- The highest additional cost of buying a home in Germany.
- You’ll usually need to pay between 3.5% and 6.5% of the purchase price.
- https://hypofriend.de/en/property-transfer-tax.fhd
- Pay it within four weeks of finalizing your purchase.
- Once paid, the transfer of ownership of the property can be registered in the German land registry (Grundbuch).
- Use an online platform to simplify the taxation process:
- Around 1.5% - 2% of the property’s purchase price.
- Split Immobilienmakler fees with the seller.
- 6% plus VAT – totaling 7.14%.
- Or 3.57% each for the seller and the buyer.
- Find all mortgage options in advance.
- German banks that offer mortgages include:
- Commerzbank
- Deutsche Bank
- DKB
- Postbank
- Santander
- Hypovereinsbank
- Ask if they have an English-speaking staff member who can help you.
- Get a mortgage agreement in principle (pre-approval) from a bank.
- Downpayment: 20%
- Mortgage repayments won't be more than 35% of your monthly income.
- Some banks might ask me insurance for this, just in case if I fall seriously ill or die.
- Might be required if I am the sole earner in a family or if I borrow at a high loan-to-value level.
- Fixed-rate mortgages for 10 years.
- After 10 years, you can then refinance the loan at whatever the market rates are at that time.
- Hypofriend
- https://www.baufi24.de/en/mortgage
- Analyze house prices and property types in the area before searching.
- Buying a property that I'll need to renovate? Find out about the local building rules and regulations.
- Visit a potential property at different times of the day to get an idea of things such as noise pollution and traffic levels.
- Consider taking a friend along for a second opinion.
Note
Before searching for a German property, it’s a good idea to get an informal mortgage agreement in principle (pre-approval).
- Immobilienscout24
- Immonet
- Immowelt
- If I need an independent property survey to check for any problems with the building, I should do this before signing the contract to buy the home.
- The Royal Institute of Chartered Surveyors (RICS) provides a list of surveyors in Germany.
- Reservation fee (0.5% to 1% of the property’s price).
- Property will be taken off the market.
- Reservation period: 2 or 4 weeks.
- During this time we have to finalize our mortgage.
- Documents from the seller confirming the property’s details.
- Documents confirming my identification and income.
- Submitted my application.
- Mortgage lender takes up to 10 days to process it.
- Shop around for a notary and surveyor (if required).
- Do NOT necessarily choose the ones recommended by the estate agent.
- Agree on a notary with the seller to progress the legal elements of the transaction.
- The notary will draft the final purchase contract.
- A 14-day cooling-off period before it can be signed.
- Then attend the notary's office in person with the seller.
- I need a translator to come to this meeting with you.
- Notary will provide a priority notice to the land registry, registering an intention for the property to be transferred into my name.
- The estate agent's fee.
- Notary's fee.
- Some weeks, the notary will set a date for me to transfer the full purchase amount to the seller.
- Transfer tax bill, which must be paid within four weeks.
- After land registry transfer is complete -- some weeks after you get the keys and move in.
- Gas & water.
- Internet.
- Cost of any damage to the structure of the property -- for example, due to fire or flooding.
- For apartments I might not need this since it might be shared between all owners in the building.
- Contents insurance: protection against damage to or theft of your belongings, ain't required by law.
https://www.expatica.com/de/housing/buying/buying-a-german-property-100945/
Based on your situation—being an expat without permanent residency, working in software engineering, wanting good life quality, strong transport connections, and affordability—here are the main considerations and recommendations:
Mortgage Accessibility: Unfortunately, most German banks generally require at least permanent residency to grant a mortgage to expats. Without this, it can be very hard to secure a home loan from a traditional lender, so unless you have access to alternative financing or enough savings, purchasing property may be delayed until you obtain permanent residency 1.
Rental Demand: Cities with universities, strong economies, and growing populations typically have robust rental markets. This means places like Berlin, Hamburg, Munich, and some fast-growing mid-sized cities are attractive for finding tenants—even if you work remotely.
Transport Connectivity: Major and “tier 2” cities (like Hannover and Wolfsburg) generally have very good public transport and easy access to national/international rail and autobahn networks 7 9. Bigger cities usually have airports or are near them.
IT Job Market: While traditional tech hotspots are Berlin, Munich, and Hamburg, mid-sized cities such as Hannover, Wolfsburg, and Leipzig also offer IT opportunities with lower living costs.
Affordability: Major cities (Berlin, Munich, Hamburg, Frankfurt) are typically much more expensive, possibly exceeding €300,000 for a good apartment or house 2. In contrast, cities like Hannover and Wolfsburg tend to have more affordable housing markets and still offer good infrastructure and job opportunities in tech 3 9.
Recommendations:
Key Caveat:
Keep in mind that without permanent residency, obtaining a mortgage in Germany is generally not possible through most banks. If you have other means (large down payment, foreign financing, etc.), this could change your options 1.
Summary: Hannover and Wolfsburg are your best bets given your budget, work needs, and transport requirements, but you may need to wait for permanent residency to get a local mortgage. These cities are well-connected, not too expensive, and have solid tech and rental markets 3 7 9 1.