform for German federal laws. | We used it to confirm that real estate contracts must be notarized in Germany. We connected this to the buying steps and notary requirements. |
| Gesetze im Internet (BGB §873) | Official German law source for the core rule on transferring property rights. | We used it to explain that ownership transfers only upon Grundbuch registration. We linked it to due diligence and title verification. |
| Grundbuchordnung (GBO) | The statutory framework governing Germany's land register system. | We used it to explain how title and encumbrances are verified through Grundbuch extracts. We connected it to practical checks for buyers. |
| GNotKG | The law governing standardized notary and land-registry fees nationwide. | We used it to estimate notary and land register costs as a percentage range. We combined this with transfer tax to estimate total closing costs. |
| BGB §656c | Official law source for the broker-cost sharing rule on residential properties. | We used it to explain why buyers typically no longer pay the full agent commission. We incorporated this into closing-cost estimates. |
| BaFin | Germany's financial regulator setting consumer-protection standards for lenders. | We used it to explain lender requirements and risks buyers should watch. We kept the mortgage section practical and compliant with BaFin guidance. |
| German Federal Ministry of the Interior (BMI) | The federal ministry responsible for migration policy and official visa guidance. | We used it to frame short-stay versus long-stay visa rules. We connected that to what buyers can do on a tourist stay versus with residence. |
| BAMF | The federal authority for migration and residence permit information. | We used it to explain residency pathways and debunk myths about property purchase granting residence. We triangulated it with BMI visa-policy framing. |
| BZSt | The federal tax authority responsible for Germany's tax ID system. | We used it to explain when you need a German tax ID and what it is. We connected it to purchase logistics and rental compliance requirements. |
| EStG §49 | Official statute defining German-source income for non-residents. | We used it to explain why rental income from German property is taxable in Germany even if you live abroad. We grounded the rental-tax section in this law. |
| Destatis | Germany's official statistics office for housing and demographic data. | We used it to understand what property types dominate the German market. We focused our guide on the properties foreigners will actually encounter. |
| GDV (German Insurance Association) | The national association of German insurers publishing sector-wide data. | We used it to explain why building insurance premiums change over time and why flood coverage matters. We triangulated costs with major insurer ranges. |
| Interhyp | Germany's largest independent mortgage broker comparing multiple lenders. | We used it as a reference for how foreigners can access multiple mortgage options through one platform. We cited it for practical mortgage-shopping advice. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Germany. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.