Can foreigners buy property in Germany?

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

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Germany. If you'd like to learn more about us, you can check our presentation page.

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At InvestRopa, we explore the German real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Berlin, Munich, and Hamburg. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Germany without restrictions?

Germany imposes zero nationality-based restrictions on property ownership, making it one of the most open real estate markets in Europe.

Both EU and non-EU citizens enjoy identical property rights and can purchase any type of real estate throughout the country. This unrestricted access applies to individuals from all countries, including those from Asia, North America, South America, Africa, and Australia.

The German property law treats foreign buyers equally to German nationals in terms of ownership rights, legal protections, and transaction processes. Unlike countries such as Thailand or Singapore that limit foreign ownership, Germany welcomes international investment in its real estate sector without quotas, special zones, or complex approval processes.

As of September 2025, this liberal approach remains unchanged and is protected under German constitutional law, ensuring long-term security for foreign property owners.

Do I need to be a resident in Germany to purchase real estate, or can I buy while living abroad?

You can purchase German real estate while living abroad without any residency requirements.

Non-residents from any country can complete entire property transactions remotely, though some steps may require authorization or power of attorney for representation at notary appointments. Many foreign buyers successfully purchase properties in Germany without ever visiting the country during the buying process.

However, property ownership does not grant any residence rights, visa privileges, or extended stay permissions. Standard immigration rules apply for visits longer than 90 days within a 180-day period for most nationalities.

Living abroad after purchase is completely legal, and many foreign investors own German properties as rental investments or vacation homes while maintaining primary residence elsewhere.

It's something we develop in our Germany property pack.

What types of properties can foreigners buy in Germany—apartments, houses, land, or commercial spaces?

Foreigners can purchase all property types available in Germany without any restrictions.

This includes residential apartments (condominiums), single-family houses, multi-family buildings, vacant land for development, agricultural land, commercial properties, office buildings, retail spaces, and industrial facilities. Both freehold (Eigentum) and leasehold (Erbbaurecht) properties are accessible to foreign buyers, though freehold ownership is far more common.

Agricultural land purchases may require approval from local authorities in some regions, but this applies equally to German and foreign buyers. Building plots for construction are freely available, and foreigners can develop properties according to local zoning regulations.

Commercial real estate transactions above certain thresholds require registration in the German Transparency Register, but this administrative step does not restrict foreign ownership rights.

How much money do I need for a down payment when buying property in Germany as a foreigner?

Foreign buyers should expect to provide 20-40% of the property value as a down payment, with non-EU citizens typically requiring higher equity contributions.

Buyer Category	Typical Down Payment	Additional Requirements
EU Citizens	20-30%	Standard documentation
Non-EU Residents	25-35%	Enhanced income verification
Non-EU Non-Residents	30-40%	Higher documentation requirements
First-time Foreign Buyers	35-40%	Proof of funds origin
Commercial Properties	25-40%	Business plan may be required
Investment Properties	30-40%	Rental income projections
Cash Purchases	100%	Anti-money laundering documentation

What are the typical additional costs like taxes, notary fees, and agent commissions when buying property in Germany?

Total additional costs typically range from 8-15% of the property purchase price, making German transactions relatively expensive compared to some European markets.

Property transfer tax (Grunderwerbsteuer) varies by state, ranging from 3.5% in Bavaria and Saxony to 6.5% in Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein, and Thuringia. Notary and land registration fees add approximately 1.5-2% of the purchase price and are mandatory for all transactions.

Real estate agent commissions range from 2-7% depending on the region and are often split between buyer and seller, though buyer-only payment is common in some areas. Additional costs include property surveys, legal fees, and potential mortgage arrangement fees if financing the purchase.

For a typical €500,000 property purchase, expect total additional costs of €40,000-€75,000 depending on the location and whether an agent is involved.

Do I need a German bank account to complete the property purchase process?

While not strictly mandatory, having a German bank account significantly simplifies the property purchase process and is often required for mortgage applications.

German banks and notaries prefer local accounts for large transactions due to anti-money laundering regulations and easier fund verification. International wire transfers for property purchases can trigger additional scrutiny and delays, making local accounts advantageous for smooth transactions.

For cash purchases, foreign accounts are acceptable, but buyers must provide extensive documentation proving the legitimate source of funds. Most major German banks offer account opening services for non-residents, though this process can take 2-4 weeks.

If obtaining a mortgage, German lenders typically require a local account for monthly payments and related banking services, making it practically essential for financed purchases.

Can foreigners get a mortgage from a German bank, and if so, what are the standard requirements?

German banks offer mortgages to foreigners, though approval criteria and terms vary significantly based on residency status and nationality.

1. **Required Documentation:** - Valid passport and identification documents - Proof of stable income for minimum 2-3 years - Employment contracts or business ownership verification - Credit history from home country - Bank statements from past 6 months - Property purchase agreement and valuation 2. **Income Requirements:** - Minimum annual income of €40,000-€60,000 for most lenders - Debt-to-income ratio below 35-40% - Stable employment history or established business 3. **Special Conditions for Non-EU Citizens:** - Higher down payment requirements (30-40%) - Potentially higher interest rates (0.2-0.8% premium) - Shorter maximum loan terms (20-25 years vs 30+ for residents) - Additional documentation and longer approval processes 4. **EU Citizens Benefits:** - Similar terms to German residents - Standard down payment requirements (20-30%) - Access to competitive interest rates - Streamlined approval processes 5. **Mortgage Types Available:** - Fixed-rate mortgages (most common) - Variable-rate options - Interest-only periods available - Government-backed loans for energy-efficient properties

How high are property taxes and annual maintenance fees in Germany compared to other countries?

German property taxes are notably lower than most developed countries, with annual property tax (Grundsteuer) typically ranging from €200-€800 for residential properties.

Property tax rates vary by municipality but generally represent 0.26-0.35% of the assessed property value annually, significantly lower than countries like the UK (0.4-3.0%), United States (0.5-2.5%), or France (0.5-1.5%). This makes Germany attractive for long-term property ownership from a tax perspective.

Apartment maintenance fees (Hausgeld/Wohngeld) typically cost €1.50-€3.00 per square meter monthly, covering building insurance, cleaning, heating systems, and general maintenance. For a 80-square-meter apartment, expect monthly fees of €120-€240.

Additional annual costs include building insurance (€200-€500), utilities if vacant, and income tax on rental income if letting the property. Germany imposes no annual wealth tax on property ownership.

It's something we develop in our Germany property pack.

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.

Are there any restrictions on renting out a property if I buy one in Germany as a foreigner?

Foreign property owners face no special restrictions on renting out their German properties, enjoying the same landlord rights as German citizens.

Both long-term and short-term rentals are permitted, though local municipalities may impose specific regulations on short-term vacation rentals (Airbnb-style) that apply equally to all owners regardless of nationality. Major cities like Berlin, Munich, and Hamburg have varying rules for short-term rentals, typically requiring registration or permits.

Germany's strong tenant protection laws apply to all landlords, foreign and domestic, requiring compliance with standard lease agreements, rent control regulations in some cities, and proper notice periods for tenancy changes. Professional property management services are widely available for non-resident owners.

Rental income is subject to German income tax, with foreign owners required to file annual tax returns. Tax treaties with many countries help prevent double taxation on rental income.

What legal documents and paperwork are required for foreigners to finalize a property purchase in Germany?

German property purchases require specific documentation and must be completed through a certified notary (Notar) who handles the legal transfer process.

**Essential Documents Required:** - Valid passport or EU identification card - Purchase contract (Kaufvertrag) prepared by the notary - Proof of funds and bank statements - Tax identification number (obtainable from German tax office) - Land registry excerpt (Grundbuchauszug) - Property survey and technical documentation - Anti-money laundering declaration - Power of attorney if not present for notary appointment **Additional Requirements for Commercial Buyers:** - Company registration documents - Transparency Register entry (for purchases above €25,000) - Business purpose documentation - Corporate resolution for property purchase **Process Overview:** The notary reviews all documents, explains the contract terms, handles fund transfers to an escrow account, and manages land registry updates. All contracts must be notarized in German, with official translations required for foreign-language documents.

How long does the buying process usually take from making an offer to becoming the legal owner?

The typical German property purchase process takes 2-4 months from accepted offer to final ownership transfer.

Initial steps include offer acceptance and preliminary contract signing (1-2 weeks), followed by notary appointment scheduling (2-4 weeks depending on availability). The notary appointment itself involves contract signing and payment processing, typically completed within one day.

Land registry updates and official ownership transfer require 4-8 weeks after notary completion, as German land registries (Grundbuchamt) process changes methodically. During this period, the buyer cannot occupy or modify the property.

Cash purchases generally proceed faster than mortgaged transactions, which may add 2-4 weeks for bank approval and fund transfer processes. Complex transactions involving commercial properties or multiple parties may extend timelines to 4-6 months.

It's something we develop in our Germany property pack.

If I buy property in Germany, does it give me any kind of visa, residence permit, or long-term stay rights?

Property ownership in Germany does not grant any visa, residence permit, or extended stay rights beyond standard tourist allowances.

Foreign property owners remain subject to Germany's immigration laws and must obtain appropriate visas for stays exceeding 90 days within a 180-day period. Germany does not operate a "golden visa" or investor residence program based on real estate purchases, unlike countries such as Portugal, Spain, or Greece.

EU citizens enjoy unrestricted residence rights regardless of property ownership, while non-EU citizens must apply for residence permits through standard immigration channels based on employment, family ties, study, or business investment (requiring substantial business creation, not just property purchase).

Property ownership may support certain visa applications by demonstrating ties to Germany, but it does not guarantee approval or provide any special immigration pathways.

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.

Sources

1. InvestRopa Germany Real Estate Guide
2. Rose & Partner Legal Guide
3. Immigrant Invest Germany Guide
4. Global Property Guide Germany
5. Kummuni Property Guide
6. Multilaw Real Estate Guide
7. EasyFX Non-Resident Guide
8. Lawyers Germany Property Guide