Germany places no nationality restriction on buying property, and many buyers are non-resident. The process is notary-centred and protective, but the costs are significant.
The mandatory notarial deed
A German property purchase is only valid if executed before a notary (Notar). The notary drafts and reads the contract, oversees signing, and arranges entry in the land register (Grundbuch).
The priority notice
To protect the buyer between signing and final registration, the notary records a priority notice (Auflassungsvormerkung) — a key safeguard you should make sure is in place before paying.
Transfer tax and fees
The real-estate transfer tax (Grunderwerbsteuer) is set by each federal state and ranges roughly from 3.5% to 6.5%. Add notary and registration fees, and — since the 2020 reform — an agent commission that is now commonly split between buyer and seller.
For foreign buyers
The contract is in German and binding once notarised, so review before signing matters. A verified German colleague can check the Grundbuch, explain the draft deed, and confirm the state-specific tax before the notary appointment.
State tax rates and rules vary — confirm with admitted German counsel.