Book an Appointment

My Real Estate

Can I Purchase Real Estate in Germany as an Expat?

Yes. Expats can purchase an apartment or a house without restrictions. Having a German bank account and a stable income are fundamental requirements for this process.

What Documents are Required for Purchasing?

Identification, proof of income, bank statements, and sometimes an employment contract.

The German notary (Notar) manages the entire legal process. The broker assists you with financing your property.

What down Payment should I Anticipate?

Generally 20–30% of the purchase price.

What Additional Costs should be Anticipated?

  • Notary fees (Notarkosten): 1.5–2%
  • Land registry fees (Grundbuch): 0.5%
  • Agency fees (Makler): 3–7%
  • Various taxes (Grunderwerbsteuer): 3.5–6.5% depending on the federal state (Land)

Should one Buy New or Existing Property?

  • New: fewer renovations, modern standards, higher price, tax advantage.
  • Existing: often lower price, renovations to be expected.

Can I Rent an Apartment without Speaking German?

Yes. Many agencies and landlords speak English. A translator may be useful for the lease agreement.

What Documents are Required for Renting?

  • Identification,
  • Employment contract,
  • Pay slips,
  • Schufa (German credit history) if available.

What is the Usual Duration of a Lease?

German leases are often open-ended, with a 3-month notice period for the tenant.

How Does the Security Deposit (Kaution) Work?

Generally 3 months’ rent. It is deposited into an escrow account and returned at the end of the lease, subject to any damages.

What Taxes Apply to an Expat Landlord?

  • Property tax (Grundsteuer)
  • Rental income tax if the property is rented out
  • Capital gains tax on resale under certain conditions

Do I Need to Declare My Rental Income in France?

Yes, if you own property in France, your rental income will be taxed in France. The France-Germany tax treaties prevent double taxation.

Are Real Estate Capital Gains Taxable?

Yes, depending on the holding period and your tax residency. The rules differ for residential and rental properties.

Can I Invest in Rental Property from Germany?

Yes. Germany offers attractive returns and interesting tax leverage for residents.

Are French SCPIs Accessible to German Residents?

Yes, some SCPIs accept German residents. Faller Finance guides you in selecting those with optimal returns and advantageous taxation.

What other Real Estate Investments are Interesting?

  • Direct rental property
  • SCPIs
  • French bare ownership property

Can I Manage a Property Remotely?

Yes, through property management companies (Hausverwaltung). They handle rent payments, maintenance, and tax regularization.

How Can I Find a Reliable Notary or Real Estate Agent?

Faller Finance can recommend reliable partners experienced with expats.

What Pitfalls should be Avoided when Purchasing Real Estate in Germany?

  • Ignoring additional costs,
  • Underestimating maintenance and charges,
  • Not verifying the tenant’s solvency if investing for rental purposes,
  • Neglecting financing and refinancing.

Buy or Rent in Germany for a French Expat?

  • Rent: more flexible, lower initial costs, allows for creating mobile assets.
  • Buy: good for capitalizing on capital gains and securing long-term housing.

Is it Worthwhile to Invest in Germany to Prepare for Retirement?

Yes. German real estate is stable and can generate supplementary rental income. A diversified strategy (France + Germany) is often optimal.

How Does Faller Finance Assist Expats with Real Estate?

We assist our clients in:

  • Identifying accessible properties and promising markets,
  • Comparing financing and tax options,
  • Securing investments and optimizing inheritance planning,
  • Preparing a comprehensive asset management strategy between France and Germany.

How Does a Mortgage Loan Work in Germany?

Generally, the bank lends for a period during which it guarantees an interest rate (10 or 15 years). At the end of this period, the rate will be renegotiated, and you will start a new 10 or 15-year cycle. French-style loans are rare and expensive.

Can I Obtain a Loan from a French Bank for a Real Estate Purchase in Germany?

It is possible but very difficult. The bank would require collateral in France, such as a property in France.