Settled in Germany
4guides
The German property purchase from reservation to Grundbuch — costs, financing and ownership realities.
How buying property works in Germany — and why the Notar runs itEvery German property purchase must be notarised — the Notar drafts the contract, reads it aloud at the signing, and handles the Grundbuch (land registry) entry. Between signing and becoming the registered owner, months can pass.
The 10–12% on top: purchase taxes and feesBeyond the purchase price, budget roughly 10–12% extra: Grunderwerbsteuer (property transfer tax of 3.5–6.5% depending on Bundesland), Notar and Grundbuch fees, and often an estate agent's commission.
Baufinanzierung: how German mortgages actually workGerman mortgages typically fix the interest rate for 10–20 years (Zinsbindung) with a chosen initial repayment rate (Tilgung). Foreign residents can borrow, but banks look hard at permanent status, Schufa history, and equity.
Owning a flat: Hausgeld, the WEG and shared decisionsBuying an apartment means joining a Wohnungseigentümergemeinschaft (WEG) — the owners' association. You pay monthly Hausgeld for building running costs and reserves, and major decisions are taken by majority vote at the Eigentümerversammlung.