Buy a house in Germany as a foreigner
How to buy a house in Germany as a foreigner: the full process from offer to notary, what it costs and which banks lend to non-residents. Buying property in Germany as a foreigner is legally unrestricted — the financing is where it gets specific.
Can a foreigner buy a house in Germany, and how does financing work?
Yes — buying property in Germany as a foreigner is legally unrestricted, regardless of nationality or country of residence. Where it gets specific is financing: the process runs from offer through to the notarial deed, and not every bank lends to non-residents on the same terms as to German residents. Costs on top of the purchase price typically include the notary, land registry entry and real-estate transfer tax, which German banks generally do not finance — these have to be covered from equity. Which banks actually lend, and on what terms, depends on residency status, income currency and the property itself, which is why comparing across a wide pool of lenders matters more here than for a standard domestic purchase. The legal right to buy is never the obstacle; finding the right lender is.
No restrictions on foreign ownership
Unlike several other European countries, Germany does not restrict property ownership by nationality or residence status. EU citizens, non-EU citizens, residents and non-residents can all acquire freehold property on the same legal footing. There is no approval process and no obligation to live in the country.
What differs is financing. A German bank assessing a borrower without a German residence or employment contract is looking at a case its standard process was not designed for — and most simply decline rather than adapt.
House prices in Germany and what comes on top
Beyond the purchase price itself, budget 8 to 13 % in ancillary costs. The largest item is property transfer tax, set by each federal state and ranging from 3.5 % to 6.5 % — it depends solely on where the property is located, never on where you live. Notary and land registry together add roughly 2 %, and the buyer's share of agent commission comes on top where an agent is involved.
Plan these as equity. German banks generally do not finance ancillary costs, and transfer tax and notary fees fall due before the loan is disbursed. Calculate your figure with the purchase cost calculator.
The purchase process step by step
- Clarify your financing frame first. Not after you find a property — a seller in Germany expects a buyer who can demonstrate funding, and a financing commitment takes time you will not have once a property is on the table.
- Find the property and check the listing. Living space, year of construction, energy class and stated ancillary costs are the points where listings are most often incomplete or imprecise. Our property purchase checklist sets out the seven points and four red flags to check before you view.
- Assemble your documents. Income evidence, existing commitments, identification. Complete documentation is the single biggest factor in how fast — and how favourably — a bank prices your case.
- Secure the financing commitment. Between three days and four weeks once documents are complete.
- Notarial deed. In Germany the purchase contract must be notarised; the notary is neutral and acts for both parties.
- Land registry entry. Ownership transfers on registration, not on signature.
The German-language detail on timing is on our process page.
Financing as a non-resident or foreign earner
This is the part of the process that decides whether the purchase happens at all. If you live outside Germany, earn in a foreign currency, or hold a residence permit rather than citizenship, most German banks will treat your file as an exception — and decline it rather than assess it.
A small number of lenders handle exactly these cases as routine business, with loan-to-value ratios in the region of 60 to 70 % for non-residents. The decisive step is lender selection, not negotiation. See mortgages for non-residents and how German mortgage rates are built.
Frequently asked questions
Can foreigners buy property in Germany?
What are the purchase costs on top of the price?
Do I need to pay the purchase costs from my own funds?
How long does a financing commitment take?
Does the transfer tax depend on where I live?
Related pages
Mortgage rates in Germany
How the rate is built and what raises it for expats.
Mortgage rates in Germany →Document checklist
What German banks expect from non-resident applicants.
Document checklist →Clarify your financing frame before you make an offer
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