Germans abroad · living outside Germany

Non-residents: financing property in Germany

You are a German citizen living in Switzerland, Austria, the Netherlands, the USA, the UK or Asia — and you want to buy property in Germany. As an investment or for a later return. I know the banks that finance this constellation — not every bank does.

Constellations

Where my clients live

Three large groups of Germans abroad — each with its own set of banks and requirements.

Largest market

Switzerland (CHF)

German passport + Swiss residence, CHF income, pension-fund money as equity.

View page → Established

Elsewhere in the EU

Netherlands, Austria, Italy, Spain, France — euro residence.

View page → More complex

USA, UK, Asia

Third countries, USD/GBP/SGD, US-law topic, a smaller circle of banks.

View page →

Hurdles

What banks check when you live abroad

Mortgage Credit Directive + §503 BGB: conversion right for foreign-currency loans — banks must implement it, and many shy away from the effort.
Which law governs the loan agreement? Often unclear with a US or UK residence — some banks want a legal opinion, others have it in their standard process.
Income in a foreign currency: banks typically calculate with a 25 % safety discount on the income converted into euros.
Credit assessment abroad: there is often no SCHUFA score — alternative evidence is needed (bank statements, tax assessments, employer confirmation).
The building-society trap: German building societies (Bausparkassen) often do not lend to residents abroad — combination models are risky. I approach suitable banks directly.

What’s possible

Realistic terms

Loan-to-value: 60–90 % depending on country of residence and income — typically 70–80 % for Germans abroad with good creditworthiness.
Fixed-interest period: 5, 10, 15 or 20 years — the same as for German residents.
Interest rates: usually with no surcharge; a few banks calculate 0.1–0.3 % higher because of the extra effort.
Proof of equity: can be provided from abroad and in English — no advance transfer to Germany is needed.
KfW: limited for non-residents; check case by case — KfW 261 for renovation can partly apply.
Notary appointment: a personal appointment in Germany or a certified power of attorney is possible.

FAQ

Common questions

What is a German abroad / a tax non-resident?

German abroad: a German citizen with residence outside Germany. Tax non-resident (in the banking sense): anyone without residence or habitual abode in Germany — regardless of citizenship. The bank looks at residence, not the passport. What matters is the status at the time of application.

Which banks finance Germans living abroad?

A small circle of about 6–10 institutions — mostly Volksbanken and Sparkassen with experience in international business, plus two or three specialised large banks. Which bank fits depends on the country of residence, the income currency and the property.

What is the Mortgage Credit Directive and §503 BGB?

The Mortgage Credit Directive was transposed into German law in 2016. §503 BGB provides a conversion right for foreign-currency loans — under certain conditions the borrower can demand that the bank convert the loan into euros. This applies only if the income is in another EU currency (PLN, SEK, DKK). For CHF, USD, GBP — that is, non-EU currencies — it does not apply.

Model calculations

Example financings

Residence USA · USD

Apartment, Hamburg Altona — buy-to-let

Purchase price€355,000
Equity€130,000 (37 %)
Bank loan€225,000
IncomeUSD — US company
Conversion rightNo
Example rate4.4 %
Monthly payment~€1,230

Model calculation, without guarantee. Terms depend on creditworthiness.

Returnee · Singapore

Apartment, Munich — return in 2 years

Purchase price€495,000
Equity€185,000 (37 %)
Bank loan€310,000
IncomeSGD/USD
Special featureReturn financing
Example rate4.5 %
Monthly payment~€1,720

Return financing widens the circle of banks.

Other countries of residence

Financing from other countries

Residence

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