Medical practice financing: which bank funds setup and takeover?
Establishing, taking over or expanding: practice financing is rarely a single loan, but the right mix of a bank loan, KfW funding and equity. We bring the building blocks together and know the banks that specialise in the medical professions.
What does a practice takeover cost, and in which order is it financed?
A takeover is financed in a fixed order: the KfW application comes first, through your bank and before the project begins. If you have already signed the takeover agreement, the lease or the equipment order, you may lose eligibility, so your bank confirms what counts as the start before you sign. Costs depend on the discipline: according to apoBank, a single-handed GP practice takeover averaged €199,500 in total investment in 2023/2024, a dental one €450,000 in 2024.
Medical practice financing: which lenders provide it, and how does KfW funding come in?
Medical practice financing comes from specialist or general banks, with KfW funding via your house bank.
- How is a medical practice financed in Germany? Rarely with a single loan: the right mix of a bank loan, KfW funding and equity — plus leasing for expensive medical technology. In the KfW StartGeld programme (067) the KfW takes on 80 % of the credit risk through its liability exemption, which eases the house bank’s decision, but customary bank collateral is still discussed. KfW does not require equity, yet it counts in the credit assessment. Financing for doctors.
- Medical practice financing: what is the most common costly mistake? Applying for funding too late. KfW development loans must be applied for before the project begins — if you have already signed the purchase contract or the order, the entitlement may be lost. As a guide, a GP single-practice takeover averaged €188,200 in total investment in 2022/2023 and €199,500 in 2023/2024, a dental one €450,000 in 2024 (apoBank analyses); six-figure sums are the rule.
- Who arranges this? Perini Finance & Property — licensed under §34i and §34c GewO, 650+ banks compared. We know the banks whose lending rules cover practice setup, takeover and expansion — including the specialist medical-profession banks and the KfW application at the start, not the end.
Setup, takeover, expansion — three routes
Despite a falling number of doctors in private practice, setting up remains for many the route to professional freedom. Each path there has its own financing logic.
- New setup: You build from the ground up: premises, medical technology, IT, initial equipment, start-up liquidity. High capital requirement, but full creative freedom.
- Takeover: You buy an existing practice including the patient base. The intangible value (goodwill) is a separate item that must be cleanly valued.
- Expansion / modernisation: New equipment, additional rooms, digitalisation. Often a mix of investment loan, leasing and funding.
What drives the investment sum, and how is goodwill valued?
The investment sums are considerable and depend heavily on the specialism — a GP with ultrasound and ECG has a very different requirement from a radiology practice with X-ray technology and radiation protection.
As a rough guide, apoBank reports for a GP single-practice takeover €110,100 purchase price and €188,200 total investment (2022/2023), and a year later about €121,500 and €199,500, of which €78,000 for modernisation and equipment (2023/2024). A dental single-practice takeover averaged €226,000 and €450,000 in 2024. Medical technology, IT and modernisation are the largest items beyond the purchase price itself. Six-figure sums are the rule, not the exception.
Region matters: in the 2023/2024 apoBank sample a GP takeover in a rural area averaged €151,700 in total investment, in a major city €205,000. A new GP practice from scratch averaged €205,800 in 2022/2023, but only about one in ten GPs chose that route.
Understanding goodwill: in a takeover you pay not only for equipment and fittings, but also for the intangible value — the established patient base and the practice’s reputation. The clean valuation of tangible and intangible assets is the foundation of every sound practice financing. We make sure the goodwill is realistic.
The building blocks of your financing
Practice financing is built from four blocks: a bank loan as the backbone, KfW funding with a liability exemption of up to 80 % of the credit risk, equity and leasing for expensive medical technology.
- Bank loan: The backbone. Classic loans with a fixed instalment suit doctors who want a plannable burden from the start. Specialist medical-profession banks know the typical income and investment patterns and often assess practice projects more favourably than a general commercial bank.
- KfW funding: The KfW supports start-ups in the healthcare sector with low-interest loans for premises, equipment and IT — usable for setup, takeover and expansion. Particularly valuable is the liability exemption: under StartGeld 067 the KfW takes on 80 % of the credit risk, so the house bank carries less risk and lending is easier. A development loan combined with a classic bank loan is a common structure.
- Equity: The more you put in, the better the terms — and the more independent you are of outside capital. KfW StartGeld does not require equity, although it should be contributed where possible and it counts in the credit assessment. Whether a practice can be financed without equity depends on the bank’s check of the case; doctors with a secure income often meet the requirements.
- Leasing: For expensive medical technology (e.g. imaging equipment), leasing can preserve credit lines and maintain liquidity.
KfW in numbers: StartGeld 067 covers up to €200,000 per project, of which up to €80,000 may be working capital, with the 80 % liability exemption and application through your house bank before the project begins (KfW fact sheet of 18 June 2026). It cannot be combined with other KfW or ERP programmes. For larger projects the ERP promotional loan 077 reaches up to €500,000, but finances at most 35 % of the eligible costs and needs a guarantee-bank surety, which adds an approval step. KfW programmes for owner-occupiers is a different set of programmes.
Guarantee banks: a guarantee bank (Bürgschaftsbank) of your federal state guarantees up to 80 % of the default risk to your house bank, up to €2 million per company since 1 January 2023. It replaces missing collateral for the bank, it does not change your duty to repay, and it carries a fee that differs by guarantee bank.
Regional KV grants: each regional Association of Statutory Health Insurance Physicians (KV) pays its investment grants from a structural fund under § 105 (1a) SGB V, and each decides amount, area and conditions in its own guideline. Published ceilings range from €39,000 in Rhineland-Palatinate to €70,000 in Nordrhein and €120,000 in Bavaria where under-supply is established, while Westfalen-Lippe pays no flat grant but offers an interest-free practice loan. Most schemes reimburse after you have started practising, so the bank pre-finances the investment. Treat a grant as a planned extra repayment, not as equity. The German-language KV funding cluster lists all 17 regions.
Illustration, not a commitment: a GP takeover with €199,500 total investment (apoBank 2023/2024) and a grant of €70,000 at the Nordrhein ceiling would leave a residual debt of about €129,500 after reimbursement, before tax and interest. The capital you need on day one stays at €199,500. Plan the liquidity for that gap.
Status and sources. Checked on 4 October 2026: KfW fact sheets for StartGeld 067 and programme 077 (18 June 2026), guarantee-bank guidelines, § 105 SGB V, published KV guidelines as summarised in our KV pages, apoBank analyses 2022/2023, 2023/2024 and 2024. Financing information, not legal or tax advice (§ 1 StBerG, RDG), without guarantee. The guideline valid at the time of your application is decisive.
The most common costly mistake
Applying for funding too late.
Many development loans — above all those of the KfW — must be applied for before the contract is concluded, that is, before the project begins. Anyone who has already signed the purchase contract or the order loses the entitlement. This is the most common and most expensive source of error in practice setups. We therefore put the funding application at the start, not the end.
An important distinction: if it is about your private property (your own home, possibly with practice rooms in the same building), you are in the right place on our page Mortgages for doctors. If it is about wealth building with investment property, that is handled by our partner company AUP Finanzservice UG.
Qualified outside Germany? Licence, specialist recognition, entry in the medical register and admission all come before a bank can finance anything — and the KfW application must be filed before you sign. The full sequence: setting up a practice in Germany.
Frequently asked questions
Can I finance the practice and my private home together?
Yes, combined concepts are possible and in part lead to interest advantages. The clean separation of purposes from a tax point of view is important — you discuss that with your tax adviser, and we structure the financing to fit.
Is the interest on practice financing tax-deductible?
Interest connected with running the practice is in principle deductible as a business expense — both for setup and takeover. The specific tax assessment is handled by your tax adviser.
Which bank is the right one for my practice?
That depends on the specialism, the project and your situation. Besides general banks there are institutions aimed specifically at the medical professions. We compare and select the right one — independently and free.
Does a KV grant count as equity for the bank?
No. Without an approval notice the grant is only an expectation, there is usually no legal entitlement, and most KVs pay after you have started practising. Obligations such as five years of practice in the funded area, with partial repayment if you leave early, are common. Plan the financing so that it works without the grant.
What does a GP practice takeover cost, and how does it split?
apoBank reports about €199,500 total investment for a GP single-practice takeover in 2023/2024: around €121,500 purchase price and €78,000 for modernisation and equipment. A rural takeover averaged €151,700, one in a major city €205,000. Costs differ strongly by specialty.
Which KfW programme fits a practice?
StartGeld 067 covers up to €200,000 per project and typically fits a GP takeover or a smaller setup. Larger projects, common for dental takeovers, may need programme 077 with a guarantee-bank surety. 067 and 077 cannot be combined. The application goes through your house bank before the project begins.
Can I get a practice loan without a land charge?
For established practices there is a business loan of EUR 20,000 to 750,000 without a land charge through our partner bank, for doctors who have been self-employed for at least two full calendar years. Whether and on what terms it is granted is decided by the bank. Details: practice loan without collateral.
How long does the financing commitment take?
With complete documents and a clear financing plan, it goes quickly. We prepare your application so that the bank can decide fast.
Any questions on this topic?
A first consultation is free and without obligation — the commission is, as a rule, paid by the bank. We tell you what this means for your own financing.
Related pages
Practice loan without collateral: up to €750,000 with no land charge for doctors and liberal professions?
Practice loan without a land charge for doctors and liberal professions: EUR 20,000 to 750,000, simplified review, few documents — with a free PDF checklist.
Practice financing for doctors Germany: what must be in place first?
Practice financing in Germany: medical licence and Approbation, capital requirement, KfW funding and the order the steps have to follow.
KV funding for setting up: 17 regional KVs, 17 guidelines (German)
What the regional Associations of Statutory Health Insurance Physicians pay for a practice, how the grant is paid out and why it is not equity. German-language page.
Mortgage income requirements for doctors: which documents count?
Mortgage income requirements for doctors: the documents banks require by career stage, including practice purchase and cases abroad. Free checklist.
Doctor mortgage in Germany: which bank finances a practice and a home?
Doctor mortgage in Germany: home and practice loans, doctors living abroad. 650+ banks compared, bank-independent, §34i. Free consultation.
Mortgage for female doctors: how do banks treat part-time and parental leave?
Mortgages for female doctors: part-time, parental leave, return to work — lenders that assess these life phases fairly. §34i.
Doctor mortgage from abroad: can you finance a property in Germany while living abroad?
Doctor living abroad (Switzerland, UAE, UK, USA) financing in Germany: non-residents, foreign-currency income, lender selection. §34i.
Junior doctor mortgage: how do banks assess salary and fixed-term contracts?
Junior doctor mortgage in Germany: how banks assess a doctor's salary and fixed-term contracts — and why starting early can pay off.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.