Buying a flat in Germany as a foreigner: the process step by step
Anyone buying a flat in Germany goes through the same procedure regardless of nationality: a notary notarises the contract and the land registry registers the new owner. This article describes the steps in the usual order and points out where foreign buyers should take particular care.
Who may buy?
German law imposes no permit requirement and no restriction based on nationality or residence on the acquisition of a freehold flat. Buyers from the EU and from third countries acquire on the same terms as German buyers.
An important exception is international sanctions: no assets may be made available to persons on an EU sanctions list, and further restrictions apply to certain groups of persons. The notary and the bank check this as part of their obligations under the Money Laundering Act (Geldwäschegesetz).
Step 1: Check and reserve the property
Before committing, you should at least have seen the land register extract, the declaration of division, the minutes of the last owners' meetings, the budget, the latest annual statement and the energy performance certificate. For let flats, the tenancy agreement and the history of rent increases are also needed.
A reservation is legally weak in Germany: without notarisation, it does not oblige the seller to sell. In 2023, the Federal Court of Justice (Bundesgerichtshof) ruled (I ZR 113/22) that a non-refundable reservation fee agreed in an estate agent's general terms and conditions unreasonably disadvantages the customer and is invalid if there is no significant consideration in return.
Step 2: Financing and proof of funds
The purchase contract generally contains no condition that the financing must succeed. Anyone financing the purchase should therefore have a binding loan commitment before notarisation. Anyone paying from their own funds will be asked by the notary and the bank about the source of the funds.
Cash payment is excluded: under § 16a of the Money Laundering Act (Geldwäschegesetz), the purchase price for German real estate may not be paid in cash, crypto assets, gold, platinum or precious stones. Non-cash payment must be proven to the notary, for example by a bank confirmation.
Step 3: Notary's draft and review period
The notary drafts the purchase contract and sends it to both parties. If the seller is a business (e.g. a property developer or a real estate company) and the buyer is a consumer, the notary should, under § 17 (2a) of the Notarisation Act (Beurkundungsgesetz), as a rule provide the buyer with the intended text two weeks before notarisation. If this period is not observed, the reasons must be stated in the deed.
For a purchase between private individuals, this fixed two-week rule does not apply; however, the notary must give the parties sufficient opportunity to familiarise themselves with the contract. Use the time to have the draft translated and checked by an adviser you trust.
Step 4: Notarisation and interpreter
A property purchase contract – which includes the purchase of a freehold flat – must be notarised under § 311b BGB, otherwise it is void. The notary reads the contract aloud and explains it. The deed is generally drawn up in German.
If a party, by their own account or in the notary's opinion, does not speak sufficient German, the record must be translated under § 16 of the Notarisation Act (Beurkundungsgesetz) – orally by an interpreter or by a notary with the necessary language skills; on request, a written translation must also be prepared. The interpreter's costs are usually borne by the party who needs one.
Step 5: Priority notice, approvals, property transfer tax
After notarisation, the notary applies for a priority notice of conveyance (Auflassungsvormerkung) in the land register (§ 883 BGB). It secures the buyer's claim against later dispositions by the seller, such as a resale or new encumbrances.
At the same time, the notary obtains the necessary declarations: the municipality's waiver of its right of first refusal, the cancellation documents for the seller's land charges and – if the declaration of division so provides – the consent of the WEG property manager under § 12 WEG. The tax office assesses the property transfer tax (Grunderwerbsteuer); only after payment does it issue the clearance certificate (Unbedenklichkeitsbescheinigung), without which the land registry will not register the transfer (§ 22 GrEStG).
Step 6: Due date, payment and handover
Once all contractual conditions have been met, the notary notifies that the purchase price is due. Payment is generally made directly to the seller or partly to the seller's bank to redeem existing land charges. A notary escrow account (Notaranderkonto) is only customary in special cases.
Possession, benefits and burdens usually pass upon full payment of the purchase price; from then on the buyer pays the service charge (Hausgeld) and property tax (Grundsteuer) and, for let flats, receives the rent. Meter readings and keys are recorded in a handover report.
Step 7: Registration in the land register
Finally, the notary applies for the transfer of ownership to be registered. The buyer becomes the owner upon registration in the land register. How long this takes depends heavily on the land registry; several weeks to months often pass between notarisation and registration. The buyer is protected during this time by the priority notice.
Sources
- https://www.gesetze-im-internet.de/bgb/__311b.html
- https://www.gesetze-im-internet.de/beurkg/__17.html
- https://www.gesetze-im-internet.de/beurkg/__16.html
- https://www.gesetze-im-internet.de/bgb/__883.html
- https://www.gesetze-im-internet.de/woeigg/__12.html
- https://www.gesetze-im-internet.de/grestg_1983/__22.html
- https://www.gesetze-im-internet.de/gwg_2017/__16a.html
- https://www.etl-rechtsanwaelte.de/aktuelles/makler-koennen-reservierungsgebuehren-in-allgemeinen-geschaeftsbedingungen-nicht-wirksam-vereinbaren/
- https://eur-lex.europa.eu/eli/reg/2014/833/oj
- https://eur-lex.europa.eu/eli/reg/2014/269/oj
- https://www.notariesofeurope.eu/wp-content/uploads/2022/05/QA-notaries.pdf
- https://www.agenziaentrate.gov.it/portale/schede/pagamenti/imposta-sul-valore-degli-immobili-estero-ivie/base-imponibile-e-aliquota-scheda-ivie
- https://www.agenziaentrate.gov.it/portale/Schede/Pagamenti/Imposta+sul+valore+degli+immobili+estero+Ivie/Versamento+e+dichiarazione+scheda+IVIE/?page=schede
- https://sede.agenciatributaria.gob.es/Sede/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-720-decla_____sobre-bienes-derechos-extranjero_/preguntas-frecuentes.html
- https://taxdown.es/inversion-acciones-bolsa/modelo-720
- https://www.impots.gouv.fr/sites/default/files/formulaires/2042-ifi/2026/2042-ifi_5480.pdf
- https://www.hcch.net/de/instruments/conventions/status-table/?cid=41
Frequently asked questions
Do I need to be resident in Germany to buy a flat?
No. Neither a residence nor a residence permit is required for the acquisition. However, financing with a German bank and tax matters (tax identification number) involve additional formalities.
Do I have to travel in person for the notarisation?
Not necessarily. You can be represented by means of a suitable power of attorney, or have a representative act without power of attorney and then approve the contract in certified form. Notarisation by video is not provided for property purchase contracts under current law.
Can I pay the purchase price in cash or in cryptocurrency?
No. § 16a of the Money Laundering Act (Geldwäschegesetz) excludes cash, crypto assets, gold, platinum and precious stones as consideration in a property purchase.
When do I become the owner?
Upon registration in the land register. Until then, you are protected by the priority notice of conveyance (Auflassungsvormerkung).
General information, as at October 2026. It does not replace advice from a tax adviser, solicitor or notary.
