Guide to buying residential property in Germany (2024)

FAQs

Guide to buying residential property in Germany? ›

Foreigners can buy real estate in Germany. There is no visa requirement to buy a house in Germany. Foreigners need a valid visa to get a mortgage from a German bank. Price atlas from Homeday or Immobilienscout24 will give you a good idea of house prices in a particular location.

Foreigners can buy real estate in Germany. There is no visa requirement to buy a house in Germany. Foreigners need a valid visa to get a mortgage from a German bank. Price atlas from Homeday or Immobilienscout24 will give you a good idea of house prices in a particular location.

Last Updated on August 7, 2024 by Kristina Valcheva

Renowned for its stable economy, strong legal system, and commitment to quality living, buying property in Germany as a foreigner is a secure and reliable investment, and you can benefit from rising house prices.

First, the purchase of real estate in itself is not a reason for issuing a visa or residence permit. However, the property owner may apply for a visa, residence permit or citizenship. Different countries have different immigration policies.

Although the housing market is competitive in Germany, it's definitely not impossible to buy a house or apartment if you put time and energy into your search.

A good salary in Germany is usually above Germany's median salary of 43.750 euros gross a year and above the average gross wage of 50.250 euros gross a year. A salary between 64.000 and 70.000 euros gross a year is considered a good salary in Germany.

If you don't live and work in Germany, you might need a deposit of at least 40% of the property's value. Some banks will require you to earn a minimum amount per year to get a mortgage (for example, €20,000), and lenders will usually require that your mortgage repayments won't be more than 35% of your monthly income.

Real property tax (Grundsteuer)

Payable to your local tax office (Finanzamt), this annual municipal tax is mandatory for all property owners in Germany. The amount payable is calculated by multiplying the assessed value of the property with the local tax rate (somewhere between 0,26% and 1%).

Does Germany allow dual citizenship? ›

Please note that as of June 27, 2024, new citizenship laws entered into force in Germany. Germany now allows dual citizenship for all of its citizens and foreign residents as long as the other country also permits it.

Stage 2 of the Skilled Labour Immigration Act came into force on 1 March 2024. The new rules make it easier for people from outside the EU to work in Germany in fields such as the care sector. Employers benefit from reduced bureaucracy and more streamlined procedures.

How Much to Invest for Germany Citizenship? Unlike typical Golden Visas, there is no minimum investment amount that will qualify you for a German investment visa. However, it is recommended that you invest at least €360,000.

Most homebuyers in Germany choose fixed-rate mortgages for a fixed rate of 10 years. Many buyers in Germany will need to pay a downpayment, with 20% being a common amount; Non-residents may need to pay a larger deposit. Average house prices for single-family and duplex homes (approx.)

#1 Clothing

As the data shows, 50% of German buyers most frequently purchase clothes. Moreover, the prediction is that the fashion e-commerce market in this country will reach $28,982.1 million at some point in 2024, which may make up 24.2% of Germany's total e-commerce market.

Renting more common than owning

But Germany is now paying dearly for its previous political mistakes: the federal government sold thousands of apartments to private investors, while at the same time local governments drastically reduced the construction of social housing.

Prices for Houses in Germany

The Immowelt platform reports that in 2023, the average cost of a finished house is 2,971 euros per square meter. In Hamburg, housing will cost you 5,781 € per m², while in Munich, it's as high as 10,420 € per m².

How Can I Get German Citizenship by Investment. Germany doesn't have direct citizenship by investment or a Golden Visa program. But if you start a qualifying business in the country, you can be eligible for German residency.

Is it easy to get permanent residence in Germany? If you meet all the necessary criteria, have all the required documents, and successfully sit the interview, then yes, it can be easy to gain a permanent residence permit and permanent residency status.