Buying property in Germany as a foreigner: the complete guide

Buying property in Germany as a foreigner is entirely legal, and there are no nationality-based restrictions standing in your way. The real challenge is learning a system that runs in German, requires a notary for every transaction, and comes with closing costs that many first-time buyers don't expect. This guide walks you through the full property purchase process in Germany, from legal basics and financing to what actually happens in the notary's office. It's written for EU and non-EU citizens alike, whether you're buying a house in Germany as an expat already living here or purchasing from abroad.

You'll find a step-by-step breakdown of the purchase process, a worked cost example with real numbers, a clear table of tax rates by federal state, practical guidance on the language barrier that most other guides ignore, and sections on ongoing ownership costs, taxes on rental income, what happens when you sell, and whether buying real estate in Germany is actually worth it compared to renting. If you're seriously considering a property purchase in Germany, this is the article to bookmark.

Can foreigners buy property in Germany?

Yes. Any foreign national can buy property in Germany. There are no restrictions based on citizenship, residency status, or country of origin. German property law treats all buyers equally, whether you hold an EU passport, a non-EU residence permit, or no German visa at all.

The practical differences between buyers are financial, not legal. EU citizens generally have easier access to German mortgages. Non-EU citizens may face stricter lending criteria. But the right to buy and own property is the same for everyone.

One common misconception deserves a direct answer: buying property in Germany does not give you a residence permit or a path to citizenship. Germany has no "golden visa" programme tied to real estate. Property ownership gives you an asset, potential rental income, and a base in the country, but it has no bearing on your immigration status.

Is it hard for foreigners to buy property in Germany?

Legally, it's straightforward. There are no extra permits, no foreign-buyer surcharges, and no approval processes specific to non-Germans. The difficulty is practical: the entire process runs in German, financing can be harder to secure if you lack a German credit history, and closing costs are higher than in many other countries.

If you have a stable income, enough savings for a deposit plus closing costs, and either speak German or work with good advisers who do, buying property in Germany is very manageable. The steps are predictable and well-regulated. Most of the complexity comes from paperwork and banking requirements rather than legal barriers.

EU citizens

If you hold a passport from an EU or EEA member state, you enjoy the same property rights as German nationals. Freedom of movement means you don't need a residence permit to buy. You can purchase a home whether you live in Germany, plan to move there, or simply want to invest.

Financing is also more straightforward. German banks are generally willing to lend to EU citizens, especially if you have German income or an established credit history in Germany. If you're employed in Germany and have been in your job for at least six months, you'll find the mortgage process broadly similar to what a German buyer would experience.

Non-EU citizens

Non-EU citizens have the same legal right to buy property in Germany. No law prevents it. The hurdles are practical, and they centre on financing.

German banks tend to be more cautious with non-EU applicants. If you don't hold a permanent residence permit (Niederlassungserlaubnis), many mainstream lenders will either decline your application or require a significantly larger deposit. Without a German credit history, you won't have a Schufa score. The Schufa is Germany's credit reference system, and most banks check it as a standard part of any loan application. If you've never had a German bank account, phone contract, or loan, your Schufa file is essentially blank.

If you're new to Germany and wondering how to build a Schufa history: open a German bank account, sign up for a mobile phone contract in your name, and pay all bills on time. It takes roughly six to twelve months before your file reflects enough activity for banks to evaluate. In the meantime, you can request a Schufa self-disclosure (Schufa-Selbstauskunft) to check what's on file and make sure no negative entries have been incorrectly recorded.

Getting financing without a Schufa history isn't impossible. You'll need to provide alternative proof of creditworthiness: credit reports from your home country, bank statements, proof of assets, and detailed income documentation. Some mortgage brokers specialise in non-resident and non-EU buyers and know which lenders are willing to work with international profiles. Expect to bring a larger deposit to the table, often 30–40% of the purchase price.

Does buying property give you residency or citizenship?

No. Property ownership in Germany has no connection to immigration law. You cannot obtain a visa, a residence permit, or citizenship by purchasing a house or apartment.

Some countries do offer residency-by-investment programmes tied to real estate purchases, which is likely why so many buyers ask. Germany isn't one of them. What property ownership does give you is a tangible asset in one of Europe's most stable economies, the option to generate rental income, and a physical base if you do obtain residency through other channels (employment, family reunification, or a freelancer visa, for example).

Is buying property in Germany worth it?

Germany has one of the lowest homeownership rates in western Europe, at roughly 50%. That number often surprises buyers from countries where owning is the default. It doesn't mean buying is a bad idea. It means the rental market is well-regulated and competitive, so the financial case for buying depends on your situation.

Buying vs. renting

Renting in Germany is tenant-friendly. Leases are typically open-ended, rent increases are capped in many cities, and landlords can't easily terminate a contract. That security is why many Germans rent for decades without feeling financially disadvantaged.

Buying makes more sense when you plan to stay in one place for at least seven to ten years. Over shorter periods, the high closing costs eat into any equity you build. Over longer periods, those upfront costs get amortised and you benefit from paying down your mortgage instead of paying someone else's.

How high are those closing costs? They typically run between 10% and 15% of the purchase price. Where you land in that range depends mainly on two things: the Grunderwerbsteuer rate in your federal state (ranging from 3.5% in Bavaria and Saxony up to 6.5% in Brandenburg, Schleswig-Holstein, North Rhine-Westphalia, and Saarland) and whether a Makler (estate agent) is involved. Buy without an agent in a low-tax state and you're closer to 10%. Buy through an agent in a high-tax state and you're at 14–15%.

A few factors that tilt the calculation toward buying:

• You have stable income and enough savings for a 20%+ deposit plus closing costs.
• You're in a city where rents are high relative to purchase prices, meaning your monthly mortgage payment is comparable to rent for a similar property.
• You want the security of a fixed-rate mortgage (common in Germany for 10–15 year terms) rather than exposure to rent increases.
• You plan to hold the property long-term, benefiting from the capital gains tax exemption after ten years of ownership (explained in the section on selling below).

A few factors that favour continuing to rent:

• You might relocate within a few years.
• You don't have enough Eigenkapital (equity) and would need to finance more than 80–90% of the purchase price, which leads to significantly higher interest costs.
• You're in a city where purchase prices are very high relative to rents (Munich is a common example).

There's no universal right answer. Running the numbers for your specific city and income is the only way to decide. Our guide to real estate financing in Germany can help you model the monthly costs.

Long-term price trends

German property prices rose substantially between 2010 and 2022, then corrected during 2022–2023 as interest rates increased. Since then, prices in major cities have broadly stabilised, with some markets showing renewed growth.

Historically, German real estate has been a stable, inflation-hedging asset rather than a vehicle for rapid gains. If you're buying to live in, the price trend matters less than your ability to service the mortgage comfortably. If you're buying as an investment, consider both the rental yield and the long-term appreciation potential of the specific location.

Property prices in major German cities

Prices vary enormously across Germany. As a rough orientation, here are approximate price ranges for existing apartments in selected cities. These are average asking prices per square metre and will vary by neighbourhood, condition, and building age.

City	Approximate price per m² (existing apartments)
Munich	€7,500–€10,000+
Frankfurt	€4,500–€6,500
Hamburg	€4,500–€6,500
Berlin	€4,000–€6,000
Düsseldorf	€3,500–€5,000
Stuttgart	€4,000–€5,500
Cologne	€3,000–€4,500
Leipzig	€2,000–€3,000
Dortmund	€1,800–€2,500
Dresden	€2,000–€3,000

For orientation only. Figures reflect approximate market conditions as of mid-2026 and can shift quickly. Check current listings for your target neighbourhood.

For foreign buyers watching their budget, cities like Leipzig, Dresden, and Dortmund offer significantly lower entry prices than Munich or Frankfurt. Rental yields in these cities also tend to be higher in percentage terms, though the absolute rental income is lower.

If you want a detailed breakdown of prices in your target city, see our guide to property prices in Germany.

What does buying property in Germany actually cost?

The purchase price is only part of what you'll pay. On top of it come Nebenkosten (additional purchase costs, often called "closing costs" in English). In Germany, these typically add 10–15% to the purchase price. That range surprises many buyers coming from markets where closing costs are lower.

The four main cost components are property transfer tax, notary fees, land registry fees, and estate agent commission. Some of these vary by region, and one of them you can potentially avoid entirely. Let's go through each, using a €400,000 apartment in Frankfurt as a running example.

For your individual tax situation, consult a Steuerberater (tax adviser). The figures below are general guidance, not personal tax advice.

Grunderwerbsteuer (property transfer tax)

Grunderwerbsteuer is a one-off tax you pay as the buyer, calculated on the purchase price. It's non-negotiable and due within a few weeks of signing the contract at the notary.

The rate varies by Bundesland (federal state), and the difference between the cheapest and most expensive states is nearly double.

Bundesland (federal state)	Grunderwerbsteuer rate
Baden-Württemberg	5.0%
Bavaria	3.5%
Berlin	6.0%
Brandenburg	6.5%
Bremen	5.0%
Hamburg	5.5%
Hesse	6.0%
Lower Saxony	5.0%
Mecklenburg-Western Pomerania	6.0%
North Rhine-Westphalia	6.5%
Rhineland-Palatinate	5.0%
Saarland	6.5%
Saxony	3.5%
Saxony-Anhalt	5.0%
Schleswig-Holstein	6.5%
Thuringia	5.0%

Rates as of August 2026. Check current rates for your state, as they can change through state legislation.

In our worked example: a €400,000 apartment in Frankfurt (Hesse, 6%) means €24,000 in property transfer tax alone.

For a full breakdown of how this tax works and what you pay in your state, see our Grunderwerbsteuer guide.

Notary and land registry fees

In Germany, every property purchase must go through a Notar (notary). This is not optional and not comparable to a notary public in anglophone countries. The German Notar is a state-appointed, legally neutral official who drafts the Kaufvertrag (purchase contract), reads it aloud to both parties, and certifies the transaction.

Notary fees are regulated by law (the GNotKG, the Gerichts- und Notarkostengesetz), so they don't vary by individual notary. They're based on the purchase price and typically come to around 1.0–1.5% of the purchase price.

The Grundbucheintragung (land registry entry) costs roughly 0.5% of the purchase price on top. The Grundbuch (land register) is the official record of who owns a property and what encumbrances (mortgages, rights of way) are registered against it. Your ownership only becomes legally effective once this entry is made.

In our worked example: notary fees of roughly €6,000 (1.5%) plus land registry fees of roughly €2,000 (0.5%) come to approximately €8,000 combined.

For more detail on what the notary does and what you pay, see our notary costs guide.

Makler fees (estate agent commission)

If the property is sold through a Makler (estate agent), you'll share the commission with the seller. Since a law change in December 2020, the Maklerprovision (estate agent commission) must be split equally between buyer and seller when the seller hired the agent. This ended the old practice in some states where the buyer paid the full commission alone.

The total commission is typically 5.95–7.14% of the purchase price including VAT (Mehrwertsteuer), so the buyer's share is roughly 2.98–3.57%.

Not all properties involve a Makler. Some sellers list their property privately (ohne Makler), and in those cases you don't pay any agent commission. If you're watching your budget closely, filtering for "provisionsfrei" (commission-free) listings on property portals can save a significant amount.

In our worked example: the buyer's share of the Makler commission on a €400,000 apartment is approximately €12,000–14,000.

A worked example: what a €400,000 apartment really costs

Let's consolidate everything for a €400,000 apartment in Frankfurt (Hesse).

Cost item	Rate	Amount
Purchase price	—	€400,000
Grunderwerbsteuer (Hesse)	6.0%	€24,000
Notary fees	~1.5%	~€6,000
Land registry (Grundbucheintragung)	~0.5%	~€2,000
Makler commission (buyer's share)	~3.57%	~€14,280
Total cost		~€446,280

The Nebenkosten in this example add up to roughly €46,000, or about 11.5% of the purchase price.

How much Eigenkapital (equity or down payment) do you actually need? Most German banks won't finance the Nebenkosten. They lend against the property value, not the total transaction cost. A standard loan-to-value ratio is 80%, meaning you need at least 20% of the purchase price as a deposit, plus the full closing costs from your own funds.

For this €400,000 apartment:

• 20% deposit: €80,000
• Nebenkosten: ~€46,000
• Minimum own funds: ~€126,000

If you're a non-resident or have foreign income, banks may ask for 30–40% deposit, pushing the required savings to €166,000–206,000 or more.

This is why working out your budget before you start searching is so important.

Step by step: the property purchase process in Germany for foreign buyers

The property purchase process in Germany follows a clear sequence. From first search to final Grundbuch entry, it typically takes three to six months. The steps below cover what happens at each stage, with particular attention to the parts that work differently from what you might expect.

How long does the purchase process take?

A straightforward purchase with quick mortgage approval can close in under three months. Complex cases with foreign documentation or multiple lenders can stretch to six months or longer.

A rough timeline:

• Weeks 1–4: budget planning, mortgage pre-approval, property search
• Weeks 4–8: viewings, offer, mortgage finalisation
• Weeks 8–10: notary appointment and contract signing
• Weeks 10–20: payments, tax, and waiting for the Grundbuch entry

Step 1: work out what you can afford

Before you start browsing listings, get a realistic picture of your budget. That means two things: knowing how much Eigenkapital you have available, and getting a rough idea of how much a bank will lend you.

Start by adding up your liquid savings. Remember that you need to cover both the deposit and the full Nebenkosten from your own funds. Use the cost breakdown above to estimate the closing costs for your target state.

Example calculation for estimating your borrowing capacity: German banks typically cap your total monthly housing costs (mortgage payment plus non-recoverable running costs) at around 35% of your net monthly income. If your household brings home €5,000 net per month, the bank will likely allow roughly €1,750 per month for your loan repayment. At a 3.5% interest rate and a 2% anfängliche Tilgung (initial repayment rate, meaning 2% of the original loan balance is paid off in the first year, with the repayment portion growing over time as the interest portion shrinks), that would support a loan of roughly €380,000. This is a simplification. Banks factor in existing debts, the property's value, and your overall financial profile. But it gives you a starting point before you talk to a lender.

Then talk to a bank or mortgage broker to get a preliminary financing estimate. Some sellers, especially in competitive markets like Munich or Berlin, will ask for a Finanzierungsbestätigung (financing confirmation letter) before they take your offer seriously. This is a written statement from a bank confirming, in principle, how much they're prepared to lend you. It's not a binding loan offer, but it shows the seller you're a credible buyer.

Our guide to real estate financing in Germany explains the mortgage process in full, including what documentation you'll need.

Step 2: search for the right property

The main property portals in Germany are ImmobilienScout24, Immowelt, and Kleinanzeigen (formerly eBay Kleinanzeigen). Most listings are in German, though ImmobilienScout24 has partial English functionality. You can also work with a Makler (estate agent) who can filter and present properties that match your criteria.

Competition for good apartments in Berlin, Munich, Hamburg, and Frankfurt is high. A few practical tips:

• Respond quickly. Desirable properties get dozens of enquiries within hours.
• Have your documents ready. A Schufa report, proof of income, and a Finanzierungsbestätigung make you a more attractive buyer.
• Write a short personal introduction. Many German sellers want to know who they're selling to. A brief, friendly email explaining your situation goes further than a generic portal message.
• Don't overlook smaller cities. If you're buying as an investment, cities like Leipzig, Dresden, or Dortmund offer lower entry prices and often higher rental yields than the big four.

Before you go to a viewing, use our home viewing checklist to know what to look for, from structural issues to legal red flags like outstanding charges in the Grundbuch.

Step 3: make an offer and agree terms

Once you've found the right property, you make an offer. In Germany, this offer (whether verbal or by email) is not legally binding. The only binding moment is the signature at the notary. Until then, either party can walk away without penalty.

What happens at this stage is essentially a negotiation. You and the seller agree on:

• The purchase price
• Any fixtures or fittings included in the sale (kitchen, built-in wardrobes, etc.)
• A rough target date for the notary appointment
• Any special conditions (e.g. the seller stays as a tenant for a set period)

Once both sides agree, the Notar is instructed to prepare the Kaufvertrag (purchase contract). The Notar can be chosen by either party, though the buyer typically selects and pays for them.

Step 4: secure your mortgage

With an accepted offer, you can now finalise your mortgage application. The bank will want to see the specific property details, including the purchase price, the Grundbuchauszug (land register extract), and floor plans.

German mortgage approval typically takes two to six weeks, depending on the complexity of your application. If you have foreign income, are self-employed, or don't have a German Schufa history, the process may take longer because the bank needs to verify additional documentation.

This is where a Hypothekenmakler (mortgage broker) can be particularly valuable. Brokers compare offers from multiple lenders and know which banks accept non-resident, non-EU, or foreign-income applicants. In Germany, the broker's fee is typically paid by the lending bank, not by you, so using a broker usually costs you nothing extra.

Step 5: the notary appointment (Notartermin)

This is the step that makes many foreign buyers most nervous. Knowing what to expect takes most of the anxiety out of it.

The Notartermin is the formal appointment where you and the seller sign the Kaufvertrag in the presence of the Notar. It takes place in the Notar's office. Both parties attend, sometimes along with the Makler or bank representatives. The appointment usually lasts 60–90 minutes.

What happens in the room: the Notar reads the entire Kaufvertrag aloud, from beginning to end, in German. This is a legal requirement (Verlesungspflicht). The Notar reads the contract to make sure both parties understand and agree to every clause. You can interrupt at any point to ask questions. The Notar is neutral, working for neither side, and is legally obligated to explain the contract's contents to both buyer and seller.

The language barrier, addressed directly. If you don't speak German well enough to follow a legal contract being read aloud (and most non-native speakers don't, even if their everyday German is good), you're legally entitled to bring a certified interpreter (beeidigter Dolmetscher) to the appointment. The Notar cannot sign the contract if there's any doubt that you understand what you're agreeing to. Some notaries insist on an interpreter for non-German-speaking buyers. You arrange and pay for the interpreter yourself. Expect to pay roughly €200–500 for the session, depending on the interpreter and the length of the appointment. Factor this into your budget alongside the other closing costs.

You can also ask the Notar's office for the draft Kaufvertrag in advance, usually two weeks before the appointment. This gives you time to have it reviewed or translated, so you're not hearing the terms for the first time in the room.

What to check in the Kaufvertrag

Before you sign, make sure you've reviewed these key points in the purchase contract, ideally with a translator or bilingual adviser:

• Purchase price and payment terms: when and how you need to transfer the funds
• Description of the property: does it match what you viewed? Check the Grundbuch references, plot number (Flurstücknummer), and size
• Encumbrances and easements: are there existing mortgages, rights of way (Wegerecht), or other charges registered against the property?
• Handover date (Übergabetermin): when do you get the keys? This is often separate from the legal ownership transfer
• Condition of the property: German purchase contracts typically state that the property is sold "as seen" (wie besichtigt). There's usually no warranty on defects you could have spotted during a viewing
• Fixtures included in the price: if a kitchen, fitted wardrobes, or other items are included, they should be listed explicitly, ideally with a separate value (this can slightly reduce the Grunderwerbsteuer basis)
• Penalties or conditions: are there contractual penalties for late payment? Are there any conditions precedent (aufschiebende Bedingungen), such as the mortgage being confirmed?

If anything is unclear, ask the Notar to explain it during the appointment. That's their job.

After signing, the Notar registers an Auflassungsvormerkung (priority notice of conveyance) in the Grundbuch. This is an important protection for you as the buyer. It tells the world that a transfer is in progress and prevents the seller from selling the same property to someone else, or placing new charges on it, while the full transfer is being processed.

Step 6: pay, and wait for the Grundbuch entry

After signing, the Notar prepares the Fälligkeitsmitteilung (payment instruction). This letter tells you exactly when and where to transfer the purchase price. You typically have two to four weeks to pay.

At this stage, several payments come due in close succession:

• The purchase price (transferred to the seller or a notary escrow account)
• The Grunderwerbsteuer (the tax office sends you a Steuerbescheid, a tax assessment notice, directly)
• The notary and land registry fees

Once the Notar confirms that all payments have been made and all preconditions are met, they apply for the final Grundbucheintragung (land registry entry). This is the moment you legally become the owner. Not when you signed. Not when you paid. When the Grundbuch is updated.

The period from signing to final Grundbuch entry typically takes four to twelve weeks. During this time, the Auflassungsvormerkung protects your claim to the property. You may receive the keys and move in before the Grundbuch is updated, depending on what the contract specifies, but legal ownership transfers only with the registry entry.

Ongoing costs after the purchase

The Nebenkosten get all the attention, but your costs don't stop once you own the property. As a homeowner in Germany, you'll pay several recurring costs that you should factor into your budget from the start.

Grundsteuer (annual property tax)

Don't confuse this with Grunderwerbsteuer (the one-off transfer tax). Grundsteuer is an annual property tax charged by your local municipality. The amount depends on the assessed value of the property, the municipal tax rate (Hebesatz), and the type of property. Following Germany's Grundsteuer reform, new assessed values are being phased in across the country.

As a rough guide, expect to pay somewhere between €200 and €800 per year for a typical apartment, though this varies widely. Your local Finanzamt (tax office) will send you the assessment.

Hausgeld (monthly charges for apartment owners)

If you're buying an Eigentumswohnung (condominium apartment), you'll pay a monthly Hausgeld to the Wohnungseigentümergemeinschaft (WEG), the owners' association that manages the building. The Hausgeld covers shared costs like building insurance, cleaning, maintenance of common areas, the building manager (Hausverwaltung), and a reserve fund for future repairs (Instandhaltungsrücklage).

Hausgeld typically ranges from €2.50 to €4.50 per square metre per month. For a 90 m² apartment, that's roughly €225–€405 per month. Part of this (the Instandhaltungsrücklage portion) is not recoverable from tenants if you rent the apartment out.

Before you buy, ask to see the Wirtschaftsplan (annual budget plan) and the minutes of recent WEG meetings (Protokolle der Eigentümerversammlungen). These documents reveal whether the building is well maintained and whether any major expenses (roof repair, facade renovation) are planned.

Building insurance, utilities, and maintenance

As an owner, you're responsible for building insurance (Wohngebäudeversicherung), which is usually arranged collectively through the WEG for apartments, or individually for houses. You'll also pay for utilities (heating, water, electricity) and should budget for routine maintenance.

A common rule of thumb for maintenance reserves on a house: set aside roughly €1 per square metre per month, more for older buildings.

Renting out your property as a foreign owner

Many foreign buyers purchase property in Germany as an investment. Whether you live in Germany or abroad, you're allowed to rent out your property. There are a few things to know about the practicalities and the tax treatment.

The basics of renting out

German tenancy law (Mietrecht) is strongly tenant-protective. Leases for residential property are typically open-ended, and terminating a tenancy requires a legally recognised reason (personal use, major renovation, or serious breach of contract by the tenant). Rent increases for existing tenancies are capped by the local Mietspiegel (rent index) and can only be raised within certain limits.

If you're buying to let, factor in the Hausgeld (of which the Instandhaltungsrücklage portion can't be passed on to tenants), vacancies between tenants, and ongoing maintenance. Net rental yields in Germany typically range from about 3% to 5% of the purchase price, with higher yields in lower-cost cities like Leipzig, Dortmund, or Dresden, and lower yields in expensive markets like Munich.

Many foreign landlords hire a Hausverwaltung (property management company) to handle tenant relations, rent collection, and maintenance. This costs roughly 5–8% of the monthly rent (excluding VAT) and is tax-deductible.

Taxes on rental income

Rental income from German property is taxable in Germany, regardless of where you live. If you're a tax resident in Germany (registered and living here), rental income is added to your other income and taxed at your personal income tax rate, which ranges from 14% to 45% depending on your total taxable income.

If you're a non-resident, you're subject to beschränkte Steuerpflicht (limited tax liability) in Germany. That means Germany taxes your German-source income, including rent, but only that. You'll file a German tax return (or your Steuerberater will do it for you) declaring the rental income and claiming allowable deductions: mortgage interest, depreciation (typically 2% of the building value per year for buildings built after 1924, or 2.5% for older buildings), property management fees, maintenance costs, and Grundsteuer.

If your home country also taxes worldwide income, you'll likely be protected by a Doppelbesteuerungsabkommen (double taxation agreement, or DTA). Germany has DTAs with most major countries. Under these agreements, rental income from German property is generally taxed in Germany first, and your home country gives you a credit or exemption to avoid paying tax on the same income twice. The details depend on the specific treaty, so check with a tax adviser who knows both jurisdictions.

A Steuerberater experienced with international clients is a worthwhile investment if you're renting out German property from abroad.

Selling later: the ten-year rule (Spekulationssteuer)

If you sell a property in Germany within ten years of buying it, the profit is subject to Spekulationssteuer (speculation tax). This is taxed at your personal income tax rate and can be substantial.

If you hold the property for more than ten years before selling, the capital gain is completely tax-free. This applies to investment properties that you've rented out. For properties you've used as your own home, the rule is slightly more generous: if you lived in the property during the year of sale and the two preceding calendar years, the gain is tax-free even if you've owned it for less than ten years.

Example: you buy an apartment in 2026 for €300,000 and sell it in 2035 for €380,000. You've owned it for nine years, so the €80,000 gain is taxable. If you wait until 2037 (more than ten years), the same gain is tax-free.

The ten-year holding period is one reason many German property investors buy with a long-term perspective. If you're buying property in Germany as a foreigner with the idea of selling later, keep this rule firmly in mind.

Documents you need as a foreign buyer

Gathering the right documents is one of the most practical hurdles for foreign buyers. What you need depends on your employment status and where you live. Documents issued outside Germany may need to be translated by a vereidigter Übersetzer (certified translator) and, in some cases, apostilled (certified for international legal use).

Plan ahead. Getting certified translations and apostilles can take weeks, and missing documents are one of the most common reasons for delays.

If you're employed

If you're employed in Germany or abroad, the standard documentation for a mortgage application includes:

• Valid passport or national ID card
• Last three payslips (Gehaltsabrechnungen)
• Last one to two years' income tax returns (Einkommensteuerbescheid)
• Bank statements for the last three to six months
• Current employment contract (Arbeitsvertrag)
• Schufa report (if you have a German credit history) or credit report from your home country
• Proof of Eigenkapital (savings, investments, or other assets)

If your payslips and tax returns are not in German, most banks will accept certified German translations.

If you're self-employed

Self-employed buyers face more scrutiny from German banks. The income is considered less predictable, so lenders want more documentation and more history.

In addition to the items above, you'll typically need:

• Last two to three years' tax returns (Einkommensteuerbescheid), with each year assessed separately
• Current BWA (Betriebswirtschaftliche Auswertung), a business financial summary usually prepared by your accountant
• Annual financial statements (Jahresabschluss) for the last two to three years
• Gewerbeschein (business registration certificate), if applicable
•