Buying Property in Germany as a Non-EU Citizen: What You Need to Know
- Nov 30, 2025
- 4 min read
Buying property in Germany is an attractive option for many non-EU citizens. Whether you want a home, an investment, or a holiday retreat, Germany offers a stable market and diverse locations. But can non-EU citizens buy property in Germany? The short answer is yes. Germany has very open rules on property ownership. However, there are still a few important points to understand, especially around financing and residence status.
Let's go over some important rules, possible challenges, and financing tips to understand before making a purchase.
Rules for Non-EU Citizens Buying Property in Germany
Germany does not restrict property ownership based on nationality. Non-EU citizens can buy property without needing special permits. This openness makes Germany one of the more accessible European countries for foreign buyers.
However, owning property does not automatically grant residency or work rights. If you plan to live in Germany, you must apply for the appropriate visa or residence permit separately.
Key points about property ownership:
No citizenship or residency requirement to buy property.
No restrictions on the type of property (residential, commercial, land).
No limit on the number of properties owned.
Ownership rights are protected under German law.
Despite these freedoms, some regions may have local regulations affecting property use or development. It is wise to check with local authorities or a real estate lawyer before purchasing.
Practical Challenges for Non-EU Buyers
While the legal framework is straightforward, non-EU buyers often face practical challenges during the buying process.
Language and Documentation
Most property transactions and contracts are in German. Non-German speakers should hire a translator or lawyer to avoid misunderstandings. Key documents include:
Purchase agreement (Kaufvertrag)
Land registry extract (Grundbuchauszug)
Financing agreements
Notary and Registration
A German notary (Notar) handles the property transfer. The notary ensures the contract is legally binding and registers the new owner in the land registry. Non-EU buyers must be present or represented by a power of attorney during notarization.
Taxes and Fees
Buyers pay several fees, including:
Property transfer tax (Grunderwerbsteuer): 3.5% to 6.5% depending on the federal state
Notary and registration fees: around 1.5% to 2%
Real estate agent commission (if applicable): usually 3% to 7% plus VAT
These costs add up to about 7% to 10% of the purchase price, so budget accordingly.
Financing Property as a Non-EU Citizen
Getting a mortgage in Germany as a non-EU citizen can be more complex, but it is possible with the right preparation.
Mortgage Options
German banks offer mortgages to non-EU buyers, but conditions vary:
Higher down payment: typically 30% to 40% of the property price
Proof of stable income and creditworthiness
Residency status may affect loan terms
Some banks specialise in foreign buyers and offer tailored products. Consulting a mortgage broker familiar with international clients can help find the best deal.
Alternative Financing
If bank financing is difficult, consider:
Financing from your home country bank
Private loans or family support
Paying in cash if possible
Currency Considerations
If your income or savings are in a currency other than euros, watch for exchange rate risks. Fluctuations can affect your mortgage payments or property value.
Tips for a Smooth Purchase Process
To avoid common pitfalls, follow these tips:
Work with a local real estate agent who understands the market and legal requirements.
Hire a German-speaking lawyer or notary to review contracts and explain your rights.
Visit the property in person before buying to check its condition and neighbourhood.
Research the local market to ensure the price is fair.
Prepare all documents early, including proof of funds and identification.
Understand ongoing costs, including property tax, maintenance, and utilities.
Key Points Summary
1. Legal rules: Can non-EU citizens own property?
German law does not restrict property ownership by nationality. As a non-EU citizen, you can buy:
A flat
A house
A rental property
Even an entire apartment block
You usually go through the same purchase process as a German citizen, notary, transfer tax, registration and so on.
2. Property and residence are separate issues
Owning a home in Germany does not automatically give you the right to live or work here.
You still need the correct visa or residence permit.
Immigration authorities will consider income, health insurance and other factors, not just property ownership.
Some residence routes may be easier if you can show strong financial ties to Germany, but buying on its own is not a guaranteed path to a visa.
3. Financing as a non-EU resident
If you already live and work in Germany, banks may treat you similarly to other expats:
They will check your residence permit, income and SCHUFA.
You will usually need enough savings to pay closing costs and at least part of the purchase price.
If you live outside Germany, financing becomes harder:
Some banks prefer to lend only to residents.
You may need a bigger deposit (sometimes 30–40% or more).
You may have to work with specialist international lenders or brokers.
Buying in cash removes this problem, but, of course, requires a high capital outlay.
4. Documents you will normally need
Expect to provide:
Passport
Proof of address (in or outside Germany)
Proof of income or wealth
Bank statements
Credit report from your home country (if SCHUFA is not available)
Details of the property being bought
If you do not speak German, arrange for translation at the notary appointment, as the law requires all parties to understand the contract fully.
5. Tax and long-term planning
Non-EU buyers should also think about:
Local taxes such as property acquisition tax or property transfer tax (Grunderwerbsteuer) and property tax or Land tax (Grundsteuer).
How rental income will be taxed in Germany, and possibly, again in your home country.
Inheritance rules, especially if heirs live outside the EU.
A tax adviser who understands both German law and international situations is invaluable here.
Non-EU citizens can buy property in Germany without restrictions on ownership. The bigger obstacles tend to be mortgages, visas and tax planning – not the purchase itself. Language barriers and unfamiliar legal terms make professional help essential. With good advice and enough equity, buying a home or investment property in Germany is perfectly achievable. Start by researching your preferred location and connecting with local professionals to guide you through the process.
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