Buying a flat in Germany as a foreigner: the process step by step

Anyone who buys a flat in Germany goes through the same procedure regardless of nationality: a notary notarises the contract and the land registry enters the new owner. This article describes the steps in their usual order and points out where foreign buyers should take particular care.

Who is allowed to buy?

German law requires no permit for the purchase of a freehold flat (Eigentumswohnung) and imposes no restriction based on nationality or place of residence. Buyers from the EU and from third countries acquire property 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 (Grundbuchauszug), the declaration of division (Teilungserklärung), the minutes of the last owners' meetings, the budget plan (Wirtschaftsplan), the most recent annual statement (Jahresabrechnung) and the energy performance certificate (Energieausweis). For let flats, the tenancy agreement and the history of rent increases are also part of this.

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

As a rule, the purchase contract contains no condition that the financing must succeed. Anyone who is 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, the purchase price for a property in Germany 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.

This fixed two-week rule does not apply to a purchase between private individuals; however, the notary must give the parties sufficient opportunity to consider the contract. Use the time to have the draft translated and reviewed by an adviser you trust.

Step 4: Notarisation and interpreter

A contract for the purchase of real property – which includes the purchase of a freehold flat – must be notarised under § 311b of the German Civil Code (BGB), otherwise it is void. The notary reads the contract aloud and explains it. The deed is normally drawn up in German.

If a party, by their own statement or in the notary's opinion, does not speak sufficient German, the record must be translated under § 16 of the Notarisation Act – 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 pre-emption right (Vorkaufsrecht), cancellation documents for the seller's land charges (Grundschulden) and – if the declaration of division provides for it – the consent of the WEG administrator (WEG-Verwalter) under § 12 of the Condominium Act (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 are met, the notary notifies the parties that the purchase price is due. Payment is usually made directly to the seller or, in part, to the seller's bank to redeem existing land charges. A notary escrow account (Notaranderkonto) is customary only 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. At handover, meter readings and keys are recorded in a protocol.

Step 7: Entry in the land register

Finally, the notary applies for the transfer of ownership to be registered. The buyer becomes the owner upon entry in the land register (Grundbuch). How long this takes depends heavily on the land registry; several weeks to months often pass between notarisation and entry. The priority notice protects the buyer during this time.

If you buy from the UK or the US

Documents from the United Kingdom, the USA, Canada or Australia are generally recognised in Germany with an apostille under the Hague Convention of 1961; a certified German translation may additionally be required.

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 a place of residence in Germany to buy a flat?

No. Neither a place of residence nor a residence permit is required for the purchase. However, financing with a German bank and tax purposes (tax identification number, Steuer-Identifikationsnummer) 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. Under current law, notarisation by video is not provided for contracts for the purchase of real property.

Can I pay the purchase price in cash or in cryptocurrency?

No. § 16a of the Money Laundering Act excludes cash, crypto assets, gold, platinum and precious stones as consideration in a property purchase.

When do I become the owner?

Upon entry in the land register. Until then, the priority notice of conveyance protects you.

General information, as of October 2026. It does not replace advice from a tax adviser, a lawyer or a notary.