Financing and tax for overseas buyers
How German banks lend to non-residents, and which ongoing taxes apply to ownership and rental income.
Published by: HomesInGermany
Can I get a mortgage in Germany as a foreigner?
Often yes, but with a higher equity share — frequently 30–50% — and more extensive checks. Bank appetite varies considerably, so clarify early to save time.
Financing as a non-resident
German banks do lend to buyers without German residence, but typically require substantially more equity than for residents — often 30–50% of the price — and will review income evidence, frequently translated and certified.
Terms vary widely by bank, nationality and country of income. Allow more time than for a domestic purchase, and settle financing before you reserve.
Ongoing taxes and letting
Annual property tax (Grundsteuer) is levied on ownership. If you let the property, rental income is German-source income subject to limited tax liability in Germany (§ 49 EStG) even while you live abroad. Double-taxation treaties govern the relationship with your home country.
On a later sale, a taxable gain can arise within the ten-year holding window. This is a general overview — have your situation reviewed by a tax adviser before you buy.
Frequently asked questions
＋ Can I get a mortgage in Germany as a foreigner?
Often yes, but with a higher equity share — frequently 30–50% — and more extensive checks. Bank appetite varies considerably, so clarify early to save time.
＋ Do I pay German tax if I let the property?
Yes — rental income from German property is subject to limited tax liability regardless of where you live. A tax adviser can file the annual return for you.
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What you should know before you buy
Buying property in Germany: the process for overseas buyers
Buying without travelling: power of attorney and remote purchase
Purchase costs in Germany: what to budget for
These pages are general information and are not legal or tax advice. Cost and tax figures are indicative; the purchase contract and the notary's cost schedule are what bind.