Tax non-resident · Russia · sanctions · capital transfer

Buy a house in Germany while living in Russia

For a Russian residence, it is not creditworthiness that decides the financing but whether — and how — the equity reaches Germany at all. This is currently the most demanding of the residence constellations, and we say so plainly rather than glossing over it.

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Can I finance a property in Germany while living in Russia?

In principle yes, but Russia is currently one of the most demanding country-of-residence constellations among Germans abroad. Russia is not an EU member, so the conversion right under §503 BGB does not apply — that offers little relief, since the real hurdle is the capital transfer itself: over 100 Russian banks are fully excluded from SWIFT and EU payment traffic (as of the 21st sanctions package, June 2026), and the list keeps changing. Transfers via non-sanctioned institutions remain legally possible, but German banks increasingly scrutinise them closely or decline them as a matter of internal policy. Anyone trying to route around sanctions via third countries or cryptocurrency risks fines of up to €40 million and imprisonment under the AWG amendment of 06 February 2026. We check in advance whether, and by what route, the transfer is workable with your bank at all.

Starting point

The capital transfer is the real question

For most countries of residence the first question is whether the income is sufficient. For Russia it is first: does the equity leave the country at all, and through which bank? Under the EU sanctions packages against Russia, more than 100 Russian banks are now fully excluded from SWIFT and European payment traffic — the 21st sanctions package of June 2026 added roughly 35 more. The list keeps changing and has to be checked live before every individual transfer, not once at the outset.

Transfers via non-sanctioned banks remain legally permitted. In practice a second hurdle comes on top, unrelated to the law itself: several German banks have decided, independent of the sanctions status, to stop handling Russia-related transfers altogether — for reputational and compliance-effort reasons, as an internal business decision. Which bank still accepts a given case is therefore also a question of current house-bank policy, not only of the sanctions list.

Anyone attempting to route around sanctions via a third-country account or cryptocurrency takes on considerable legal risk: since the AWG amendment of 6 February 2026, this carries fines of up to €40 million and, in particularly severe cases, imprisonment of up to ten years. We work exclusively with regular, documented routes.

Structure

What works in your favour — and what shouldn't be overrated

Russia is not an EU member state. The conversion right under §503 BGB, which narrows the pool of lenders for EU countries outside the euro, does not apply — structurally the same advantage as with a residence in China or the US. That does little to ease the real hurdle, though: the pool of lenders is already narrowed sharply by the transfer question itself, so one fewer exclusion barely moves the needle.

Still helpful: the property is located in Germany and valued at German market value. The bank's security sits in a familiar legal environment regardless of where you live. That is why financing remains possible in principle despite the transfer hurdles — it is simply rarer and needs considerably more lead time than for most other countries.

It gets noticeably easier if part of the equity already sits in Germany (from an earlier sale, an inheritance or a German account) or if a second borrower resident in Germany or the EU co-signs. Such a circumstance belongs at the start of the conversation, not in a footnote.

Preparation

What to prepare

Settle the transfer route first: which non-sanctioned bank currently still executes SWIFT transfers for your case — we check this before you start looking for a property, not after.
Source of funds: salary, sale, inheritance, company profit — every source needs complete evidence.
Currency: the sanctions list keeps changing — a route cleared at the start may no longer be open by completion. We accompany the transfer, not just the initial check.
Time buffer: extra scrutiny on every Russia-related transfer means more time than the standard case — plan for it realistically.
Proof of income over a longer period, translated and in traceable form.
Second borrower: check whether a co-signer resident in Germany or the EU widens the pool of lenders.

FAQ

Frequently asked questions

Can the equity be transferred out of Russia at all?

To a limited extent, yes — and that is the key question to settle before you start looking for a property. Over 100 Russian banks are now fully excluded from SWIFT and EU payment traffic under the EU sanctions packages, and the list keeps growing; it has to be checked live before every single transfer. Transfers via non-sanctioned institutions remain legally possible.

Why do some German banks decline Russia-related transfers even where it would be legally allowed?

Because legal permission and a bank's internal policy are two different things. Several German institutions have stopped Russia transfers altogether, regardless of the sanctions status, for reputational and compliance-effort reasons rather than legal obligation. Which bank still handles a given case changes and needs to be checked individually.

Do I risk legal consequences if I route funds via a third-country account?

Yes, and substantially so. Since the AWG amendment of 6 February 2026, deliberately circumventing sanctions via third countries or cryptocurrency exchanges carries fines of up to €40 million and, in severe cases, imprisonment of up to ten years. We work exclusively with regular, documented routes.

Does the conversion right under §503 BGB apply to me?

No. It attaches to EU member states outside the euro. Russia is not an EU member, so this point falls away for you — the same as with a residence in China or the US.

What if my bank in Russia gets sanctioned while the purchase is under way?

That is exactly why we check the transfer route continuously, not once at the start. The sanctions list has expanded several times in 2026 alone; a route that was open at the first conversation can be blocked weeks later. A fallback route belongs in the plan from day one.

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