Buying a home in Germany is a calm affair compared with other countries, once you accept the ritual. There is no heated bidding in the street and no promise of sale signed in a café. There is a notary, a long draft contract, a tax bill and a land register. Understanding the sequence is what makes buying property in Germany safe for a newcomer.
Can foreigners buy property in Germany?
Yes, on the same terms as Germans. Germany has no special authorisation regime for foreign buyers, and the EU treaty bans restrictions on movements of capital, including with Switzerland and the UK (article 63 TFEU). Your residence status does not matter for the purchase itself, although it matters for your mortgage. Our bank account guide covers how lenders judge a newcomer.
What are the steps to buy a property in Germany?
- Set a budget that includes costs. Add the property transfer tax, notary and land-register fees, and possibly the agent's commission to the price.
- Check the agent's mandate. If an agent (Makler) is involved, the mandate must be at least in text form, which includes email (§ 656a BGB). The commission rules are below.
- Check the property and its papers. Ask for an extract of the Grundbuch (owner, mortgages, easements). For a flat in a block, ask for the minutes of owners' meetings and the declaration of division. Have an independent expert assess the building.
- The notary drafts the contract (Kaufvertrag) and sends it to you in advance. Read it all.
- Signing before the notary (Beurkundung). The transfer of ownership (Auflassung) is declared before the notary too (§ 925 BGB). The notary usually has a priority notice (Auflassungsvormerkung) entered in the register, which protects you from a resale or seizure between signing and transfer (§ 883 BGB).
- Pay the property transfer tax. The notary reports the sale to the tax office, which sends you a bill, due one month later (§ 15 GrEStG). After payment, the tax office issues a certificate (Unbedenklichkeitsbescheinigung) without which the registration cannot happen.
- Pay the price on the date in the contract, usually once the notary confirms the conditions are met.
- Registration. The notary applies to the land registry. You become the owner when you are registered.
- After the purchase, register your address (Anmeldung) if you live there and expect the property tax bill (Grundsteuer).
A German purchase mixes civil law, tax and mortgage questions, and the order of payments matters. Moovy can explain each step and the questions to ask the notary, in plain English. It cannot replace the notary or a lawyer, and it does not sign or negotiate for you.
How much does it cost on top of the price?
The property transfer tax (Grunderwerbsteuer) is 3.5% under federal law (§ 11 GrEStG), but each Land sets its own rate. Official sources show Berlin at 6% (since 1 January 2014), Hamburg at 5.5%, and Bremen at 5.5% for sales since 1 July 2025 (5% before). For other Länder, check the Land's finance ministry, the tax office or the notary, who knows the rate on signing day. It is due one month after the tax bill.
Notary and register fees follow a legal scale (GNotKG), the same for every notary, and they depend on the value of the property. They cover the deed, the notary's formalities and the monitoring of payment. The land registry then charges separately for entering you as the new owner and for the priority notice. VAT and postage come on top of the notary's fees, and a mortgage secured on the property adds fees of its own. Ask the notary for a written estimate before signing.
The agent's commission is free to negotiate but regulated for homes bought by private individuals. If the agent acts for both sides, the commission is split equally (§ 656c BGB). If only the seller hired the agent, you cannot be bound to pay more than they do, and only after they have paid their share (§ 656d BGB).
What if you do not speak German?
Tell the notary as soon as you receive the draft. The law (§ 16 BeurkG) then requires the notary to have the deed translated orally rather than just read out, either by the notary or by a sworn interpreter, who also signs. You can also ask for a written translation attached to the deed. Do not sign anything you do not understand.
How does a mortgage fit in?
A lender must check that you are likely to repay the loan (§ 505a BGB). The law has no special rule for foreigners, but a short work history, probation period, foreign income or a small down payment make the file harder. Banks differ, so compare several offers. For some loans, including those signed at the notary, you have a withdrawal right or a reflection period of at least seven days (§ 495 BGB).
What traps should you avoid?
- Signing a private "agreement in principle". A promise to sell real estate that is not signed before a notary is void in Germany. Do not pay a deposit on a simple written promise.
- Forgetting that the notary is neutral. The notary informs both parties but does not defend your interests against the seller. For personal advice on defects or negotiation, you need a lawyer or adviser.
- Underestimating extra costs. With a 6% tax in Berlin plus notary, register and perhaps agent, the extras are heavy.
- Paying before the priority notice is registered. Without it, your right is not protected.
- Ignoring the co-ownership. For a flat, look at the repairs voted or coming (roof, heating).
- Assuming the tax rate is the same everywhere. It differs by Land and can change.
Which taxes and rules apply after you buy?
A tenant pays no property tax directly, but an owner receives a yearly Grundsteuer bill from the municipality, calculated under the reformed rules since 1 January 2025. If you sell within ten years, a gain may be taxable, unless you lived in the property yourself under the conditions of § 23 EStG: see a tax adviser. If you live in another country or rent the property out, the tax treaty between your country and Germany decides who taxes the income.
Is buying property in Germany right for a newcomer?
That is a personal question, but the official facts frame it. The up-front costs are high: transfer tax of 6% in Berlin, for instance, plus notary, register and sometimes agent. A gain on a resale is taxable within ten years of purchase unless you lived in the property yourself, so a short stay can be costly. A lender may judge a short work history harshly. Many newcomers rent for the first year or two, learn the market and then decide. Buying property in Germany is a long-term decision, so build in the cost of repairs and co-ownership charges.
How is property tax calculated?
The Grundsteuer is the municipal property tax: the value set by the tax office × a base figure × the municipality's own multiplier (Hebesatz). Municipalities set their rates themselves, so two identical flats can pay different amounts. Baden-Württemberg, Bavaria, Hamburg, Hesse and Lower Saxony use their own calculation models. Landlords may pass the tax on to the tenant through the service charges (see renting in Germany). Ask the seller for the latest bill before you commit.