Buying a property

Buying property in Germany is a significant decision that should not be taken lightly.¹ Unlike the more fluid property markets in the US and UK, homeownership is less common in Germany, and purchasing property is often viewed as a once-in-a-lifetime event.¹ The practices of renovating, selling for profit, and "moving up the property ladder," which are common wealth-building strategies in other countries, are less viable in Germany due to the slower pace of the market.¹ On the positive side, property prices tend to be stable and consistently increase, avoiding the volatile bubbles seen in faster-moving markets.²

This slower turnover is supported by financial disincentives, including high transaction fees and taxes. Selling a property quickly in Germany incurs a financial penalty, as capital gains tax must be paid on properties owned for less than ten years.² Combined with transaction fees ranging from 7–12% of the purchase price, potential buyers should carefully consider their decision.² Expats who are not committed to staying in Germany for ten years or more should consider renting.¹ There are no restrictions on foreigners buying property in Germany; you don't need to be a citizen or even a resident to purchase property.¹ This allows expats to leave the country, rent out their property, and wait for the ten-year period to expire without incurring financial losses.¹

If you decide to purchase a home:

• Clarify estate agent fees: Determine who is responsible for paying the estate agent fees upfront. These fees typically range from 3–7% and are commonly paid by the seller, but this is not always the case.¹
• Work with an estate agent: Engage an estate agent to assist in your property search. They can provide additional information and keep you informed about new properties on the market. While properties are advertised online and in newspapers, many listings are in German, making an English-speaking estate agent a practical choice. Be prepared for a potentially lengthy search, as finding a property in a desirable area can take up to a year.¹
• Purchase unoccupied property: If you intend to live in the property, it's advisable to purchase an unoccupied one, as it can be challenging to evict tenants.¹
• Make an offer and negotiate: Once you find a property, you'll make an offer and enter negotiations. A deposit of around 20% is typical, but expats may be required to pay more due to being considered higher risk.¹
• Secure a mortgage: Most German banks offer mortgages, and some have English-speaking staff to assist you, although this is not always the case.¹
• Engage a notary: The notary will check for any issues with the property and register the transfer of ownership. If any problems are found, the sale cannot proceed until they are resolved. It's best to use the notary as an escrow to hold the purchase funds until the sale is finalized. If you cannot find a notary who speaks English, contact the British or American embassies for assistance.¹
• Be aware of capital gains tax: Remember that if you sell the property within ten years, you may need to pay capital gains tax of 25%, and you will typically be responsible for paying the agent's fees.²

Despite these considerations, the process is relatively straightforward for most buyers.¹

1. Expatica. "Buying property in Germany." Accessed December 19, 2025. https://www.expatica.com/de/housing/buying/buying-property-in-germany-100856/
2. Numbeo. "Property Prices in Germany." Accessed December 19, 2025. https://www.numbeo.com/property-investment/in/Germany