If you attempt to buy a home in Germany…

If you think about buying a home in Germany, there are some minor things to consider.

First: There are no federal legal restrictions for Non-Residents to buy property in Germany. Local law does not restrict Non-Residents either.

Second: The process to buy a home is very formalized. You will need to sign a contract at a notary public. There are no exceptions to that rule. This means that (a) you will need to be in front of a notary public in person (b) the contract will not be binding until you have signed (c) once signed, there are only limited ways to get out of the deal (d) the home is not yours until it has been registered under your name.

Third: Depending on the location of the property, different Real Estate Transfer Tax (RETT) tax rates apply. These rates vary from 3.5% (Bavaria) to 6.5 % of the purchase price. The payment of the tax is a requirement to the property registered under your name.

Fourth: As of 2023 the Real Estate Taxes are very low in Germany. However, this might change as of Jan 1st 2025. It is not yet clear, which tax rates will apply from that day on.

Fifth: There is an obligation to insure your property. Other than that, no legal restrictions apply.

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