Buying Property in Germany as an Expat: The Real Process (2026)

Many expats assume buying property in Germany is either forbidden to foreigners or wrapped in special permits. Neither is true: Germany lets almost anyone buy, with remarkably few restrictions on nationality or residence. The real barriers are financial and procedural. The purchase costs, layered on top of Germany's already-high property prices, can add well over a tenth to your bill in non-refundable cash, and the process runs through a notary in a way that feels alien to buyers used to other systems. Knowing what it actually costs and how the process works, before you fall for a flat, saves you from a nasty surprise at the worst possible moment.

This guide covers buying property in Germany as an expat: that you are allowed to, the heavy purchase costs, the notary-centred process, the deposit you need, and the mortgage reality. The honest numbers, not the listing-site optimism.

Yes, foreigners can buy

Start with the reassuring fact: Germany places almost no restrictions on foreigners buying property.

• EU and non-EU citizens can buy
• Residents and even non-residents can generally buy German real estate
• There is no special permit needed and no nationality bar

So the question is not whether you are allowed, you are, but whether you can fund and navigate the purchase. Unlike some countries that restrict foreign property ownership, Germany is open: a non-resident foreigner can buy a German flat as freely (in legal terms) as a German citizen can.

The real challenges are funding (mortgages are stricter for non-residents, below) and the costly, notary-centred process (also below). So set aside any worry about permission, and focus your energy on the money and the mechanics, that is where buying in Germany actually gets hard. Whether you should buy at all is the rent-vs-buy question; this guide assumes you have decided to.

The purchase costs that catch people out

This is the part that ambushes unprepared buyers: the extra costs of buying are substantial, typically around 10-15% of the purchase price, on top of it.

The main components:

• Property transfer tax (Grunderwerbsteuer): roughly 3.5-6.5% depending on the state (the single biggest cost)
• Notary and land-registry fees: around 1.5-2%
• Often an estate-agent commission (Maklerprovision): can be several percent

So on a €400,000 flat, the purchase costs alone can be €40,000-60,000, and crucially, these are mostly not financeable. German banks lend against the property value but generally will not finance the transaction costs, so you need that 10-15% in cash, over and above any deposit on the price itself.

The biggest line is the property transfer tax (Grunderwerbsteuer), which varies by state from around 3.5% (e.g. Bavaria) to 6.5% (several states), a meaningful difference on a large purchase. So the same flat costs more to buy in a high-transfer-tax state than a low one.

So the rule for budgeting a German property purchase: take the price, add 10-15% in non-refundable cash costs, and ensure you have that available on top of your deposit. Many would-be buyers discover too late that they have the deposit but not the costs, derailing the purchase at the notary stage.

The notary-centred process

The German buying process revolves around the notary (Notar), and this surprises buyers from systems where lawyers or agents run the deal. The notary is central and legally required.

The notary's role:

• Drafts the purchase contract (Kaufvertrag)
• Reads it out to both parties at signing, ensuring everyone understands
• Oversees the official signing
• Handles the land-registry (Grundbuch) transfer of ownership

Crucially, the notary is neutral, not your advocate. They represent the legality of the transaction, not your interests, so they will ensure the contract is valid and both sides understand it, but they will not negotiate for you or warn you off a bad deal. If you want someone in your corner, that is a separate adviser.

But the purchase is not legally valid without the notary, you cannot just sign a private contract and transfer money. The notarised contract and the Grundbuch entry are what make you the legal owner. The notary's fee is part of the purchase costs above.

So the typical flow:

1. Agree the price with the seller (often via an estate agent)
2. Arrange financing (mortgage approval, below)
3. The notary drafts the contract; you review it (ideally with advice)
4. Notary appointment: the contract is read out and signed by both parties
5. The notary handles the transfer tax, land-registry entry, and release of funds
6. You pay, the Grundbuch is updated, and you become the owner

So expect the notary, not an agent or lawyer, to be the pivot of the whole transaction. Understand their neutral role, read the contract carefully (or have it checked), and budget their fee into your costs.

Deposit and mortgage reality for expats

Two final practicalities: how much cash you need, and whether you can borrow the rest.

The deposit and cash needed: German banks typically expect you to cover the purchase costs (the ~10-15%) from your own funds, and often want an additional equity contribution toward the price itself (commonly 10-20% or more). So you generally need savings well beyond the deposit alone, especially as a foreigner or non-resident, where banks lend more conservatively. A rough planning figure: have 20-30%+ of the price in cash (costs plus equity) before seriously house-hunting.

The mortgage (Baufinanzierung): yes, expats can get one, but it can be harder, especially for non-residents or newcomers. German banks assess:

• Your income (stable German income is strongest)
• Your SCHUFA (credit record, matters a lot for approval)
• Your residence status (residents have the easiest path; non-residents face stricter terms)
• Your equity (more equity, better terms)

So residents with stable German income and a good SCHUFA have the easiest path; non-residents and newcomers face stricter terms and larger deposit requirements. A mortgage broker who specialises in expat/non-resident lending is genuinely worth it, they know which banks lend to your profile and on what terms, and the full mortgage picture is in our Baufinanzierung guide.

The bottom line: buying property in Germany is open to foreigners with no permit needed, but the real work is financial. Budget 10-15% in non-financeable purchase costs (transfer tax, notary, often agent) on top of the price, expect to need 20-30%+ in cash overall, understand the notary's central but neutral role, and arrange a mortgage early, harder for non-residents but doable with the right broker. Plan the money first; the permission is the easy part. (And note that gifted or inherited property carries its own tax.)

What to do this week

• Confirm you can fund the purchase: budget 10-15% of the price in non-financeable cash costs (transfer tax, notary, often agent) plus an equity contribution, aiming for 20-30%+ of the price in cash.
• Check your SCHUFA and income position, then approach a mortgage broker experienced with expats/non-residents early, since lending terms are stricter for newcomers.
• Understand the notary's central, neutral role: the purchase is not valid without them, but they do not represent your interests, so have the contract checked.

FAQ