A Comprehensive Guide To Buying Property In Germany 2023

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Can a foreigner buy property in Germany? Are you an ex-pat thinking of buying property in Germany? If so, this is the article for you! With this comprehensive guide, you’ll learn about purchasing property as a foreigner in Germany.

From navigating the laws around foreign ownership to understanding German taxes, prepare to make well-informed decisions and come closer to owning your slice of paradise!

Introduction: Overview of Germany’s Property Market

Buying Property In Germany As A Foreigner

Germany has a large, stable economy, and its property market is no different. In 2018, domestic and foreign investors spent a record €31 billion on German real estate, an increase of 7% from the previous year. The most popular cities for investment are Berlin, Frankfurt, and Munich.

The German property market is very different from other markets in Europe. For one, no “buyer’s market” or “seller’s market.” Instead, there is a relatively even balance between buyers and sellers, which results in stable prices. Additionally, the German government provides several incentives for foreigners who wish to invest in the country’s real estate market.

Another key difference is that Germans purchase properties for investment purposes rather than live in them. If you’re looking to buy a property in Germany as a foreigner, you’re likely competing against other investors rather than individual buyers. However, this also means plenty of opportunities for investment in the German property market.

If you’re considering buying property in Germany as a foreigner, it’s essential to be aware of the unique characteristics of the German market. With some research and planning, you can Maximize your chances of success when investing in Germany’s vibrant property market.

What Are the Property Laws in Germany Regarding Foreigners?

Germany has strict laws when it comes to foreigners buying property. Non-EU nationals can only purchase property for investment purposes and must obtain a special permit from the local authorities. There are also restrictions on how much land a foreigner can buy.

For EU nationals, there are no such restrictions. You can buy property in Germany for either personal or investment purposes. The process is relatively straightforward if you’re an EU national looking to purchase property in Germany.

If you’re a non-EU national, you’ll need to apply for a permit from the local authorities before purchasing any property. The application process can be lengthy, and there’s no guarantee that your application will be approved.

Before you start the process of buying property in Germany, it’s essential to consult with a lawyer to get an understanding of the legalities involved.

Required Documentation to Buy Property in Germany

When buying property in Germany as a foreigner, there are certain required documents that you’ll need to provide to complete the purchase. Here is a list of the documentation typically required:

  • A valid passport
  • A German residence permit (if applicable)
  • Proof of income and financial stability
  • A copy of the purchase agreement
  • The deed to the property
  • Property insurance

If you plan on buying property in Germany, have all the required documentation before beginning the purchase process.

Types of Property/Real Estate Available in Germany

Germany is a vast and varied country with many different property and real estate types. Whether you’re looking for a city center apartment, a rural retreat, or something in between, you’re sure to find what you’re looking for in Germany.

City apartments are the most popular type of property among foreign buyers in Germany. There are many reasons for this, including city living often comes with a lower price tag than suburban or rural properties. Cities like Berlin, Hamburg, and Munich are top-rated among buyers from all over the world.

If you want something more tranquil, a rural property might be more up your street. Plenty of idyllic villages are located throughout Germany, each with a unique charm. Buying a property in the German countryside immerses you in the local way of life.

Of course, there are also plenty of properties located somewhere in between cities and villages. These semi-rural areas can offer the best of both worlds – access to urban amenities while enjoying a slower pace.

Different Financial Options When Buying Real Estate

As a foreigner, many financing options are available when buying real estate in Germany. Depending on your financial situation and goals, you may take out a mortgage, pay in cash, or use a combination of both.

Mortgages: To finance your German property purchase with a mortgage, you must shop for the best deals. Remember that most mortgages require a down payment of at least 20%, so that you will need access to some cash upfront. Various types of mortgages are available, so it is important to compare interest rates, fees, and terms before deciding.

Cash: Paying for your German property in cash is one of the simplest options. This may be the best option if you have saved or can access the funds quickly. However, remember that paying in cash means you will not have any monthly payments and will not build equity in your property.

Combination: Another option is to pay for part of your German property purchase with cash and finance the rest with a mortgage. This can help you spread the purchase cost and may be more affordable than cash. As with any mortgage, compare interest rates, fees, and terms before signing the dotted line.

Tips for Completing Your Purchase in Germany as a Foreigner

If you’re looking to buy property in Germany as a foreigner, there are a few things you’ll need to keep in mind. Here are some tips to help you complete your purchase:

1. Get financing in place before you start shopping. Foreigners can usually get mortgages from German banks, but the process can be time-consuming, so it’s best to get started early.

2. Hire an excellent real estate agent. They can help you navigate the purchase process and should have experience working with foreign buyers.

3. Be prepared to put down a large deposit. In Germany, buyers typically put down a deposit of 20% or more of the purchase price.

4. Make sure all of your paperwork is in order. You’ll need proof of income, identity, and residency when applying for a mortgage and during the purchasing process.

5. Be patient! The purchasing process in Germany can take several months from start to finish, so make sure you’re prepared for that before getting started.


Buying a property in Germany as a foreigner can be an enriching experience. There are many things to consider when investing in German properties. Still, foreign nationals can purchase their dream homes in this beautiful country with the correct information and knowledge.

We hope this comprehensive guide has helped give you an overview of the steps involved so you can approach buying property confidently and securely.

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