Buy real estate in Nuremberg (2024)

FAQs

Does it make sense to buy property in Germany? ›

Renowned for its stable economy, strong legal system, and commitment to quality living, buying property in Germany as a foreigner is a secure and reliable investment, and you can benefit from rising house prices.

If you don't live and work in Germany, you might need a deposit of at least 40% of the property's value. Some banks will require you to earn a minimum amount per year to get a mortgage (for example, €20,000), and lenders will usually require that your mortgage repayments won't be more than 35% of your monthly income.

Foreigners can buy real estate in Germany. There is no visa requirement to buy a house in Germany. Foreigners need a valid visa to get a mortgage from a German bank. Price atlas from Homeday or Immobilienscout24 will give you a good idea of house prices in a particular location.

FRANKFURT, March 22 (Reuters) - Residential property prices in Germany dropped 8.4% in 2023 from a year earlier, data on Friday showed, in a further grim sign for the real-estate sector in Europe's largest economy.

Higher transaction taxes make real estate a more expensive and less liquid asset. The lack of mortgage tax deductions is tax-efficient but raises financing costs, and social housing rentals provide a low-cost alternative to homeownership.

The good news is that property tax rates in Germany are generally low, typically ranging from 0.26% to 1%. However, the specific rate for a particular property will vary depending on the location, the type of property, and the value of the property.

Real property tax (Grundsteuer)

Payable to your local tax office (Finanzamt), this annual municipal tax is mandatory for all property owners in Germany. The amount payable is calculated by multiplying the assessed value of the property with the local tax rate (somewhere between 0,26% and 1%).

Initially, buyer-only commission rates only varied regionally, from 4% or 5% in low-commission regions to 6% in regions with the highest commissions. After the reform, many agents charged both buyers and sellers 3% each, often increasing the total commission rate from 4% or 5% to 6%.

Is it cheaper to live in the US or Germany? ›

Cost of living in Germany vs the USA

If you're a US citizen moving to Germany, you'll be pleased to know that the cost of living in Germany is about 21% cheaper than in the USA. This is because the costs of food, rent, utilities and education are significantly lower in Germany than in the USA.

The average price of detached and duplex houses in the biggest cities in Germany varied between approximately 5,000 euros and 10,000 euros per square meter in the second quarter of 2023. Housing was most expensive in Munich, where the square meter price of houses amounted to 9,931 euros.

Berlin is our number one choice for buying and selling property in Germany in 2023, as it combines the best of both worlds: a high demand and a low price. Berlin is Germany's capital and largest city, and it is a political and cultural powerhouse.

If you're an American citizen planning to retire in Germany, it's possible to enter Germany without any visa, for a stay of up to 90 days, and apply for a residence visa during that time. However, it's usually best to apply in your local consulate before you travel, to avoid any delays or issues.

The time between first visit of the house and finally taking over the keys is a process which can take anywhere between four weeks and several months – depending upon how fast buyer & seller can come to an agreement, how fast you get financing in place and how long the court takes to change the land register.

Germany. Germany's housing supply crunch paired with negative interest rates have transformed its real estate sector. Transaction volumes hit a record high in 2021, driven by foreign capital inflow. Germany offers stability and upside as Europe's largest economy with a high quality of life.

Real property tax (Grundsteuer)

Payable to your local tax office (Finanzamt), this annual municipal tax is mandatory for all property owners in Germany. The amount payable is calculated by multiplying the assessed value of the property with the local tax rate (somewhere between 0,26% and 1%).

First, the purchase of real estate in itself is not a reason for issuing a visa or residence permit. However, the property owner may apply for a visa, residence permit or citizenship.

Between 2008 and 2022, the homeownership rate in Germany decreased slightly. In 2022, about 46.7 percent of the population lived in an owner-occupied dwelling. This makes Germany one of the countries with the lowest homeownership rate and the biggest rental residential real estate market in Europe.