Buying property in Germany can feel a bit like stepping into a well-run train station: lots of signs, clear tracks, and a pretty strict schedule. Once you know where to look, it’s surprisingly calm. This guide walks you through the real-world steps, the must-know costs, and the documents you’ll actually see—without drowning you in legal jargon.
At a glance
- Notary is mandatory for the purchase contract.
- Ownership changes via the land register (“Grundbuch”).
- Plan for one-off buying costs on top of the price.
- Expect a process measured in weeks, not days.
Who this is for
- First-time buyers who want a clear checklist.
- Expats who need the process in plain English.
- Anyone comparing existing homes vs. new builds.
Can foreigners buy property in Germany?
In most everyday cases, yes. Germany generally allows non-residents and non-citizens to buy apartments, houses, and land. The practical “gate” isn’t nationality—it’s usually financing, paperwork, and choosing the right professionals.
Good to know: Some property types (like certain agricultural land) can have extra rules. If your plan is a standard apartment or family home, the process is typically straightforward.
Pick your route: existing home or new build?
Existing property
- More choice in established neighborhoods.
- You can often move in sooner.
- Focus on condition, repairs, and building paperwork.
New build
- Modern standards, often lower maintenance early on.
- Timelines depend on construction progress.
- Read what’s included in the price (fixtures, kitchens, landscaping).
The Germany-specific “big thing”: the notary
Here’s the part that surprises many buyers: the purchase contract for real estate must be notarized. The notary doesn’t “work for one side” like a private lawyer might. Instead, the notary’s job is to run a legally secure process and make sure the contract is properly executed.
Think of the notary like the referee in a championship match—there to keep the rules clear and the game clean.
Step-by-step: how buying property in Germany usually works
So what does the journey look like in practice?
- Budget + realistic monthly comfort
Before you fall in love with a place, decide what you can handle each month (loan, utilities, building fees). Keep a buffer—homes love surprises. - Property search + viewings
Listings often include key details like size, “Hausgeld” (monthly building costs for many apartments), and an energy rating. Save the best listings and compare apples to apples. - Financing pre-check
Banks may ask for income proof, residency documents, and an overview of your assets. If you’re self-employed or new in Germany, expect extra questions. That’s normal. - Offer / reservation (if used)
Some transactions involve a short written agreement or reservation. Don’t treat it like a final contract. In Germany, the binding deal is the notarized contract. - Notary drafts the contract
The notary prepares a draft based on details from buyer and seller. Read it calmly, highlight questions, and ask for clarifications. It’s worth double-checking teh numbers, names, and what’s included (furniture, parking spot, cellar, kitchen). - Notary appointment + signing
The contract is read and explained. Once signed, the process moves into execution mode: land register steps, payment instructions, and required clearances. - Priority notice in the land register
A key protection is typically placed in the land register to reserve your claim to ownership while final steps happen. - Pay purchase price + taxes + fees
You’ll receive official payment instructions and deadlines. When requirements are met, you pay the purchase price and related costs. - Ownership registration
After the conditions are satisfied, you’re entered as the new owner in the land register. That’s the legal finish line. - Handover of keys
Often tied to payment and agreed dates. Handover includes meter readings and a written handover protocol.
What does it cost to buy? Typical one-off “extra” costs
In Germany, the purchase price is only part of your total budget. Buyers usually pay several transaction costs that are separate from the price of the property.
| Cost item | Typical range | What it’s for |
|---|---|---|
| Property transfer tax (Grunderwerbsteuer) | About 3.5%–6.5% (varies by state) | Tax triggered by the purchase of real estate. |
| Notary fees | Roughly 1.0%–1.5% | Drafting, notarizing, and managing parts of the transaction. |
| Land register / court fees | Often around 0.5% (approx.) | Registration steps in the land register. |
| Agent commission (if applicable) | Commonly a few percent + VAT | Paid when a broker is involved; residential rules often split costs between parties. |
| Financing setup (if applicable) | Varies | Bank-related items like land charge registration and certain admin steps. |
Mini tip: When you run your budget, treat these costs as “must-pay.” That way you won’t have to squeeze them out of your renovation or furniture money later.
Financing basics (without the headache)
German mortgages can be very structured. Banks want to see stability and clarity: income, existing debts, and your ability to cover monthly payments even if life gets a little bumpy.
- Equity matters. Many buyers bring their own funds for part of the price and for transaction costs.
- Fixed interest periods are common. Buyers often choose a fixed-rate period that matches their comfort level.
- Expect paperwork. Payslips, contracts, tax documents, and bank statements are standard.
- Credit history can matter. If you’re new to Germany, a bank may ask for more context or extra documents.
If you’re buying from abroad, it’s smart to ask a bank (or mortgage broker) early: What would you need from me to approve financing? Getting that list upfront saves a lot of back-and-forth later.
What to check before you sign anything
You don’t need to become a property inspector overnight. Just focus on a few high-impact checks that protect your budget and your peace of mind.
Property & building
- Energy Performance Certificate (“Energieausweis”) and the building’s energy data.
- Recent renovations (roof, heating, windows) and any planned work.
- Noise, light, and daily comfort—visit at different times if you can.
If it’s an apartment
- Hausgeld (monthly building fee) and what it covers.
- Reserve fund for future repairs (“Instandhaltungsrücklage”).
- Minutes from owners’ meetings and any planned building projects.
And yes—ask what’s included in the purchase. Parking space? Basement storage? Built-in kitchen? In Germany, details are often very precise, and that’s a good thing.
Timeline: how long does it take?
Timelines vary by region, property type, and how quickly documents are gathered. A simple way to picture it is three phases:
- Decision phase (viewings, financing prep, contract draft review).
- Notary + execution (priority notice, approvals, payment instructions).
- Registration + handover (ownership entry, keys, utilities transfer).
Handover day checklist
- Write down meter readings (electricity, water, heating if accessible).
- Collect all keys (mailbox, cellar, garage, common areas).
- Take quick photos of the property condition for your records.
- Confirm any items included in the sale (appliances, fixtures).
Ongoing costs after you buy
Once you own the place, your monthly or yearly costs typically include:
- Utilities (electricity, heating, water, waste).
- Property tax (“Grundsteuer”), usually paid to the municipality.
- Building insurance (for houses) or your share via the building (for many apartments).
- Maintenance (set aside a monthly amount even if nothing breaks this year).
- Hausgeld (for apartments/condos), covering shared costs and reserves.
If you’re the kind of person who likes clarity, you’ll enjoy Germany’s habit of putting many of these costs into tidy statements. Keep them in one folder, and you’ll always know where you stand.
Glossary: key German terms you’ll run into
- Grundbuch – land register where ownership and certain rights are recorded.
- Notar – notary who notarizes the purchase contract and coordinates key steps.
- Kaufvertrag – purchase contract (the notarized version is the binding one).
- Grunderwerbsteuer – property transfer tax (varies by federal state).
- Auflassungsvormerkung – priority notice securing your claim to ownership during the process.
- Hausgeld – monthly condo/building fee (common for apartments).
- Energieausweis – energy performance certificate for the building.
FAQ
Do I need a German bank account?
It’s often very practical to have one, especially for paying recurring bills. For the purchase itself, what matters is that payments are made correctly and on time, following the official instructions you receive.
Is the asking price negotiable?
Sometimes. It depends on location, condition, and demand. A good approach is to negotiate based on facts: property condition, modernization needs, and comparable listings—not guesswork.
What if I don’t speak German well?
If you’re not confident in German, bring a translator or ask about language support early. The goal is simple: you should fully understand what you’re signing and what the contract says.
Do I get the keys on the signing day?
Not always. Signing is a milestone, but the handover is typically tied to payment and the agreed contract timeline.
Quick recap (save this)
- Budget for the price and the one-off costs.
- Read the draft contract slowly and ask questions early.
- Notary + land register steps are the backbone of the process.
- Keep paperwork organized from day one—it pays off.
Sources
- German Civil Code (BGB) – Section 311b (notarization requirement)
- German Civil Code (BGB) – Section 656c (broker commission rules for residential purchases)
- German Civil Code (BGB) – Section 656d (broker commission agreements)
- Federal portal (Germany) – Paying property transfer tax (Grunderwerbsteuer)
- Federal Ministry of Finance – Property tax & property transfer tax overview
- Tax administration (NRW) – Grunderwerbsteuer FAQ-style guidance
- GEG Infoportal (Germany) – Energy certificate templates and official guidance
- Federal Chamber of Notaries – Info sheet on buying an existing property (PDF)
- European e-Justice Portal – Overview of Germany’s land register
