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There are no restrictions for foreign nationals on buying a property in Germany.
Financing is possible for non-residents, but should not be expected to cover more
than 60% of the purchase price.
It is recommendable to employ an agent (Makler) when buying a property. He will
assist during the whole purchase process.
Any transfer of ownership of real estate in Germany needs to be done at a notary
public (Notar). If seller or buyer has limited German language skills, an English
speaking notary is recommendable. He could draw the contracts with English
translations.
Change of ownership needs to be declared to the land register (Grundbuch). This is
done by the notary automatically.
When buying a property in Germany, real estate transfer tax
(Grunderwerbsteuer) is due.
The real estate transfer tax is a state tax that applies on any transfer of real estate.
Normally, it is paid by the buyer.
Basis for calculation of the real estate transfer tax is the purchase price of the
property. Furniture that is included in the purchase price might be exempt if certain
requirements are met.
The tax rate is assessed by the state your property is located in. In 2014, the rates
are between 3.5 % and 6.5 %
Normally, the transfer of ownership of a purchased property can’t take place unless
the real estate transfer tax is assessed and paid.
Summary of transaction Costs:
Who Pays?
Real Estate Transfer Tax
3.5% - 4.5%
buyer
Notary Fees
0.6% - 1.5%
buyer
Land register Fees
0.2% - 0.5%
buyer
Broker's (Makler's) Fee
1.78% - 3.57%
buyer or seller
Please feel free to contact us in case of any questions.
Purchase of property in Germany