Germany buying guideGermany welcomes foreign buyers with no restrictions on nationality or residence, and the legal system is among the most predictable in Europe. The real work lies in reading the paperwork and understanding that transfer tax depends on the federal state, from 3.5% to 6.5%. This Germany property buying guide covers the sequence, the full cost stack and what owners pay each year. Start with the stock on our Germany page.
Open to everyone, regulated by paper
Anyone can buy German property, whether or not they live there. You do not need a residence permit, and banks and agents treat foreign buyers as routine clients. What you do need is a German tax ID for the transaction and a bank account for payments, both of which can be arranged by a notary or a lawyer.
Ownership is freehold. For flats, you own a defined unit plus a share of common property, set out in the Teilungserklaerung (declaration of division), and you become a member of the owners' association. Houses and plots are registered individually in the land register (Grundbuch).
German buyers lean on documents more than on negotiation. Expect thick folders for each flat: the declaration of division, the last three years of owners' meeting minutes, the energy certificate, floor plans and the reserve fund balance. If a seller will not produce them, treat that as information.
The sequence from viewing to registration
- Find and view. Agents show properties by appointment, and popular city flats can go within days.
- Reserve (optional). A reservation agreement may be offered but is not binding unless notarised.
- Review the documents, ideally with a lawyer or surveyor.
- Notary contract draft. The notary, chosen by common practice by the buyer, sends a draft at least two weeks ahead for consumer protection.
- Signing at the notary. The notary reads the entire contract aloud, and both parties sign. The contract becomes binding.
- Priority notice. A Vormerkung is entered in the land register to protect your claim to ownership.
- Payment. Once the notary confirms conditions, you pay the seller, and pay the transfer tax when billed by the tax office.
- Registration. After the tax clearance certificate arrives, the notary applies for you to be entered as owner. Handover usually follows payment.
From signing to registration takes several weeks to a few months.
Full cost stack
The biggest variable is the transfer tax, which each federal state sets. Our research of 2026 rates gives the pattern in the table, but some sources disagree on a couple of states, so check with the notary.
| State group | Grunderwerbsteuer rate | Examples |
|---|---|---|
| Lowest | 3.5% | Bavaria |
| Mid | 5.0 to 5.5% | Baden-Wuerttemberg, Lower Saxony, Hamburg, Bremen, Saxony |
| Higher | 6.0% | Berlin, Hesse, Mecklenburg-Western Pomerania |
| Highest | 6.5% | Brandenburg, North Rhine-Westphalia, Saarland, Schleswig-Holstein |
| Notary and land register | Approx. 1.5 to 2% of price | All states |
| Agent fee | Up to about 3.57% each for buyer and seller | Split rule for homes |
Agent fees and the 2020 rule
Since late 2020, when a consumer buys a flat or single-family house, the buyer and seller must split the agent's commission, and the buyer's share cannot exceed the seller's. This changed older practices where the buyer paid it all. A total of around 7% including VAT, split 3.57% each, remains common in many regions, though it varies. Together with tax, notary and registry fees, plan on roughly 8% to 13% of the price on top, depending on the state and agent.
On a 400,000 euro purchase, transfer tax alone ranges from 14,000 euros in Bavaria to 26,000 euros in North Rhine-Westphalia, a gap that surprises many people comparing cities.
Ownership costs and rules to learn
- Hausgeld. Flat owners pay monthly service charges that fund maintenance, insurance, heating and the reserve fund.
- Grundsteuer. Annual property tax levied by municipalities, reformed in recent years with new valuation rules.
- Energy rules. The building energy law (GEG) can require upgrades to heating systems, so ask about the age of boilers and planned works.
- Rental rules. Rent control applies in many cities, and tenants have strong protection. A flat sold with a sitting tenant brings those rights with it, and landlords' ability to end a lease for personal use is limited.
- Capital gains. Gains on property sold within ten years of purchase can be taxable, with a relief for owner-occupied homes. After ten years, private sales are normally tax-free.
Check sizes and types before you decide: apartments, houses, villas, penthouses, land and commercial all follow different rules.
Financing, residency and where deals fail
German banks lend to non-residents, but expect equity of 30 to 40% and thorough income checks, and rates that follow euro markets. Read our Germany financing guide and run numbers in the mortgage calculator.
There is no property-linked golden visa. Owning a flat does not create a residence right, so non-EU buyers who want to live in Germany need a visa under standard routes.
Typical failures: ignoring the owners' meeting minutes, missing a pending special assessment, forgetting that some states tax acquisitions heavily, and taking a lender's valuation as the market price. For market context see our Germany analysis, cheap listings and homes under 100k.
Last updated 8 October 2026
Frequently asked questions
Can a foreigner without residency buy property in Germany?
Yes. There are no restrictions based on nationality or residence. You will need a tax ID and a bank account, and the notary will guide you through the legal steps.
How much is the real estate transfer tax in Germany?
It depends on the state, from 3.5% in Bavaria to 6.5% in states such as North Rhine-Westphalia and Brandenburg. A small number of sources disagree on a couple of states, so confirm with the notary.
Who pays the estate agent?
For flats and single-family homes bought by consumers, the commission must be split between buyer and seller, and the buyer's share cannot exceed the seller's.
What does the notary do?
The notary drafts and reads the contract, files the priority notice, monitors payment conditions and applies for registration. The notary is impartial and serves both sides.
How much deposit do non-residents need for a mortgage?
Typically 30 to 40% of the purchase price, plus costs. Conditions depend on the bank and your income documentation.
Do I pay tax when I sell?
Private gains on property held for more than ten years are normally not taxed, and owner-occupied homes have separate reliefs. Sales within ten years can be taxable, so get tax advice.