How to Buy Property in Germany as a Foreigner: A Guide You Must Read Before Acting!
Foreigners can legally buy property in Germany, whether they are EU or non-EU citizens, and they do not need to live in the country to do so. There are no restrictions on foreign ownership, and buyers can purchase land, apartments, or houses as private individuals or through a company.
To buy property in Germany as a foreigner, you need to find a property, sign a notary-certified contract, and pay related taxes and fees—financing is optional but regulated. If you require a mortgage, German banks may ask for a valid residence permit, proof of income, and a good SCHUFA score.
Buying property in Germany as a foreigner is relatively accessible, but success depends on your residency status, financial profile, and how well you understand the legal process. EU citizens typically face fewer barriers, while non-EU buyers may need higher down payments and extra documentation.
Germany offers one of Europe’s most stable real estate markets, making buying a house in Germany a long-term, low-risk investment strategy. Rental demand remains strong in major cities, legal protections are robust, and the market has shown consistent—if modest—price growth.
This guide explains how to buy property in Germany as a foreigner, including step-by-step instructions, financing options, and expert tips. Whether you are interested in buying a house or buying an apartment in Germany as a foreigner, you’ll find everything you need to navigate the real estate market.
Can Foreigners Buy Property in Germany?
Yes. There are no legal restrictions on foreigners buying property in Germany. Whether you’re an EU citizen or a non-EU resident, you can purchase real estate—including land, houses, and apartments—without needing German citizenship or a permanent residence permit.
However, your residency status and income will influence your ability to obtain a mortgage from a German bank. While EU citizens typically face fewer financing hurdles, non-EU buyers may be asked for a higher down payment or more extensive financial documentation.
Is Buying Property in Germany a Good Investment?
Yes, but with caveats. Buying property in Germany remains a stable and relatively low-risk investment—especially in cities with strong demand like Berlin, Munich, Hamburg, and Frankfurt. Germany’s conservative banking system and tenant protections keep the market steady, preventing the kind of speculative bubbles seen elsewhere.
Pros of Buying Property in Germany:
- Strong legal protection for property owners
- No restrictions on foreign ownership
- Steady long-term value growth (especially in urban areas)
- High rental demand in key cities
Considerations:
- High transaction costs (10–15% of the purchase price)
- Strict tenant protection laws can limit flexibility for landlords
- Property appreciation is moderate, not explosive
- Not all regions see consistent growth—some rural areas may stagnate
Buying a House in Germany as a Foreigner: What You Need to Know
1. Choose the Property Type
Foreigners can buy:
- Apartments (Eigentumswohnung)
- Detached houses (Einfamilienhaus)
- Multi-family homes (Mehrfamilienhaus)
- Land (with construction permits)
The most common choice for foreigners is buying an apartment in Germany for personal use or investment. Houses are more common in suburban and rural areas, while apartments dominate urban markets.
2. Understand the Total Costs
Buying property in Germany comes with additional costs beyond the purchase price:
| Cost Type | Typical Range |
|---|---|
| Property Transfer Tax | 3.5% – 6.5% (varies by state) |
| Notary & Land Registry | ~1.5% – 2% |
| Real Estate Agent (Makler) | ~3.57% (incl. VAT) |
| Legal/Translation Services | Optional but recommended |
Total transaction costs range from 10% to 15% of the purchase price.
3. Find the Right Property
You can search for properties using portals like:
- ImmoScout24
- Immowelt
- eBay Kleinanzeigen (less reliable, but useful)
- KUMMUNI
Make sure the property has an energy certificate (Energieausweis) and that all legal records are up to date.
Before You Buy: Is Property in Germany a Good Investment for Foreigners?
Buying a house in Germany as a foreigner can seem like a safe investment—but the reality is more complex, especially if you’re not planning to live in the property yourself. Before signing anything, it’s critical to understand the long-term risks and costs involved in owning and managing real estate in Germany.
High Property Transaction and Holding Costs
Germany may offer ownership rights to foreigners, but it comes with high acquisition and holding costs. You can expect to pay 10–15% of the purchase price in fees, including:
- Property transfer tax (3.5%–6.5% depending on the federal state)
- Notary and land registry fees (~2%)
- Agent commissions (up to 3.57%)
- Annual property tax (Grundsteuer)
On top of that, maintenance costs, shared building reserves (for apartments), and property management fees can easily eat into your rental income, especially in older or poorly maintained buildings.
Tenancy Laws Strongly Favor Tenants, Even If the Tenant Scams You
Germany has some of the strongest tenant protection laws in the world. While these are great from a social stability perspective, they can create serious challenges for landlords—particularly foreign ones unfamiliar with the system.
- You cannot easily terminate a tenant’s lease, even if you’re the owner and need the space.
- Rent increases are heavily regulated, especially in cities with rent caps (Mietpreisbremse).
- Long-term tenants can stay indefinitely unless they violate the contract or you meet very narrow legal grounds for termination (Eigenbedarf).
Landlords Can Be Exploited by Tenants—And It Happens Often
Some tenants in Germany are well-versed in their legal protections and abuse the system deliberately, especially when they sense the landlord is foreign or lacks legal experience.
Examples include:
- Refusing to pay rent while still occupying the property, knowing eviction takes months.
- Creating false claims of harassment or discrimination to delay eviction proceedings.
- Demanding financial compensation to vacate voluntarily—even when legally obligated to leave.
This puts foreign landlords at serious risk of being trapped in legal battles, unable to access or sell their own property for years, while still paying taxes and maintenance fees.
You May Be Powerless Even with a Valid Reason to Terminate the Lease
In Germany, even if you have “Eigenbedarf” (personal need to occupy the apartment), you must prove your claim in court if the tenant refuses to leave. And courts often side with the tenant if:
- The tenant is elderly
- Has children
- Is low income or medically vulnerable
So, owning an investment property does not guarantee control over how or when it’s used. Foreign investors often underestimate this and end up stuck with non-paying or legally protected tenants they cannot remove for years.
Think Twice if You’re Buying Solely for Rental Income
If your plan is to generate passive income, buying property in Germany as a foreigner may not be the best short-term strategy, unless:
- You have a trusted local property manager
- You fully understand tenant rights and legal procedures
- You can financially absorb long periods without income
Otherwise, you may find yourself financially drained and legally powerless, especially if your tenant weaponizes the system against you.
Why You Should Read This Guide Before Making a Decision
This guide doesn’t just show you how to buy a property—it also prepares you for the reality of being a landlord in Germany. If you’re buying a house in Germany as a foreigner without plans to live in it, understand the risks first, not just the glossy sales pitches.
You’ll learn:
- Whether buying an apartment in Germany as a foreigner is worth it
- What hidden costs most expats overlook
- How to reduce risk if you still want to invest
- Why buying for personal use is sometimes safer than renting it out
Owning property in Germany is easy. Controlling it is not.
Financing: How to Get a Mortgage as a Foreigner in Germany
Can Foreigners Get Mortgages in Germany?
Yes—but your eligibility depends on:
- Residence permit type
- Length of stay in Germany
- Employment status
- Income level
- SCHUFA score
Mortgage Terms in Germany:
- Loan-to-Value (LTV): 60–80% (non-EU buyers may need 30–40% down)
- Duration: Typically 10–25 years
- Interest rates (2025): ~3% – 4.5% fixed
- Required: German bank account, SCHUFA, proof of income
Tip: If you’re a non-EU buyer with no German income, your best chance is to finance the property in cash or through an international mortgage provider.
Step-by-Step: How to Buy Property in Germany as a Foreigner
Step 1: Secure Financing or Prepare Capital
Get pre-approval from a bank if you need a mortgage. If buying in cash, prepare a fund transfer strategy and account for exchange rates and international fees.
Step 2: Find a Property
Work with a trusted agent (Makler) or directly contact sellers through property portals. For Berlin-based investments, KUMMUNI offers opportunities for fully managed, turnkey apartments.
Step 3: Make an Offer
Offers are typically non-binding in Germany until the notary signs the contract. Once your offer is accepted, you move to the due diligence and contract phase.
Step 4: Appoint a Notary (Notar)
All property purchases in Germany must be notarized. The notary prepares the sales contract, ensures compliance with German property law, and registers the transaction in the land registry (Grundbuch).
Step 5: Sign the Purchase Agreement
Both parties sign the notarized contract. At this point, the transaction becomes legally binding.
Step 6: Pay Purchase Price & Fees
You’ll receive a timeline for transferring the purchase price and covering transaction costs like taxes, notary fees, and agent commissions.
Step 7: Land Registry Entry
Once payment is confirmed, your ownership is recorded in the official land registry. You are now the legal owner.
Buying an Apartment in Germany as a Foreigner: Special Considerations
Apartments (Eigentumswohnungen) come with shared ownership responsibilities. You’ll pay:
- Hausgeld (maintenance fees)
- Reserve fund contributions
- Voting rights in the homeowners’ association (WEG)
Be sure to:
- Review minutes of the last three WEG meetings
- Understand upcoming renovations and monthly fees
- Ask for the Teilungserklärung (declaration of division)
Tax Implications of Buying Property in Germany
Personal Use:
- No income tax if you occupy the property yourself
Investment Use (Rental):
- Rental income is taxable in Germany
- Deductible expenses include mortgage interest, repairs, and depreciation
- Capital gains tax (Spekulationssteuer) applies if you sell within 10 years
Non-Resident Taxation:
- Even if you live abroad, rental income from a German property is taxed in Germany
- Double taxation treaties often apply to avoid being taxed twice
But Should You Buy Property in Germany as a Foreigner?
In short: Yes—buying property in Germany as a foreigner can be a good investment, especially if you’re prepared, well-informed, and clear about your goals. For personal use, it offers security. For investment, it offers potential—but only with the right strategy and local knowledge
Buying property in Germany as a foreigner is entirely possible—and in many cases, a smart long-term decision. You gain access to a legally protected, economically stable real estate market that offers ownership rights equal to German citizens.
If you’re buying to live in the property yourself or plan to use it as a second home, it can absolutely be worth it. You’ll avoid rising rents, gain long-term housing security, and potentially build equity over time.
As an investment, buying property in Germany is also viable—but only if you know what you’re doing. The legal environment is complex, tenant protections are very strong, and mismanaging a rental can result in financial strain. It’s crucial to fully understand the legal framework, cost structures, and long-term obligations.
