Heritage Leipzig — buy-to-let
| Item | Amount |
|---|---|
| Purchase price | €220,000 |
| Refurbishment share | €140,000 |
| Equity | €75,000 (34 %) |
| Bank loan | €145,000 |
| Income | CHF — CH company |
| Heritage AfA §7i | 100 % / 12 yrs |
| Example rate | 4.3 % |
Model calculation, no guarantee.
Non-residents · buy-to-let
Buy to let mortgage in Germany: how much will banks lend to non-residents?
German real estate as an investment while living abroad: rental income in the bank calculation and how much they will lend. Germany property investment from outside the country follows its own rules — the yield calculation is only half of it. This case runs as a buy-to-let mortgage — financed as an investment, not owner-occupied.
What determines how much banks lend on a buy-to-let mortgage in Germany?
A buy-to-let mortgage in Germany is possible from abroad, and how much banks lend depends on your income and the rent they credit. The rental income counts toward the bank's calculation, but not in full. The loan-to-value for non-residents is typically 60–100 %, depending on income type and creditworthiness.
Why is German buy-to-let attractive as a non-resident?
A non-resident can finance a rented buy-to-let in Germany, and the rental income counts toward the bank's calculation, though not in full. The loan-to-value is typically 60–100%, depending on income type and creditworthiness.
Can a non-resident finance a rented buy-to-let in Germany? Yes. The rental income counts toward the bank's calculation, but not in full — how much is credited decides the possible amount and differs a lot by institution. In Germany you have only limited tax liability. Which German banks finance non-residents?.
Buy-to-let mortgage: how is it financed? The loan-to-value for non-residents is typically 60–100%, depending on income type and creditworthiness — the country of residence decides which banks take the case, not the range; equity accordingly up to 40% depending on the case, plus costs. Depending on residence and income, about 6–10 banks are active. Which German banks finance non-residents?.
Which depreciation models apply to non-residents?
Straight-line depreciation (2% from 1925, 2.5% before) plus Denkmal-AfA under §7i and special depreciation under §7b apply with residence abroad too, provided there is limited tax liability in Germany. Perini does not give tax advice.
Can I get a buy-to-let mortgage in Germany as a non-resident? Yes — living abroad, you can still invest in German property with a buy-to-let mortgage as a non-resident; historic-building depreciation (§7i), QNG new-builds and existing stock all remain open.
German rental income falls under limited tax liability, and the building depreciation works just as it does for residents.
The difference is the financing: not every bank lends to a borrower resident abroad, and how far a bank will go on the loan-to-value hangs more on the strength of your income than it does for residents.
So the specialised choice of lender decides whether the case happens at all — not the rate.
Also important are a clean separation of capital-raising and purchase, and proof of foreign income.
Which lenders underwrite non-resident buy-to-let, and up to what loan-to-value, we clarify in conversation, not on the page. Not legal or tax advice.
If you live abroad as a German citizen, or want to invest in Germany as a non-resident, a let buy-to-let property is often the better fit than owner-occupation:
Tax liability in Germany only on the rental income — limited tax liability §49 EStG. The depreciation benefits are retained.; Rent payments largely cover the instalment — a cash-flow-oriented investment; Inflation protection and wealth building in a stable currency (EUR); A later return option: on returning to Germany, owner-occupation is possible.
Do straight-line, §7i and §7b depreciation apply from abroad?
Straight-line depreciation applies to all owners, including those living abroad; §7i also applies with residence abroad if there is tax liability in Germany; §7b applies to newly built rental flats that meet EH 40 with the QNG certificate.
Straight-line depreciation: 2 % (built from 1925) or 2.5 % (built before 1925) — applies to all owners, including those living abroad; Heritage depreciation §7i: 100 % of the refurbishment share over 12 years — also applies with residence abroad if there is tax liability in Germany;
Special depreciation §7b (new build): 5 % × 4 years for newly built rental flats meeting EH 40 with the QNG certificate (construction costs max. €5,200/m², assessment base max. €4,000/m²) — also applies to non-residents with limited tax liability; QNG new-build special depreciation: still possible within §7b, plus regular straight-line depreciation.
For non-resident buy-to-let, limited tax liability in Germany is the prerequisite. Involve tax advisers in both countries — we do not provide tax advice.
How is a non-resident buy-to-let financed?
A non-resident buy-to-let is financed with a loan-to-value of typically 60–100 %, equity of up to 40 % plus incidental costs and 6–10 active banks; KfW funding is limited for non-residents.
Loan-to-value: typically 60–100 % for non-residents, 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 (transfer tax, notary, land register);
Pool of banks: 6–10 banks active, depending on country of residence and income; KfW funding: limited for non-residents — KfW 261 (energy refurbishment) is possible case by case; KfW 297 for owner-occupation does not apply; Tranche payout for refurbishment properties — as with heritage financing for residents.
Calculate a mortgage in Germany: how banks credit the rent
The rental income counts toward the bank's calculation, but not in full.
How much of it is credited decides the possible loan amount and differs a lot by institution. Alongside the rent, the strength of your income decides how far the bank goes on the loan-to-value.
Condo Hamburg — buy-to-let
| Item | Amount |
|---|---|
| Purchase price | €355,000 |
| Equity | €130,000 (37 %) |
| Bank loan | €225,000 |
| Income | USD — US company |
| Example rate | 4.4 % |
| Monthly payment | ~€1,230 |
Model calculation, no guarantee.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Frequently asked questions
How much equity do I need for a buy-to-let mortgage in Germany as a non-resident?
Equity is up to 40% depending on the case, plus incidental costs such as transfer tax, notary and land register. The loan-to-value for non-residents is typically 60–100%, depending on income type and creditworthiness.
Is KfW funding available for a non-resident buy-to-let in Germany?
KfW funding is limited for non-residents. KfW 261 (energy refurbishment) is possible case by case. KfW 297 for owner-occupation does not apply.
How many German banks finance a buy-to-let mortgage for non-residents?
Depending on country of residence and income, about 6–10 banks are active. The country of residence decides which banks take the case, not the loan-to-value range.
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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.