Guide · Foreign buyers

Buying property in Germany as a foreigner

What a non-German buyer needs in Germany: notarial deed, land register entry, state transfer tax of 3.5% to 6.5%, fees and the steps specific to non-residents.

Checked on against the official sources at the bottom of the page.

In short

A foreigner buys a home in Germany through the same procedure as anyone else: a notarial purchase deed, payment, and an entry in the land register (Grundbuch). In the statutes read for this guide, the requirements concern form and registration, not nationality or residence. The buyer pays the state-set real estate transfer tax (Grunderwerbsteuer) of 3.5% to 6.5% depending on the Land, plus notary and land registry fees. The usual practical hurdles for a non-resident are language, identification, the tax number and the payment trail, covered below.

Three rules of the Civil Code (BGB) shape every German property purchase. Under § 311b, a contract to transfer or acquire land needs notarial recording; a contract signed without it becomes valid only once the Auflassung (the formal agreement on the transfer of title) and the land register entry have taken place. Under § 925, the Auflassung must be declared by both sides present at the same time before a competent body, and any notary is competent to receive it. Under § 873, ownership passes only on the entry in the register, not on signature.

So there is no private sale of a flat or house by simple signature: the notary is part of the transaction, not an optional extra. Payotte does not rank or recommend notaries; you will usually deal with one office chosen for the transaction, with the buyer’s costs set by statute (see below).

Nationality, residence and the practical requirements

Nothing in § 311b, § 873 or § 925 BGB, or in the transfer tax act (GrEStG), asks the buyer to be German, to live in Germany or to hold a residence permit. I did not find an official page stating a general bar on purchases by foreigners; for a specific property (for instance agricultural land) or an unusual buyer such as a company, ask the notary what applies.

What a foreign buyer does need in practice:

  • Identification. The notary must identify every party before the transaction (anti-money-laundering law, § 11 GwG), so bring a valid passport or identity card.
  • A tax identifier. The notary reports the sale to the tax office, and the report asks for the tax identification number of seller and buyer (§ 20 GrEStG). See the guide on the tax ID for property buyers.
  • Language. If you do not speak German, the notary has to translate the deed to you; see notary deed in a foreign language.
  • Presence or representation. You can attend or be represented; see buying with a power of attorney.
  • A bank payment. Cash is not allowed as payment; see the cash payment ban.

The order of events

The notary should send the consumer buyer the draft text, and in the normal case two weeks before the signing (§ 17(2a) BeurkG); if the period is shorter, the reasons are noted in the deed. At the signing the deed is read out, approved and signed by hand (§ 13 BeurkG). The tax office then issues a tax notice; the tax falls due one month after the notice is served (§ 15 GrEStG). The buyer cannot be entered in the land register until the tax office confirms that there is no tax objection, which it issues once the tax is paid, secured, deferred or not due (§ 22 GrEStG). The notary files the application and the register entry completes the purchase. A priority notice (Auflassungsvormerkung) is normally entered in the meantime to protect the buyer; see priority notice.

What it costs

The transfer tax is the largest line and depends on where the property is. The federal default in § 11 GrEStG is 3.5%, and the states set their own rate. Two examples, calculated on a €400,000 home: in Bavaria, where the tax office states 3.5%, the tax is €14,000; in North Rhine-Westphalia, where the tax offices state 6.5%, it is €26,000. Other states fall between; use the transfer tax guide or the purchase costs calculator.

Notary and land registry fees follow the GNotKG schedule in force since 1 June 2025. Calculated on €400,000 (fee table line €785): deed 2.0 = €1,570, completion 0.5 = €392.50 and supervision 0.5 = €392.50, so €2,355 plus 19% VAT = €2,802.45 at the notary. The land registry charges a priority notice at 0.5 (€392.50) and the transfer of ownership at 1.0 (€785), €1,177.50 with no VAT. A mortgage land charge adds one fee at the notary and one at the registry. Agent commission is not set by law; see agent commission when buying.

Which professional to consult

The notary is the only mandatory professional. A real estate lawyer who speaks your language can read the draft with you before the signing; a mortgage broker can compare offers if you finance from Germany; a property valuer can give an independent opinion of the price. Payotte does not publish a licence register for agents: no public register exists for the trade under § 34c of the trade regulation code, so ask the person for the permit issued by the local authority.

Frequently asked questions

Can a non-resident buy a house in Germany?

The statutes read set no residence or nationality condition on the purchase itself. The notary will ask for identification and a tax number and will want to see the payment arranged through a bank.

Do I need a German bank account?

No rule read requires one, but the payment must not be in cash, and a bank confirmation of payment is the usual proof. Ask the notary how it wants the transfer evidenced.

Who pays the transfer tax?

The law makes both parties liable (§ 13 GrEStG), but the contract almost always places it on the buyer, and the deed names who bears it.

How long does a purchase take?

The law fixes only some periods: the two-week draft period, the one-month payment period after the tax notice. The rest depends on the offices involved.

Is the property mine when I sign?

No. Title passes on the land register entry (§ 873 BGB), after the tax clearance.

General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.

More guides on foreign buyers

Sources

All guides · Payotte Germany