For Germany there are no restrictions on property or land ownership for citizens. Also, there are no restrictions on property ownership for foreigners. It is possible for every natural person of legal capacity and every legal entity is allowed to own real estate.
FACTS
51.1%
of the households in Germany own real estate
43
million dwellings in Germany
27.2%
average rent to income ratio in Germany
Laws and Regulations
The agent’s fee is negotiable based on the agreement and therefore it is also negotiable if it will be paid by the buyer or the seller or split between the two. The fee does vary between the federal countries in Germany and ranges from 3.0% to 6.0%.
The total cost to the buyer of purchasing a property is usually around 10% of the purchase price. This covers:
3.5 – 6.5%
Property transfer tax (grunderwerbssteue)
1.2 – 1.5%
Notary’s fees
0.8 – 1.2%
Registration fees
1.5 – 3.0%*
Estate agent’s fees, if shared (* plus VAT at 19%)
Part of this payment is the transfer tac. In Germany this transfer tax, ‘Grunderwebsteur’, is based on 3.5% of the purchase price. However, this percentage is higher in different regions in Germany:
5.5% – Saarland
6% – Berlin
6.5% – Schleswig-Holstein
3.5% – Bavaria, Saxony
5% – Baden-Wurttemberg, Brandenburg, Hesse, Mecklenburg-Pomerania, North Rhine-Westphalia, Rhineland-Pfalz, Saxony-Anhalt, Thuringia
4.5% – Hamburg
There are no licensing laws/government regulation of the real estate industry in Germany. There are certain regulations but they are stated by voluntary or self-regulated bodies, some of which will only certify companies.
Search portals
The official association of real estate in Germany is called IVD. Here you can also find a real estate agent.
There are multiple shared listing websites in Germany for real estate. The most popular online property portal under the Germans are Immo Scout 24, Immowelt and Immobilo.
THE PROCES
1. Search
Searching for the ideal property based on your criteria
2. Analysis
Analysing the property
3. Valuation
Assessment of the real estate and a valuation
4. Negotiation
Negotiations with the vendor/agent in order to obtain the best possible conditions
5. Contracts
Compiling the offer and reviewing the contracts