Buying property in Germany

Who can buy in Germany

There are no restrictions on who can buy a home in Germany, whether you’re from an EU or a non-EU country.

However, for non-residents, you’ll need a larger deposit of at least 30% to secure a mortgage.

The buying process in Germany

The buying process in Germany is straightforward and has clear regulations.

• Once you’ve chosen the property you wish to purchase, put in a formal offer.
• A notary will then draft the purchase contract and ensure both parties understand the terms.
• Once you’ve reviewed the contract, you and the seller will sign it in front of a notary, who’ll register the sale once the process is complete.
• You don’t need to use a lawyer, but it’s recommended in some circumstances.
• Four weeks after the sale is registered, the buyer pays the property sales tax.

Fees and taxes in Germany

Buyers can expect to pay roughly 10% of the purchase price on costs and fees to buy a property, rising to 15% in Berlin.

• The property transfer tax, also known as the ‘grunderwerbsteuer’, ranges between 3.5% and 6.5% depending on the state you’re in.
• Both the buyer and seller contribute to the estate agent’s commission, which is typically 3% for each party, plus VAT at a rate of 19%.
• Notary fees are up to 1.5%, and registration fees are roughly 1%.
• When selling a property, capital gains tax is 25% if the property has been owned for less than 10 years, but it becomes tax-free after 10 years.
• The property can also be exempt from capital gains tax if it has been your primary residence for more than two years.