Germany

Yes, Germany has no restrictions on property ownership for foreigners. Both EU and non-EU nationals can purchase property in Germany without needing special permissions or residency. Foreign buyers enjoy the same legal protections and rights as German nationals when purchasing real estate.

In addition to the purchase price, buyers need to account for several additional costs, including:

• Property Transfer Tax (3.5% to 6.5% of the purchase price, depending on the state).
• Notary Fees (around 1.0% to 1.5% of the purchase price).
• Registration Fees (approximately 0.5% of the purchase price).
• GMC Advisory Fees (3% of the purchase price, including VAT).

*These costs typically add up to 7%–10% of the property value.

When purchasing real estate in Germany, foreigners are subject to the same taxes as German nationals, including:

• Property Transfer Tax (3.5% to 6.5% depending on the region).
• Annual Property Tax (calculated based on the property value and municipal tax rate).
• Capital Gains Tax if the property is sold within 10 years, unless it’s your primary residence.

*You can find more about the taxes related to investing into a property in Germany from our blog.

The key legal steps in purchasing property in Germany are:

• Signing the purchase contract: This must be done in front of a notary, who ensures the legality of the transaction.
• Paying the purchase price and associated taxes/fees.
• Registering the property: The notary will submit the purchase agreement to the land registry (Grundbuch) to formally transfer ownership to the buyer.

As a foreign buyer, you will generally need the following documents:

• A valid passport or ID.
• Proof of financing or a mortgage agreement (if applicable).
• Bank account details for the transaction.
• Any required visas or residence permits (if applicable).

*Additional documents may be required depending on the nature of the transaction and your residency status.