Buying property in Germany as a foreigner: no permit, but no bargain either

Germany is about as open as it gets: any foreigner, resident or not, EU or not, can buy German real estate in their own name with no permit, no residency requirement, and no reciprocity clause. The friction is entirely practical — a mandatory notary process, a transfer tax that varies by state, and mortgage underwriting that gets noticeably stricter once you are not a German taxpayer.

Legal eligibility: essentially unrestricted

Unlike Poland or (historically) Czechia, Germany has never had a general foreign-ownership restriction on residential real estate. There is no permit to apply for, no minimum residency period, and no special vehicle (company, trust) required to hold title as an individual. This applies equally to apartments, houses, and land. The only place nationality or residency status genuinely matters is financing (below) and, for non-EU/non-resident owners, some tax and reporting obligations once you own the property.

The process runs through the notary

German property transactions are notary-driven and fairly rigid, which is a feature for buyers: the notary is a neutral, state-appointed legal officer (not either party’s advocate), reads the entire purchase contract (Kaufvertrag) aloud at signing, and is responsible for the sequence that protects both sides.

• Draft contract review — the notary sends a draft contract in advance; buyers should read it (and, if German is not a first language, get an independent translation) before the signing appointment.
• Notarised signing (Beurkundung) — both parties sign before the notary; the contract has no legal effect otherwise.
• Priority notice (Auflassungsvormerkung) — filed with the land registry (Grundbuch) immediately after signing, blocking the seller from selling to anyone else in the meantime.
• Land registry entry — ownership legally transfers only once the buyer is entered in the Grundbuch, typically weeks after the purchase price and transfer tax have cleared.

What it costs: Grunderwerbsteuer varies a lot by state

Germany’s real-estate transfer tax (Grunderwerbsteuer) is set by each of the sixteen federal states, not nationally, and ranges roughly 3.5% (Bavaria, Saxony) to 6.5% (several northern and western states) of the purchase price. On top of that, budget notary and land-registry fees (around 1.5–2% combined) and the agent’s commission (Maklerprovision) — since a 2020 reform, this is split between buyer and seller in most residential sales rather than loaded entirely onto the buyer, though the exact split is negotiated per deal. None of these are optional or negotiable away in the way the purchase price itself can be. See the hidden-costs guide for how this stacks up against Czechia, Poland, and Spain.

Financing as a non-resident

German banks lend to non-residents, but underwriting tightens considerably once you are not paying German tax on your income: expect to be asked for a larger down payment (often 30–40%+ versus a resident’s 10–20%), proof of stable foreign income, and sometimes a German bank account and a local point of contact. Rate and term also tend to be less favourable than for a resident borrower with the same credit profile. Run realistic numbers before you make an offer — the mortgage calculator gives a starting estimate at current rates.

Munich sits well above every other major German city on price per square metre, with Hamburg and Berlin forming a second tier. See the full ranked table on the German property-prices page, or browse listings directly, e.g. Berlin or Munich.

Before you sign

• Get the draft Kaufvertrag translated and reviewed independently — the notary is neutral, not your advocate.
• Confirm which state’s Grunderwerbsteuer rate applies and budget it into your offer from the start.
• If financing locally, get a written Finanzierungsbestätigung (financing confirmation) before committing to a purchase date — non-resident underwriting takes longer.
• Check the Grundbuch extract for existing charges (Grundschuld) before signing; old liens do not disappear automatically at sale.