Mortgage & Property in Germany

Yes. There are no restrictions on property ownership for foreigners in Germany, regardless of nationality or residency status. EU and non-EU citizens alike can purchase residential and commercial property. You do not need German citizenship or a permanent residence permit. However, getting a mortgage as a non-resident can be more challenging, and banks may require a higher down payment (30-40%) for applicants without a permanent German address or employment contract.

Beyond the purchase price, expect additional costs (Kaufnebenkosten) of approximately 7-12% of the property price. These include: Grunderwerbsteuer (property transfer tax, 3.5-6.5% depending on the state), Notar fees (approximately 1.5-2% for notarization and land registry), real estate agent commission (Maklergebuehr, typically 3.57% each for buyer and seller including VAT, though this varies), and land registry (Grundbuch) entry fees. Budget for these costs separately, as they are usually not covered by the mortgage.

The German mortgage process typically takes 4-8 weeks. First, get a financing commitment (Finanzierungszusage) from a bank or mortgage broker. Then find a property and make an offer. Once accepted, a Notar (notary public) drafts the purchase contract. Both parties sign at the notary office. The Notar registers the transfer in the Grundbuch (land registry), and the bank releases the mortgage funds. The Notar also ensures the Grunderwerbsteuer is paid. The entire transaction is legally binding only after notarization.

The Grundbuch is Germany's official land registry, maintained by the local Amtsgericht (district court). It records property ownership, size, rights of way, easements, and any mortgages (Grundschuld) on the property. Every property transaction must be entered into the Grundbuch to be legally valid. Before purchasing, always request a Grundbuch extract (Grundbuchauszug) to verify ownership, check for existing debts, and confirm there are no legal encumbrances on the property.

Mortgage brokers (Finanzierungsvermittler) like Interhyp, Dr. Klein, or Baufi24 compare offers from hundreds of banks and can often secure better rates than approaching a single bank. Their services are typically free for the buyer, as they receive a commission from the lending bank. For expats, brokers are especially valuable because they understand which banks are more open to financing foreign nationals and can navigate language barriers. However, your Hausbank (primary bank) may also offer competitive rates, especially if you have a long-standing relationship.