St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Germany

Germany does not limit the sale of properties to foreigners: one can buy and sell housing and commercial real estate or rent it out.

Statistics confirm the liquidity of investments: residential real estate prices grow by an average of 1.9% every quarter. Five years ago, an apartment of 100 m² cost an average of €397,000, and today it is sold for €577,000.

€5,770 Average price per 1 m²
of housing in Germany
1,9% Average price per 1 m²
increase per quarter
5,5—16% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Germany

€6 million

Penthouse in the centre of Munich

€3 million

Apartment in the centre of Munich

€500,000

Apartment in Berlin

What do investors buy?

Germany’s most expensive real estate is in Munich: the price per square metre is twice as high as in the capital Berlin.

Apartments

  • penthouses and apartments with terraces
  • apartments

Houses

  • mansions and townhouses
  • village houses
  • castles, palaces and manor houses

Germany residence permit or citizenship by real estate investment

Obtaining a Germany residence permit or citizenship is not connected with purchasing real estate or investing.

Owners of real estate in Germany get Schengen multi-visas and can stay in Germany for up to 90 days in half a year.

40+ guides on European countries

Learn the prices for purchasing and renting a property in each country, the market dynamics and taxes on buying and selling real estate.

All countries

Get a real estate market analysis of all European countries

Download the guide

Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a transfer tax and additional fees. When selling through an agency, the agency fee is paid by the buyer, the seller or equally by the buyer and the seller as prescribed in the agreement terms.

Associated costs range between 5.5% and 16% of the purchase agreement value. When buying a new apartment for €500,000, the investor will spend €531,000, including additional costs.

5.5—16% Of the contract value are related costs for the purchase of housing in Germany
Purchase expenses
Transfer tax
3.5—6.5%
Depends on the region
Notary fee
1.2—1.5%

Depends on the transaction amount

Registration fee
0.8—1.2%
Depends on the transaction amount
Agency fee

If selling through an agency

0—7%
VAT included

Taxes

Property owners pay an annual tax of 1% to 2.8% of the cadastral value. The tax rate depends on the municipality.

Real estate rental income is included in the income tax base. The income tax rate is progressive from 0% to 45%.

€2,700 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€145—345 

per month

Internet, TV and telephone
€25—50 

per month

If the seller has owned the property for less than ten years, they pay a capital gains tax. The income tax base includes the difference between the sale and purchase prices. The income tax rate is progressive from 0% to 45%.

When selling through an agency, an agency fee ranges between 4% and 7%. The commission can be paid by the seller, the buyer, or the buyer and the seller equally as prescribed in the sale and purchase agreement.

0—45% Capital gains tax on the sale of
real estate
Expenses on the sale
Capital gains tax

Paid on the difference between the purchase and sale prices

0—45%
Agency fee

If sold through an agency

0—7%

VAT included

Frequently asked questions

Can foreigners buy real estate in Germany?

Yes. There are no restrictions for foreigners who want to buy, sell, or rent real estate in Germany.

Is real estate cheap in Germany?

There are ways to find relatively affordable real estate in Germany. However, German real estate can’t be considered cheap. The average housing cost in Germany is €5,770 per 1 m².

Real estate at affordable prices can be bought in small towns. For example, in Dresden, 1 m² of housing costs around €2,900 and, in Dortmund — €2,000.

Relatively inexpensive housing can be found in different parts of Germany: in the east in Leipzig, a 30 m² one-bedroom apartment prices start from €35,000, and in the west in Oberhausen — from €40,000.

Is Germany good for real estate?

Yes. German real estate is a liquid asset: residential property prices grow by an average of 1,9% every quarter. Residential and commercial properties can be rented out and resold for profit.

Will German house prices fall?

On the contrary, German house prices increase by 5—10% each year. In the past 5 years, German real estate prices have grown 5 times.

Is there property tax in Germany?

Property owners in Germany pay an annual tax of 1% to 2,8% of the cadastral value. The tax rate depends on the municipality.

Income from renting out real estate is included in the income tax base. The income tax rate is progressive from 0% up to 45%.

Real estate sellers who have owned a property for less than ten years, pay capital gains tax of 0—45%.