Buying A Property In Germany – 3 Easy Steps

Buying A Property In Germany – The Process

The property buying process in Germany is very similar to that used in most European countries, requiring a public notary (solicitor) to oversee the transaction and register the sale with the land registry.

German Public Notaries are independent of both buyer and seller and their role is simply to carry out the transaction in the correct, legally-binding way.

Here’s an overview of buying in Germany.

 

Step 1 – Agree A Price

Once you have found a property you would like to purchase, you’ll need to negotiate with the seller and agree the terms and conditions of sale, verbally.

This process is much the same as in all countries and at this point you are not formally committed to the purchase.

 

Step 2 – Initial Contract

You will now need to engage a local, independent solicitor to oversee the drawing up of an initial contract of sale.

This will contain all the terms and conditions of sale, the completion date and the agreed price.

Any requirements for legal checks and searches will also be included here.

It’s important to note that you must have an independent solicitor to represent you in this process.

You must also ensure that they speak good English, or that you employ the services of a translator to translate both documents and conversations for you – naturally, all documentation relating to the sale will be in German.

 

Step 3 – Completion
To complete the sale, the services of a local Notary (Notar) will be required. Their role is to oversee the signing of the final contract and to register the sale with the Land Registry.

If you are not fluent in German you should also ensure a translator is present at completion.

You will need to be ready to transfer payment for the German property at this time, and will need to bring your passport with you (as well as any other documents requested).

The closing costs for the purchase will now also be due – these typically total around 7% – 10% of the purchase price, and include:

 

  • Transfer Tax (Grundwerbesteuer): Approx. 3%
  • Notary’s Fee: 1.5%
  • Estate Agent’s fee (6%, split between seller and buyer)
  • Land Tax: 1%
  • Wealth Tax for non-residents: 0.5%

There may be some other costs depending on your location – check with your solicitor or estate agent.

 

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