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Property purchase

Foreign ownership

There are no limits on foreign ownership in Germany; non-Germans can buy, own and sell an unrestricted quantity of land and homes, act as landlords, and develop property (with the correct permits) just as if they were German nationals. Buyers from EU countries have access to residency and labour rights as set out in EU law; non-EU nationals should consult their local German embassy to find out their particular rights.

Buying steps: purchase contract

Once an offer for the property has been accepted by the vendor, the buyer will instruct a notary to draw up a purchase contract. This must be done in German, so non-German speakers must find an English-speaking notary and pay extra to have an English translation of the contract (the English version is not the binding version).

Buying steps: checks

At this point the buyer should instruct his or her solicitor to make title checks on the property; a survey may also be carried out. Should financing be necessary, the buyer is legally obliged to show the notary a written promise of funds made by a reputable bank. If the purchase is to be made with cash, the buyer needs to present proof of the funds.

Buying steps: completion

If all is in order the parties shall agree a date at which the contract will be signed and funds transferred. On this date the two parties meet with the notary, who reads the contract out in full. The buyer will transfer the funds into an escrow account set up by the notary.

Costs of purchase

The taxes and fees which must be paid during a transaction can add up to 12% of the value of the property. This sum is not included in sales prices quoted by agents and buyers must bear this in mind when calculating budgets.
The following are payable by the buyer during the purchase process (the precise figures depend on the value of the home):

• Real estate transfer tax of 3.5% of value
• Notary fees of between 0.5 and 1.5% of value
• Registration fees of up to 0.5%
• Agent’s fee (or commission of between 1.5 and 3%)

Meanwhile the vendor must pay his agent a fee of between 1.5 and 3%.
The entire purchasing process normally takes around 40 days, assuming all runs smoothly.

Related items

Documents and Reports

	Germany property investment report (409Kb)
	Germany country guide (860Kb)
	Germany property buying guide (953Kb)
Documents and Reports

Other related pages

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