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.
of housing in Germany
increase per quarter
of the transaction amount
How the residential property price index is growing in Germany
Cost of a 3-bedroom apartment in Germany
Penthouse in the centre of Munich
Apartment in the centre of Munich
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.
- penthouses and apartments with terraces
- 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.
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Taxes and associated costs
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%.
maintenance of an apartment
Electricity, gas, water, heating, and garbage collection
Internet, TV and telephone
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.
Capital gains tax
Paid on the difference between the purchase and sale prices
If sold through an agency
Frequently asked questions
Yes. There are no restrictions for foreigners who want to buy, sell, or rent real estate 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.
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.
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.
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%.