Buying a Home in Germany in 2026: Steps, Documents, Taxes, and Risks

Buying an apartment or house in Germany involves more than just choosing a property. The buyer must calculate the Kaufnebenkosten in advance, secure financing, review the documents, sign the notarized Kaufvertrag, and wait for the entry in the Grundbuch. For foreigners and recent immigrants to Germany, the main challenges usually relate not to the right to purchase real estate, but to the mortgage, the language of the contract, and verifying the source of funds.

If the property is being purchased not for personal residence but for rental purposes, see also investment real estate in Germany: there, factors such as yield, rental taxes, vacancy risk, and tenant rights are important.

How Much Money Do You Need to Buy a Property?

It’s best to start not with listings, but with a budget. The price listed in the property description is just a starting point. You’ll almost always need additional funds to cover closing costs, moving expenses, kitchen appliances, renovations, and a reserve for the first few months of ownership.

The main Kaufnebenkosten include:

property transfer tax (Grunderwerbsteuer);
Notary and registration in the Grundbuch;
real estate agent fees, if the transaction is conducted through an agent;
moving, renovations, furniture, kitchen, and appliances;
Set aside an initial reserve for building maintenance fees, insurance, utility bills, and unexpected repairs.

If you are buying a home for only a few years, think ahead about exiting the deal: Selling a home in Germany also involves costs, timelines, and tax implications.

Grunderwerbsteuer by Federal State

In 2026, the Grunderwerbsteuer rate varies by state. Before signing the contract, check the rate on the state tax authority’s website or using an up-to-date tax calculator, as this tax is one of the largest additional expenses.

State	Grunderwerbsteuer rate
Baden-Württemberg	5%
Bavaria	3.5%
Berlin	6%
Brandenburg	6.5%
Bremen	5.5%
Hamburg	5.5%
Hesse	6%
Mecklenburg-Western Pomerania	6%
Lower Saxony	5%
North Rhine-Westphalia	6.5%
Rhineland-Palatinate	5%
Saarland	6.5%
Saxony	5.5%
Saxony-Anhalt	5%
Schleswig-Holstein	6.5%
Thuringia	5%

Example: A property for 300,000 euros

Expense category	Guideline	Approximate amount
Grunderwerbsteuer	3.5–6.5%	10,500–19,500 euros
Notary and Land Registry	approx. 1.5–2%	4,500–6,000 euros
Buyer’s share of the real estate agent’s commission	0–3.57%	0–10,710 euros
Transaction costs (excluding renovations)	approx. 5–12%	15,000–36,210 euros

A real estate agent’s commission is not automatically charged: it depends on the contract, the region, and who commissioned the service. When purchasing an apartment or a single-family home, the consumer’s contract with the real estate agent must be in text form, and in a typical transaction involving both parties, the buyer should not pay more than their share of the total commission.

Mortgages and Personal Funds

The bank reviews your income, equity (Eigenkapital), the property, , your SCHUFA credit report, and the source of funds. If the purchase is financed with a loan, a Grundschuld—a lien in favor of the bank—is typically entered in the land register (Grundbuch).

A practical guideline: have enough of your own funds to cover not only the down payment but also all Kaufnebenkosten. Buyers often plan to cover 20–30% of the total costs with their own funds, but this is not a strict rule. Terms depend on income, region, interest rates, the property itself, and the bank’s policies. It’s best to review the details on financing separately in the article on and mortgages in Germany.

Formula for an initial calculation:

Total cost = property price + Kaufnebenkosten + reserve for the initial period of ownership.

The amount you need to have available now = your share of the purchase price (excluding the mortgage) + closing costs + a contingency fund.

Searching for a Property

Determine the purpose of the purchase: to live there yourself or to rent it out. For a primary residence, the neighborhood, schools, transportation, noise levels, floor plan, and the condition of the property are more important. For an investment, the rental agreement, actual rental rate, liquidity, future repairs, and tax implications are key.

Main search platforms: ImmobilienScout24, Immowelt, Immonet, Kleinanzeigen, regional real estate agents, developers’ websites, and local classifieds. For land and houses with lots, it is helpful to check the Bodenrichtwert via the official website BORIS. For foreclosure auctions, there is a separate process—, Zwangsversteigerung.

If the price seems too good to be true, check whether it involves Erbbaurecht. A property on leased land cannot be compared directly to a regular apartment or house: there are Erbbauzins, a term of the right, and specific contractual conditions.

How to Read a Listing

Abbreviations such as ETW, Grundstück, Neubau, Kaltmiete, Hausgeld, Wohnfläche, and Nutzfläche are commonly found in listings. It’s best to compare apartment prices based on Wohnfläche, but you should ask the seller for a floor area calculation and floor plan. For an apartment, Hausgeld, the condition of the WEG, and future repairs are sometimes more important than a recently renovated interior.

Before viewing properties, please clarify the following:

Is the property vacant or currently rented out?
What’s included in the price: kitchen, appliances, parking, basement, furniture;
when the keys can be handed over;
What repairs have already been done and which ones are being discussed;
Check whether an Energieausweis and the main documents for the property are available.

During a viewing, don’t just look at the finishes. Check the windows, humidity levels, basement, roof, heating, noise levels, building entrance, parking, and the overall condition of the building. Regarding energy consumption, request an energy performance certificate () in advance:.

Verification of Documents

The notary is responsible for the legal formalities of the transaction, but does not inspect the roof, check for mold, assess the quality of renovations, verify the legality of remodeling, or review the financial status of the WEG on the buyer’s behalf. These risks must be addressed before signing.

Grundbuch

The following items are checked in the Grundbuchauszug:

Section I — who is the owner;
Section II — third-party rights, easements, right of residence, and restrictions;
Section III — Grundschuld, Hypothek, and other liens.

Access to the Grundbuch is granted upon demonstration of a legitimate interest; therefore, in practice, the seller, real estate agent, or notary provides the extract. If the buyer is to acquire the property free of any existing encumbrances, this must be specified in the contract and the terms of the Lastenfreistellung.

Apartment in a WEG

When purchasing an Eigentumswohnung, you should review not only the apartment itself but also the documents of the homeowners’ association:

Declaration of Co-ownership and House Rules;
Business plan and annual financial statement;
minutes of recent meetings;
Hausgeld and Instandhaltungsrücklage;
Collection of Decisions;
information about Sonderumlage and major future construction projects;
Property manager’s consent, if required by the building’s rules.

When you buy an apartment, you are buying a share in the common property. Repairs to the roof, facade, elevator, or heating system may end up being more expensive than cosmetic issues inside the apartment. If there are separate house rules, parking, or storage, check where these are legally stipulated.

House or Land

For a house and lot, you should also check the building permit (Baugenehmigung), the list of encumbrances (Baulastenverzeichnis), the contaminated sites registry (Altlastenregister), the zoning plan (Bebauungsplan), development costs (Erschließungskosten), resident contributions (Anliegerbeiträge), cadastral boundaries, utilities, and the history of repairs. For an older house, it’s wise to hire an appraiser (Gutachter), especially if there are cracks, moisture issues, an old roof, an outdated heating system, or unclear renovations.

When ownership of an older single- or two-family home changes, obligations under the Gebäudeenergiegesetz (GEG) may arise: insulating the top floor or roof, insulating pipes in unheated rooms, and replacing certain older standard boilers. New owners are often required to fulfill these obligations within two years, but specific exceptions depend on the type of house and its equipment.

Property with a Tenant

A sale does not terminate the lease: the buyer assumes the existing Mietvertrag. If you plan to live in the property yourself, you must check the lease terms, the tenant’s remaining lease term, the Mietkaution, any outstanding debts, a possible Vorkaufsrecht, and protection against rapid Kündigung wegen Eigenbedarf before closing the deal.

New Construction

A purchase from a developer is usually formalized through a Bauträgervertrag. Ask the notary for the Baubeschreibung, floor plans, Ratenplan, deadlines, finish specifications, and rules regarding parking and storage. In consumer transactions with a business, the draft contract should generally be made available in advance so that the buyer can review the text at their leisure.

Payments to the developer must be made according to the contract and its milestones, not based on a verbal request from a manager. During the final inspection (Abnahme), defects, unfinished work, and discrepancies from the building specifications (Baubeschreibung) are documented. It is more difficult to dispute issues after acceptance, so it is best to attend the inspection with a technical specialist.

Notary and Kaufvertrag

In Germany, the purchase of real estate requires notarization. The notary is an independent party: they draft the contract, explain its contents, and arrange for entries in the Grundbuch. All important terms must be included in the Kaufvertrag: price, deadlines, key handover, kitchen, furniture, parking, defects, payment terms, and vacating the property.

Verbal promises made by the seller do not replace the notarized contract. This is particularly important regarding the kitchen, furniture, repairs to be completed before handover, move-out deadlines, and liability for known defects.

What Happens After Signing

The typical transaction process is as follows:

The notary submits an Auflassungsvormerkung to the Grundbuch to protect the buyer until final registration.
The notary gathers the necessary information to ensure a secure payment: consents, documents for the removal of existing encumbrances, and bank details.
Once the conditions are met, you will receive the Fälligkeitsmitteilung.
The buyer pays the purchase price according to the instructions of the notary and the bank.
The Finanzamt issues a Bescheid regarding Grunderwerbsteuer.
After the tax is paid, an Unbedenklichkeitsbescheinigung is issued.
The notary initiates the Eigentumsumschreibung, and the buyer becomes the owner after the entry is made in the Grundbuch.

Keys are often handed over before the final entry in the Grundbuch, but this does not mean that ownership has already been transferred. The contract specifies “Besitz, Nutzen und Lasten” separately—the date from which the buyer takes possession of the property and assumes ongoing expenses.

Payment and the Cash Ban

In a standard transaction, the money is most often transferred directly to the seller or the seller’s bank after the Fälligkeitsmitteilung. A Notaranderkonto is used only when there is a justified Sicherungsinteresse, not automatically.

Starting in 2023, when purchasing real estate in Germany, you cannot pay the purchase price in cash, cryptocurrency, gold, platinum, or precious stones. The bank and notary may request documentation regarding the source of funds—this is a standard part of the anti-money-laundering verification process.

Taxes, Subsidies, and Expenses After Purchase

After the transaction, there are recurring expenses: Grundsteuer, Hausgeld, building insurance, utility bills, heating maintenance, future repairs, the WEG reserve fund, or your own repair fund. It’s worth reading more about these topics separately: housing maintenance costs, and property tax in Germany,.

A new Grundsteuer system has been in effect since 2025. The specific amount is determined by the municipality through the Hebesatz, so similar homes in neighboring cities may receive different bills.

Financial assistance depends on the state, income, family composition, the property itself, and energy efficiency. In 2026, for example, it’s worth checking KfW Wohneigentum für Familien Neubau 300, KfW Wohneigentum für Familien Bestandserwerb 308, and Hessengeld for your first owner-occupied home in Hesse. The terms of funding programs change frequently, so you should verify them before signing the contract, not after.

Specifics for Foreigners

Foreign citizenship, the lack of a residence permit, or permanent residence do not in and of themselves prohibit the purchase of real estate in Germany. However, for non-residents and new residents, financing, identification, and verification of income and the source of funds are more complicated.

If the buyer cannot travel to Germany, a power of attorney (Vollmacht) is sometimes used. It is best to have the text of the power of attorney reviewed by a German notary in advance. Documents from abroad may require an apostille () or notarization; otherwise, the document may not be accepted.

Buying an apartment or house does not grant the right to live in Germany without complying with visa regulations. Real estate is property, while entry, residence, and work permits are regulated separately.

Checklist Before Visiting the Notary

What to Check	Why
Passport, marital status, buyer information	For the contract and the Grundbuch
Proof of Financing	To Avoid Signing a Contract Without the Funds
Land Registry Extract	Owner, encumbrances, third-party rights
Energy Performance Certificate	Energy Costs and Possible Renovations
WEG Documents	Maintenance Fees, Reserves, Repairs, Special Assessments
Documents related to the house or lot	Baulasten, Altlasten, Bebauungsplan, utilities
Rental agreement, if the property is rented out	Tenant rights and restrictions for personal use
Building Specifications and Payment Schedule for New Construction	What Exactly Is Being Built and When to Pay
Draft Purchase Agreement	All agreements must be included in the notarized text

Common Mistakes

Treating Kaufnebenkosten as a minor expense and basing your budget solely on the listed price.
Transfer the funds before the notary’s Fälligkeitsmitteilung.
Buying an apartment without WEG documents.
Do not check whether the kitchen, parking space, or storage room is included in the price.
Treating “Wohnfläche” and “Nutzfläche” as the same thing.
Ignore the Energieausweis and GEG obligations for an older home.
Do not sign a Reservierungsvereinbarung (reservation agreement) that requires a large non-refundable payment before inspecting the property and securing financing.
Thinking that the keys are equivalent to ownership.
Believing that purchasing a home serves as a substitute for a visa or residence permit.

FAQ

Can a foreigner buy an apartment in Germany without a residence permit? Yes. The restrictions usually do not concern the right to own property, but rather the mortgage, verification of funds, and the transaction process.

When do I become the owner? After the transfer of title (Auflassung) and registration in the land registry (Grundbuch). Signing the contract and receiving the keys do not, in and of themselves, make the buyer the owner.

Can I pay for the purchase in cash or cryptocurrency? No. There is a ban on using cash and certain cash substitutes, including crypto assets and precious metals, for real estate purchases.

Is a notary escrow account (Notaranderkonto) required? No. In standard transactions, a direct transfer following the notice of due date (Fälligkeitsmitteilung) is more commonly used. A notary escrow account is only required if there is a legitimate security interest.

What is most important when buying an apartment? Check the WEG records: meeting minutes, Hausgeld, Instandhaltungsrücklage, Beschlusssammlung, Sonderumlage, and scheduled repairs.

What to Do When Handing Over the Keys? Prepare an Übergabeprotokoll: the property’s condition, meter readings, set of keys, defects, photos, and a list of remaining furniture and appliances.

Can two unmarried people buy a home together? Yes. The ownership shares must be specified in the Kaufvertrag and recorded in the Grundbuch. If the contributions are unequal, it is best to discuss the ownership structure with a notary in advance.

What changes if the property is sold with a tenant in place? The buyer assumes the existing Mietvertrag. If the property is for personal use, you must assess in advance the terms, the grounds for Eigenbedarf, and the tenant’s potential rights.