To buy an apartment in Germany, you'll need a valid residence permit, a German bank account, proof of income, a down payment (10–30%), a positive SCHUFA score or financial history, and enough funds to cover additional costs like taxes, notary fees, and agent commissions.

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How to Buy an Apartment in Germany: A Guide for Expats and Foreigners

Buying real estate in Germany is a major financial step—and for expats, it often means navigating unfamiliar processes, financing rules, and legal terms. Whether you’re planning to settle down, invest in a rental apartment, or secure long-term housing in Germany, it’s crucial to understand the full picture.

This comprehensive guide explains the process of buying an apartment in Germany, including mortgage options, interest rates, SCHUFA credit checks, joint loans for couples, and key legal requirements that apply to both locals and foreigners.

Can Foreigners Buy Property in Germany?

No Nationality Restrictions, But Financial Rules Apply

Germany has no legal restrictions on foreigners purchasing property. Non-EU citizens, EU residents, and expats on residence permits can all buy property legally. Ownership gives you the same rights as German citizens, but it does not grant residency or visa benefits.

To be eligible for a German mortgage, most banks require:

A valid residence permit
Stable income in euros
A German bank account
Proof of long-term stay or employment

If you’re buying without financing, you can proceed more freely—but the same legal process applies.

Step-by-Step: How to Buy an Apartment in Germany

1. Search for Property

Use popular platforms like:

Immobilienscout24, Immonet, and eBay Kleinanzeigen
Local agents (Makler), especially if you want help in English
Specialized portals for new-build apartments or investment property

2. Schedule a Viewing and Ask the Right Questions

Don’t just focus on the apartment—ask about:

Monthly Hausgeld (building maintenance fees)
Reserves for major repairs (Instandhaltungsrücklage)
Property energy rating and building status (e.g., Altbau vs Neubau)
Number of units in the building (for sound insulation and shared costs)

3. Make a Formal Offer

Offers are not binding until signed at the notary. There is no official bidding process, but you can negotiate the price in most cases—especially for older or vacant properties.

Additional Costs Beyond the Purchase Price

What to Budget for When Buying

On top of the listed price, buyers must cover:

Grunderwerbsteuer (property transfer tax): 3.5%–6.5% depending on state
Notary and registration fees: ~1.5%–2%
Real estate agent commission: 1.5%–3.57% (in shared-cost regions)
Renovation/furnishing: if the apartment is unfurnished or needs updates

Expect to pay 10–15% extra in closing costs. These are typically not financed by the bank, so plan to cover them from savings.

SCHUFA: The Key to Mortgage Approval

What Is SCHUFA and Why It Matters

The SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is Germany’s credit rating agency. It plays a central role in mortgage approval.

Banks use your SCHUFA score to evaluate:

Payment history (bills, loans, phone contracts)
Outstanding debts
Financial reliability

A positive SCHUFA score improves your mortgage chances and can help you secure better interest rates.

Can Expats Get a SCHUFA Score?

Yes. As soon as you register in Germany and open bank accounts, your financial activity contributes to your SCHUFA. You can request a free yearly report or get an instant paid version online for rental or mortgage applications.

If you’ve only recently arrived and don’t yet have a SCHUFA record, banks may:

Request bank statements from your home country
Accept a larger down payment
Suggest a joint loan with a partner who has a local credit history

Joint Loans for Couples and Co-Buying Property

Can Couples Apply for a Mortgage Together?

Yes—joint mortgages are common in Germany. You can apply for a shared loan if you’re:

Married or in a registered partnership
Long-term cohabitants with joint finances
Buying property together as co-owners

Both incomes are considered, which often improves borrowing capacity.

However, keep in mind:

Both parties are equally liable for repayment
Credit histories of both applicants are reviewed
Divorce or separation can complicate property ownership

For unmarried couples or friends buying together, a co-ownership agreement (Miteigentumsvertrag) is strongly recommended to define:

Ownership shares
Rights of use and occupancy
What happens in case of resale or separation

Mortgage Options in Germany

Popular Loan Types for Buying Property

Annuitätendarlehen (Repayment mortgage): Monthly payments stay the same; interest decreases as principal increases
Full repayment loan: Higher monthly payments but no remaining balance after the fixed term
Surgery-only mortgage: Not applicable in real estate—applies only to pet insurance (ignore in this context)

You can fix your mortgage rate (Zinsbindung) for 5, 10, 15, or 20 years, with longer terms providing stability but slightly higher rates.

How Much You Can Borrow

Banks typically finance:

Up to 80–90% of the property value for residents
60–70% for foreigners without permanent residence

You’ll need to contribute:

10–30% down payment
All additional costs (taxes, notary, agent fees)

Interest Rates on Home Loans in Germany

Current Mortgage Rates

Mortgage interest rates in Germany fluctuate based on market trends, but as of now, you can expect:

3.5%–4.5% for 10-year fixed-rate mortgages
Slightly lower rates for 5-year terms
Lower interest for high equity (more down payment)

Use online calculators provided by banks to compare offers. Mortgage brokers (Baufinanzierungsvermittler) can help you find deals tailored for expats.

Legal Process: Notary, Land Registry, and Payment

The Role of the Notary (Notar)

The notary prepares and finalizes the purchase agreement. Only after it is signed at the notary’s office does the sale become binding.

The notary registers the ownership change with the Grundbuch (land registry)
You receive a request to pay the purchase amount, usually within 4–6 weeks
The notary also handles the property transfer tax (Grunderwerbsteuer) notification

Taking Ownership

Once payment is made and your name is officially in the land register, you receive legal possession of the apartment, including rights to rent it out or live in it.

Tax Implications of Buying Property in Germany

Annual Costs for Apartment Owners

Property tax (Grundsteuer): Paid yearly; amount depends on location and property size
Hausgeld: Monthly building fees for maintenance, cleaning, trash, etc.
If you rent out the apartment, rental income is taxable in Germany

There is no wealth tax, but capital gains tax applies if you sell within 10 years and the property wasn’t used as your primary residence.