Foreigners can buy property in Germany without restriction – neither the German Constitution (Grundgesetz) nor the Civil Code (BGB) ties a purchase to any nationality. Whether you get a mortgage, and on what terms, depends instead on your residence permit, your income and your creditworthiness. Our mortgage and home-loan guide explains the general process; here, we focus specifically on the points that work differently for expats and newcomers.
Can Foreigners Buy Property in Germany?
Yes, without restriction. Non-EU citizens can also acquire property, and no residence permit is required for the purchase itself. As with any buyer, the purchase contract is notarized and entered in the land register (Grundbuch). Important: owning a property does not grant you any right of residence – buying and staying are two separate matters.
What Does Financing Depend On? Your Residence Permit Decides
Banks assess the risk of long-term financing heavily based on your residence status. Here's how most lenders typically rank the profiles:
EU/EEA citizens
Treated almost like German citizens. With a stable income paid in euros, financing up to 100% of the purchase price is possible in the best case.
Blaue Karte EU (EU Blue Card)
Viewed positively by banks. With strong income and good creditworthiness, up to 100% loan-to-value is achievable in the best case – you cover the closing costs yourself.
Niederlassungserlaubnis (permanent settlement permit)
A permanent residence title significantly widens the pool of banks and noticeably improves your terms. For most lenders, this is the ideal starting profile.
Befristete Aufenthaltserlaubnis (temporary residence permit)
A mortgage is possible, but harder: fewer banks finance it and they expect more equity. Ideally, your permit should cover the fixed-interest period – the shorter its remaining validity, the harder it is to get approved.
In short: A temporary residence permit does not rule out a mortgage. It just makes it more demanding – ideally your permit covers the fixed-interest period, and you bring a bit more equity to the table.
How Much Equity Do You Need as a Foreigner?
The general rule of thumb applies to everyone: you should cover the closing costs (around 10%, depending on the federal state) from your own funds, and Interhyp recommends about 20% equity on top for good terms. For foreign borrowers, many banks add a bit more depending on your status:
| Profile | Equity | Note |
|---|---|---|
| General recommendation (Interhyp) | approx. 20% + closing costs | Baseline for a strong profile |
| Non-EU, resident in Germany | often 20 – 30% | Banks classify the risk as higher |
| Steuerausländer (non-resident taxpayer) | typically 40 – 50% | Loan-to-value usually capped at ~50 – 60% |
These percentages are common practical guidelines (from Interhyp, urbyo, baufi-nord and others, July 2026), not legal requirements. Every bank decides individually based on your overall profile.
Compare Matching Mortgage Offers
Because terms change daily and depend heavily on your profile, it's worth comparing several providers. A rate inquiry is free and SCHUFA-neutral.
SCHUFA and Creditworthiness for Newcomers
If you're new to Germany, you often don't have a SCHUFA history yet. That is not an automatic reason for rejection – and something quite different from a negative SCHUFA entry. The score mainly determines which bank will finance you; there is no legal minimum score. A secure income, sufficient equity or a second borrower can offset a short history.
Second Borrower
A co-applicant with good creditworthiness (for example, a spouse with an established SCHUFA record) improves your chances and terms. Both of you are then jointly and severally liable.
Building a History
Open a bank account early, and pay your bills on time. Our SCHUFA guide explains how the score works.
Proving Foreign Income and Equity
German banks accept foreign income and equity, but they require thorough documentation:
- Certified German translations of salary statements
- Tax assessments from several years and matching bank statements
- Proof of the source of your equity (anti-money-laundering requirement)
Many lenders prefer income paid in euros or a German employer. The exact documents required depend on the bank and your country of origin.
The Notary Appointment: Don't Underestimate the Language Barrier
The purchase contract is notarized in German. If you don't understand German well enough, you must bring in a sworn interpreter or provide a certified translation. Without either, the notary can refuse the notarization, or it may be invalid. Sort this out early – arranging an interpreter takes time.
Budgeting for Closing Costs in 2026
Like every buyer, you cover the closing costs from your own equity. The real estate transfer tax (Grunderwerbsteuer) varies significantly by federal state:
| Federal State | Transfer Tax |
|---|---|
| Bavaria | 3.5% |
| Baden-Württemberg | 5.0% |
| Hamburg | 5.5% |
| Berlin / Hesse | 6.0% |
| NRW / Brandenburg / Schleswig-Holstein | 6.5% |
On top of that come notary and land registry fees (around 1.5 – 2%) plus the estate agent's commission. Since 23 December 2020, as a buyer purchasing an owner-occupied apartment or single-family home, you pay at most half of the commission – typically around 2.98 to 3.57% including VAT.
Current Mortgage Rates and Subsidies
For orientation: for a ten-year fixed-interest period, effective mortgage rates in July 2026 sit roughly here depending on loan-to-value (source: Interhyp, Dr. Klein):
up to 60% loan-to-value
approx. 3.59%
up to 80% loan-to-value
approx. 3.66%
above 90% loan-to-value
approx. 3.98%
Rates change daily; a higher loan-to-value makes financing more expensive. You'll find an up-to-date overview in our mortgage guide.
KfW subsidies: State funding is tied to your place of residence and owner-occupation, not your nationality. So as a foreigner living in Germany, you can be eligible; if your primary residence is outside the EU, funding is usually excluded. Details in our mortgage guide.
Common Reasons for Rejection and How to Improve Your Chances
Bring more equity. It lowers the bank's risk and is the most effective way to offset a temporary permit or a short credit history.
Show a permanent employment contract after your probation period. A stable income with a German employer convinces banks the most.
Add a second borrower. A co-applicant with good creditworthiness can tip the scales.
Compare several banks. Not every bank finances foreign profiles the same way. Rate inquiries are SCHUFA-neutral – use several.
Checklist: Documents for Foreigners
Frequently Asked Questions
Conclusion: Getting a Mortgage as a Foreigner
Your nationality is not an obstacle – what matters is your residence permit, income, equity and clean documentation. With a permanent title or a Blaue Karte EU (EU Blue Card), you're in almost the same position as a local; with a temporary title or residence abroad, you need more equity and the right bank. So compare several offers.
- Compare mortgage offers and see current terms
- General mortgage guide with the process and a worked example
- Understand SCHUFA and build your credit