Buying property in Germany as a foreigner: yes, no permit. The notary does the heavy lifting.

Can foreigners buy property in Germany?

Yes. German law does not restrict foreign individuals, resident or not, from buying residential property. There are no quotas, permits or nationality rules, and the owner holds full ownership (Eigentum) of both land and building. No federal page states this positively; it follows from the fact that no restricting statute exists.

The one foreign-specific rule found applies to companies, not people: a company based abroad that owns or agrees to buy German real estate must register its beneficial owners in the German Transparency Register (§ 20(1) GwG). The detail: foreign property ownership in Germany, explained.

Does buying property in Germany give you residency?

No. Buying property does not grant a residence permit in Germany. Immigration law is separate from property law, so the purchase and any visa are two different questions with two different sets of rules. Nothing about owning a German flat changes your right to live in Germany.

If residence is the goal, start with the immigration rules, not the property search.

How does buying property in Germany work, step by step?

Through a notary, by law. The notary checks the Grundbuch, drafts the contract and reads it out in full at signing. Then the notary secures your claim with a priority notice, collects the releases, tells you when the price is due, and applies for your entry as owner once the price and the transfer tax are paid.

1. Notarised contract. A contract to buy land must be notarised, or it is void (§ 311b BGB). It is read out in full; if you do not speak German well enough, it must be translated to you (§ 16 BeurkG).
2. Priority notice. The notary applies for an Auflassungsvormerkung in the Grundbuch, which protects your claim against later disposals by the seller.
3. Releases. The notary gathers the municipality's waiver of pre-emption rights and the seller's bank release for existing land charges.
4. Price due. The notary sends the Fälligkeitsmitteilung, the notice that the price is due. Pay by bank transfer: cash, crypto and gold are not allowed.
5. Tax clearance and registration. Once the transfer tax is paid, the tax office issues a clearance certificate and the notary applies for your entry as owner.

Buying from a developer as a consumer, you receive the draft contract two weeks before signing (§ 17(2a) BeurkG). If you cannot attend, a representative can act for you.

What does it cost to buy property in Germany?

Transfer tax (Grunderwerbsteuer) is set by each state and runs from 3.5% in Bavaria to 6.5% in states such as NRW and Brandenburg; Berlin is 6.0%. Add notary and land registry fees of about 1.5% to 2% of the price, and about 3.57% for the buyer's half of a broker's commission.

Added up, a brokered purchase runs from roughly 8% to 9% of the price in Bavaria to about 12% in the 6.5% states. That total is my arithmetic from the published components, not a published figure. Every state rate in one table: Germany property buying costs.

What taxes does a foreign owner pay in Germany?

Every year, property tax (Grundsteuer), reformed from 1 January 2025 and set partly by each municipality. On rent, a non-resident landlord is taxed at the normal progressive rates of 14% to 45%, without the basic tax-free allowance. On sale, the gain is taxable only if you sell within 10 years of buying.

Residential rent paid to a non-resident individual is not withheld at source; the owner files an annual German return. The full breakdown: Germany property tax for foreigners.

Can a non-resident get a mortgage in Germany?

Case by case, and not dependably. Banks look at your country of residence, the currency you earn in and your credit history, and they ask for high equity. Published figures range from a 10% to 20% deposit plus all closing costs at the low end to around 40% for buyers living outside the EU.

No bank's terms were checked directly for this page. Plan for 40% or more equity, or cash, and treat any mortgage offer as a bonus you confirm in writing before you sign at the notary.

What rent rules should a foreign landlord in Germany know?

Two. In areas a state designates as a tight housing market, the rent brake caps the rent at the start of a new lease at 10% above the local comparative rent; designations must end by 31 December 2029. And cities such as Berlin and Munich tightly restrict holiday lets.

The rent brake does not apply to a flat first used and let after 1 October 2014, or to the first letting after comprehensive modernisation. Whether a given city is designated depends on the current state ordinance, so check it for your address. Holiday-let rules and published yields: Germany rental yields.

Header photo: Nordenfan, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.