Foreign property ownership in Germany, explained: full ownership, no permit, no quota.

Are there restrictions on foreigners owning property in Germany?

No. German law sets no nationality, residency or permit rule for buying residential property, and there are no quotas. A foreign individual, resident or not, can buy on the same terms as a German. No federal page states this positively; it follows from the absence of any restricting statute.

There is also no post-purchase reporting duty for foreign buyers of the kind some other countries have. The rules below are the whole list of what is different.

What exactly does a foreign buyer own in Germany?

Full ownership, Eigentum, of the land and the building. It is the same form of ownership a German buyer gets, with no term that runs out and no separate right for foreigners. If you buy a flat, you also pay into the owners' service charge, the Hausgeld, every month.

That service charge, the Hausgeld, covers operating costs, the maintenance reserve and management, and typically runs at about EUR 2.50 to 4.50 per m² per month.

When does a buyer become the legal owner in Germany?

On entry in the Grundbuch, not on signing and not on paying. Ownership passes only through the parties' agreement plus registration (§ 873 BGB). The transfer agreement, the Auflassung, must be declared by both parties together before a competent authority, and every notary is competent to receive it (§ 925 BGB).

Between signing and registration you are protected by the Auflassungsvormerkung, the priority notice the notary enters for you. More: the Grundbuch, explained.

Can a foreign company buy property in Germany?

Yes, with one extra duty. A company based abroad that owns German real estate, or agrees to buy it, must register its beneficial owners in the German Transparency Register under § 20(1) of the Money Laundering Act. It is the only foreign-specific ownership rule found, and it applies to companies, not to individuals.

A private individual buying in their own name has no equivalent registration.

How must a foreigner pay for property in Germany?

By non-cash transfer. The price cannot be paid in cash, crypto-assets, gold, platinum or gemstones, and the parties must prove to the notary that it was paid by non-cash means before the transfer of ownership is filed (§ 16a GwG). There are no currency controls on the transfer itself.

The money side in full: transferring money to Germany for a property.

Does owning property in Germany give you any right to live there?

No. Buying property does not grant a residence permit. German immigration law is separate from property law, so owning a flat, however expensive, gives no residence right. Whether you can live in it is a question for German immigration law, answered separately from the purchase.

The whole purchase, start to finish: buying property in Germany as a foreigner.

Header photo: Jorge Royan, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.