Moving to Germany from USA — Buy a House
Residence in the USA or Canada — a very limited choice of banks. What you need to know, and why choosing the right bank is decisive. Moving to Germany from the UK changes some of the paperwork, not the fundamentals of financing.
In short
Can I finance a property in Germany while living in the USA or Canada?
Yes, though the choice of banks is very limited. USD/CAD income is accepted only at 6 to 10 specialist banks, with a discount of 10–50 % depending on currency and type of income. Loan-to-value 60–100 %, depending on income type and creditworthiness — the country of residence decides which banks take the case, not the range; equity up to 40 % depending on the case, plus incidental costs — which bank takes your case is settled in the conversation.
How to buy a house in Germany: why do so many banks decline a US residence?
The main obstacle is regulatory, not the distance: German banks must identify and report accounts held by US persons under FATCA, and for some lenders that compliance workload — not the credit risk — is the reason for rejection. For Canada this mechanism does not bite in the same way.
How do you finance German property from the USA or Canada?
Through a small but stable circle of lenders, and by keeping the issues apart. Many German banks are cautious here for three reasons: exchange-rate movement between dollar and euro, FATCA reporting duties, and the question of which law governs the loan contract. Because of the FATCA workload some houses decline US residence outright; what matters is approaching the ones that assess rather than refuse.
USD and CAD income works with 6 to 10 specialist banks, at a discount of 10 to 50 % depending on currency and income type. The loan-to-value runs at 60 to 100 %, so equity reaches up to 40 % plus purchase costs; the country of residence decides the lender pool, not the range. The origin of funds must be documented without gaps under money-laundering law. What decides the file is preparation: documents in English, a settled question of applicable law, and a lender that has both in its process.
USA/Canada residence at a glance
Why the USA and Canada are a special category
Many German banks see a US residence as elevated risk: USD/EUR exchange-rate swings, FATCA reporting obligations, different legal systems. Some banks decline a US residence outright. I know the banks that assess it — and the ones that decline across the board.
FATCA note: US persons with foreign accounts may have particular reporting obligations. Please consult a tax adviser in both countries — that is independent of the financing.
CRR III and rented properties: Since 1 January 2025 the new EU capital regulation CRR III applies. It distinguishes, for capital-adequacy purposes, between "income-producing" real estate (IPRE — where repayment relies substantially on rental income) and owner-occupied properties or those serviced from other income. Investment cases with a residence abroad can therefore be calculated more strictly by some banks than pure owner-occupation — a further reason why the choice of banks is so narrow for a US/Canada residence.
Terms USA/Canada
- Loan-to-value: 60–100 %, depending on income type and creditworthiness — the country of residence decides which banks take the case, not the range; equity up to 40 % depending on the case, plus incidental costs
- USD/CAD income: possible at 6 to 10 specialist banks, with a 10–50 % discount
- Minimum loan: often €150,000–200,000 — for small amounts, US cases are not worthwhile for banks
- Legal question: German banks usually require German law to govern the loan agreement — standard
- Notary appointment: a power of attorney with apostille (US notary) or travelling in person to Germany
- Equity transfer: US bank statements are accepted; the actual transfer to Germany is a standard banking process
Financing from other countries
Scandinavia
USA, UK & Asia
UAE & Dubai
All countries of residence
Australia & New Zealand
Not the distance — the reporting obligations
Most people assume distance is the problem. It is not: powers of attorney, video identification and remote completion are routine. What sets this case apart is the regulatory weight that a US connection brings with it.
German banks are obliged under intergovernmental agreements to identify and report accounts held by US persons. The term is broader than most expect — it covers US citizens regardless of where they live, and green card holders. For a proportion of lenders, the resulting compliance workload is the reason for the rejection, not the credit risk. That is frustrating, because it has nothing to do with your financial strength. It is also predictable — and avoidable, if you approach the right houses.
For Canada this mechanism does not bite in the same way. The case is usually simpler — but it remains a foreign-currency case.
Two things to settle before you apply
- USD/CAD income. Banks that take the case convert the income into euros and apply a safety discount to it. That many lenders decline outright is down to internal country lists, FATCA and processing effort. The circle that will finance is small — but it exists.
- Source of funds. Equity transferred from a US account must be documented without gaps: payslips, statements, and where relevant the proceeds of a property sale. This is the point at which approved financings stall shortly before completion — not because the money is problematic, but because the chain of evidence is incomplete. We assemble it before the application, not after.
One further point for those planning to return: do not choose too short a fixed-rate period. Otherwise the refinancing falls precisely into the window where your income is hardest to evidence — between resigning there and signing a contract here.
Request a feasibility check
I review your specific financing situation — free, non-binding, in German, English or Russian.