How much cash do I really need to buy property in Germany?
The #1 question buyers ask: “How much cash do I really need to buy property in Germany?”
Germany attracts investors for a simple reason: it’s structured, regulated, and built for long-term ownership. But Germany also surprises buyers with one thing that dominates search and conversations:
The true cost is not just the purchase price.
It’s the “Nebenkosten” - the extra costs you pay on top.
Why this question is trending right now
Because the market is shifting again.
Reuters reported that German residential prices rose for the fourth straight quarter, up 3.3% year-on-year (Q3 2025 vs Q3 2024), signaling recovery after a downturn.
At the same time, housing supply is tight: Reuters also reported residential building permits fell to the lowest level since 2010 in 2024.
When prices stabilize and supply stays constrained, buyers ask:
- “Is it getting expensive again?”
- “Should I buy now?”
- and most of all: “How much cash do I need upfront?”
The real cash requirement most foreigners underestimate
In Germany, you typically need to budget for these additional costs:
- Property transfer tax (Grunderwerbsteuer): 3.5% to 6.5% depending on the state
- Notary fees: commonly around 1.5% to 2%
- Agent commission (if applicable): varies, and can be significant
Hypofriend lays out these ranges clearly, including how the transfer tax changes by state.
Expatica also summarizes the cost categories buyers should expect in Germany (including transfer tax, notary, and agent fees).
Practical takeaway:
- Even if your mortgage covers the property price, you often still need cash for these extras.
Can foreigners buy property in Germany?
Yes - foreigners can buy property in Germany, and guides for expats outline the process and requirements.
Financing depends on your profile (income, residency status, documentation), but mortgages for foreigners are possible.
A simple Germany buying roadmap (how we keep it smooth)
- 1) Budget properly: purchase price + full Nebenkosten estimate
- 2) Financing clarity: bank/broker pre-check before you start viewings
- 3) Find the asset: location, building condition, rental logic if it’s investment
- 4) Offer + negotiation
- 5) Notary contract (Kaufvertrag): formal, structured, and legally binding
- 6) Transfer tax + registration: then ownership finalizes
If you’re buying for investment, the “right property” in Germany is usually the one with:
- stable tenant demand
- realistic maintenance expectations
- and numbers that still work even with conservative rent assumptions
Germany isn’t a “quick flip” market. It’s a capital-preservation + long-term compounding market. And the smartest buyers win by mastering the upfront cost structure first.