Buying Property in Germany as an Expat

Many expats who move to Germany eventually want to stop renting and buy their own place. The good news: in Germany, foreigners are generally allowed to buy real estate, and with the right partner, it’s often easier than you think, even if you’ve just arrived and don’t have much German credit history yet.

For internationals navigating the complex German mortgage market, working with specialized mortgage brokers can make a significant difference. Hypofriend is a digital mortgage broker that specializes in helping internationals in Germany find the right mortgage or "Immobilienfinanzierung" from over 750 German banks. They advise in English, help you understand all costs, and connect you with banks that work with non-German customers.

Understanding the Path to Property Ownership as a Newcomer

Both renting and buying in Germany come with their own challenges when you're new to the country, and it's important to understand what each path requires.

Renting as a Newcomer: Landlords and agents typically ask for:

• Proof of income (salary slips)
• A confirmation from your previous landlord
• A SCHUFA (German credit report)

As a newcomer, you often don't have all of this yet, which can make finding a rental competitive especially in major cities like Munich, Berlin, and Frankfurt.

Buying as a Newcomer: While property ownership can be an excellent long-term investment, it requires:

• Upfront capital (10-30% down payment plus 8-15% in closing costs)
• Stable residence status (more on this below)
• Proof of income and financial stability
• Bank approval for mortgage financing

The key difference: renting requires smaller upfront costs and is generally more accessible in the short term, while buying requires substantial financial resources and long-term planning but can build wealth over time if you're staying in Germany for many years.

Can Foreigners Buy Property in Germany? What Visa Do You Need?

Yes, foreigners can buy property in Germany, but your residence status significantly impacts your ability to get mortgage financing, which most people need.

Here's what you need to know:

Legally purchasing property: There are no restrictions on non-Germans buying property in Germany. You can technically purchase real estate even as a tourist.

Getting a mortgage (the real challenge): German banks evaluate mortgage applications based on risk, and your visa status is a major factor:

Best for Mortgages:

• Permanent residence permit (Niederlassungserlaubnis) – Banks treat you almost like German citizens
• EU Blue Card holders – Highly favored by banks due to skilled worker status
• Unlimited work permits – Good standing with most banks

Possible but More Challenging:

• Limited work permits (e.g., regular work visa for 1-3 years) – Some banks will work with you, especially if renewable
• Opportunity Card holders transitioning to work permits – Once you secure employment and transition to a work visa, you can start building your mortgage eligibility

Very Difficult:

• Student visas – Most banks won't offer mortgages, though parents can sometimes buy property for their student children
• Job seeker visas – Too temporary for most banks
• Tourist visas – Banks won't finance, though you could buy with cash

The Bottom Line: While anyone can legally buy property in Germany, realistically, you need at least a stable work permit (ideally 2+ years) or permanent residence to secure mortgage financing from German banks. If you're planning long-term property ownership, building toward permanent residence is a strategic goal.

You can use Hypofriend's online affordability calculator to get a sense of financing possibilities based on your income and situation.

Where to Find Property in Germany

Most people in Germany search on the big real estate portals:

• Immobilienscout24
  
• Immowelt
  
• Immonet
  

There you’ll find both private sellers and real estate agents. For most agent-mediated purchases, a brokerage fee (Maklerprovision) of about 3.57% to 7.14% of the purchase price applies.

You can also look for new-build projects (Neubau) directly from developers. 

• Advantage: usually no brokerage fee. 
• Disadvantage: you often have to wait 12–24 months until the apartment is finished. New builds are, for example, collected on Neubaukompass; many listings are also available in English.

Tip: If you already know which neighborhood you like, walk or cycle through it and check the shop windows of local agents and banks; many still list properties there.

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How to Finance a Property in Germany

This part sounds complicated, but it doesn’t have to be. With Hypofriend, you can simulate your options and see:

• how much you can borrow,
• how much equity you need,
  and what monthly rate fits your income.

Simple rule of thumb (for employees):
Monthly net income × 100 ≈ maximum mortgage amount a German bank may lend.

Example: If you earn €3,000 net per month → roughly €300,000 mortgage might be possible.

Important: Purchase costs (property transfer tax, notary, and possibly agent) are not financed and must be paid in cash. These costs vary by German federal state and a mortgage calculator shows you the exact rate.

Equity helps - The more of your own money you bring, the better the conditions usually get.

Repayment (Tilgung) in Germany

German banks rarely offer interest-only loans. A typical mortgage consists of:

• interest
• plus at least 1,5% principal repayment per year

At current interest rates, a 2% repayment means you would need several decades to pay off the loan; that’s why many banks allow extra repayments (Sondertilgung) of up to 5% per year, or you can choose a higher starting repayment later on. That lowers the total interest you pay.

Fixed Interest (Zinsbindung)

Germans like planning security, so interest is often fixed for 10 years. Longer fixed-rate periods (15 or 20 years) are also possible, usually with a small surcharge.

Variable rates are uncommon for private buyers in Germany.

Hypofriend can show you these options in English and explain what makes sense for your situation.

Financing Student Housing in Germany

If you’re a parent of a student in Germany or a student whose family wants to invest, student apartments can be an attractive long-term investment. Many international families buy such small units for their children. Financing of up to around 70% of the purchase price is often possible, depending on income and the property. Hypofriend can also advise you here and offer solutions via Investfriend. 

Which Documents Do Banks Need?

German banks like structure and documentation. Typically, you’ll need:

If employed:

• Online financing questionnaire / self-disclosure
• Last 3 salary slips
• Proof of equity (e.g., current bank statement)

If self-employed:

• Last 2 income tax assessments
• Annual accounts/profit statements (usually prepared by a tax advisor)
• Proof of equity

You also submit the property documents (exposé, land register extract, floor plan, purchase contract draft).

Hypofriend helps you collect and submit the right files to the right bank at no extra cost to you (brokers in Germany are paid by the bank).

The Buying Process in Germany — Step by Step

1. Get financially qualified
   First, Hypofriend checks how much you can borrow and which banks will finance you as an expat. With this pre-qualification, you can search more confidently and signal to sellers that you’re serious.
2. Find your property
   Once you’ve found an apartment or house, send the property documents to Hypofriend. They request financing from the bank that currently has the best conditions for your profile. Depending on the bank, a financing confirmation can be available within a few working days.
3. Notary & purchase contract (Kaufvertrag)
   In Germany, every property purchase must be notarized. The (selling) agent will usually suggest a notary. Many notaries in bigger cities can provide an English version, or you can bring a translator. The notary must explain the contract to you and answer your questions.
4. Mortgage contract & land charge
   The bank sends you the loan agreement and a form for the land charge (Grundschuld) — this is the bank’s security on the property. The notary registers this in the land register. After registration (typically around 2 weeks), the bank can disburse the loan to the seller.

5. Pay the purchase price & move in
   Once the notary’s conditions are fulfilled and the purchase price is fully paid, ownership is transferred, and you can move into your new home.

Why Working with Hypofriend Can Make This Process Easier?

• 100% online, in English – No language barriers throughout the process
• Experienced with expats and international income – Understanding unique situations
• Access to hundreds of German lenders – Comparing offers to find the best rates
• Transparent overview of all buying costs – No surprises
• Support from start to finish – From "how much can I afford?" to "I've got the keys"

If you're planning to stay in Germany for a few years and want to build wealth instead of paying rent, getting pre-qualified for a mortgage is a smart first step.

Ready to explore your options? You can learn more about mortgage financing for internationals and use affordability calculators at Hypofriend.de

Starting Your Journey to Germany: Planning for Long-Term Goals

For those just beginning their journey to Germany, it's worth planning ahead if owning a property is one of your long-term goals. Your pathway matters:

Strategic Visa Planning:

• Opportunity Card → Work Visa → Permanent Residence → Property Purchase is a common pathway for skilled workers
• Student Visa → Job Seeker/Work Visa → Permanent Residence works for graduates
• Direct Work Visa/Blue Card → Permanent Residence is the fastest route if you already have a job offer

The Opportunity Card (Chancenkarte), for example, allows qualified professionals to come to Germany for up to one year to search for employment without a job offer upfront. Once you secure work and transition to a work permit, you're building toward the stable residence status that makes mortgage financing more accessible down the line.

If you're coming to Germany and need help with visa requirements like Blocked Accounts and Health Insurance, Expatrio specializes in helping internationals meet German visa requirements with services accepted by all German authorities.

Property ownership in Germany is an achievable goal for internationals who plan strategically and work with the right experts at each stage of their journey from visa application to mortgage approval.

This article was contributed by Hypofriend, specialists in helping expats purchase property in Germany.