Germany is considered one of the most stable and reliable real estate markets in Europe. Economic stability, legal transparency, strong buyer protection, and a wide variety of residential and commercial properties make Germany an ideal destination for investment, property purchase, sale, and rental.
HomeGermany24, headquartered in Berlin and active across Germany, provides professional services in property purchase, sale, rental, and real estate consulting.
Why Germany Is a Smart Choice for Real Estate Investment
- Strong economic stability and secure investment environment
- Reliable and low-volatility housing market
- High demand for rental properties across most German cities
- Highly developed infrastructure including transport, education, and healthcare
- Transparent regulations and a legally secure system for foreign buyers
Property Ownership for Foreign Buyers in Germany
Foreign nationals are allowed to purchase residential or commercial property in Germany without needing permanent residency.
Buying property alone does not automatically grant residency or a visa, but there are no restrictions on foreign ownership, and the process is fully legal for non-EU citizens as well.
Required Documents for Purchasing Property in Germany
Valid Passport
Used for identity verification and official contract registration.
Proof of Residential Address
Address in Germany or the home country, typically verified through utility bills or a rental agreement.
Proof of Financial Capability
Documents showing the buyer’s ability to purchase or finance the property, such as:
- Bank statements
- Employment contract and payslips
- Ownership documents or proof of other assets
Bank Account (German or International)
Required for transferring funds and paying associated fees.
Power of Attorney
If the buyer cannot be physically present, a representative can be authorized through a notarized power of attorney.
Additional Documentation and Financial Verification
SCHUFA Credit Report
A key German credit report that may be requested by banks or notaries.
Tax Documentation and Anti-Money-Laundering (AML) Requirements
In some cases, buyers must provide documents confirming legitimate financial sources.
Certified Translations
If documents are not in German, certified translations may be required.
Mortgage Documentation
Includes loan agreements and supporting bank documents when financing is involved.
Important Note
Documentation requirements may vary depending on the bank, the type of property, or the notary.
It is recommended to confirm the exact requirements before beginning the purchase process.
Standard Legal Steps of Buying Property in Germany
Selecting and Evaluating the Property
Through online portals, real estate agencies, or physical visits.
Important aspects to check:
- Neighborhood and local amenities
- Market prices and investment potential
- Rental status (if the property is currently rented)
Legal and Technical Due Diligence
- Checking the official land registry (Grundbuch)
- Verifying any debts, mortgages, or transfer restrictions
- Reviewing the Energy Performance Certificate (Energieausweis)
- Technical inspection of the building if necessary
Contract Drafting and Signing at the Notary (Notar)
All property transactions in Germany must be carried out in the presence of a licensed notary.
The notary:
- Drafts and explains the contract
- Ensures both parties understand the terms
- Registers the agreement formally
Payment and Registration in Grundbuch
Once the contract is signed, payment is made according to the notary’s instructions.
Finally, the buyer’s name is officially registered in the land registry, completing the transfer of ownership.
Additional Costs Associated with Buying Property in Germany
Property Transfer Tax (Grunderwerbsteuer)
Ranges between 3.5% and 6.5%, depending on the federal state.
Notary and Registration Fees
Approximately 1% to 2% of the purchase price.
Real Estate Agent Commission (Maklerprovision)
Commission rates must be transparently stated in the official contract and agreed upon by both parties.
The commission is payable only after a successful transaction.
Any informal agreements outside legal frameworks are invalid.
Other Costs
- Certified translations
- Banking or administrative fees
- Technical inspections
Recommendation: Buyers should consider an additional 10% to 15% of the property price for extra costs.
Mortgage Options for Non-Resident Foreign Buyers
Some German banks offer mortgages to foreign buyers under stricter conditions:
- A down payment of 20%–40%
- Strong verifiable financial documents
- Preferably a German bank account
- Proof of income or assets
Key Considerations for International Buyers
- Buying property does not grant residency in Germany.
- German tenancy laws strongly favor tenants and are highly regulated.
- Choose the city and neighborhood based on investment goals or personal living plans.
- Consider monthly maintenance costs, building fees (Hausgeld), and insurance.
- Check the Energy Certificate and technical condition of the property.
- Use reputable agents, lawyers, and notaries to ensure legal safety.
Advantages and Challenges of Buying Property in Germany
Advantages
- Long-term financial security
- Stable growth in property value
- Ability to rent out and earn foreign-currency income
- Strong legal and tax stability
Challenges
- Administrative processes may take time
- Strict tenant protection laws
- Relatively high additional purchase costs
- Limited mortgage options for non-residents
Can Foreign Buyers Purchase Property Without German Residency?
Yes.
Foreign nationals can legally purchase residential or commercial property even without a visa or residency permit.
Physical presence in Germany is not mandatory for signing, as the process can be completed through a power of attorney.
However, property purchase alone does not lead to residency.
About HomeGermany24
HomeGermany24, headquartered in Berlin, is one of the most trusted companies specializing in real estate consulting, purchase, sale, and rental across Germany.
With a team deeply familiar with German property laws and market dynamics, we offer:
- Property search and evaluation
- Legal consultations
- Full support throughout the purchase or rental process
Our mission is to provide a transparent, reliable, and hassle-free experience for international buyers and tenants.
With HomeGermany24, buying, selling, or renting property in Germany becomes simple, secure, and fully guided.
