Buying an Apartment in Berlin as a Foreigner

Published on: August 20, 2026

Last verified: 20 August 2026. German federal and Berlin state rules in this area change frequently; confirm the current position for the specific address with the relevant district office before signing anything.

Quick answer: Germany places no restriction on foreign buyers: no permit, no minimum investment, no residency condition. The difficulty is the stock, not the buyer. Roughly 80 per cent of Berlin households rent, tenanted flats trade 20 to 30 per cent below vacant ones because the tenancy is open-ended, and own-use termination can be blocked for ten years after a conversion. Splitting buildings into condominiums needs permission city-wide under section 250 BauGB through 2030, Milieuschutz areas constrain renovation, and the Mietpreisbremse caps new-let rents. Budget 10 to 12 per cent buyer-side costs including 6 per cent transfer tax, and note title registration can trail completion by months.

Germany is one of the most open property markets in Europe. There is no restriction on foreign ownership, no permit requirement, no minimum investment, no residency condition and no golden visa attached to property. A non-resident with a passport and cleared funds can buy a Berlin apartment on the same legal footing as a German citizen.

What makes Berlin difficult is not who may buy. It is what you are buying. Berlin is a tenant city, roughly 80 per cent of households rent, and the rules that protect those tenants sit directly on top of the apartment you are looking at. A buyer who reads only the listing price will misjudge the deal by a wide margin.

This guide covers the four Berlin-specific realities, then the process, the costs and the districts. Position as of August 2026; German federal and Berlin state rules in this area change frequently.

Reality one: most flats come with a tenant

Berlin listings distinguish sharply between bezugsfrei (vacant on completion) and vermietet (tenanted). The price gap between the two is substantial, often 20 to 30 per cent or more, and it exists for a reason: a German residential tenancy is open-ended and the tenant, not the owner, controls when it ends in most circumstances.

If you buy a tenanted flat intending to live in it yourself:

• You would need to terminate for Eigenbedarf (own use), which requires a genuine, documented personal need, is subject to statutory notice periods that lengthen with tenancy duration, and can be contested.
• Where the building was converted into individual condominium units after the tenancy began, a Kündigungssperrfrist blocks own-use termination for a protected period. In Berlin that blocking period has been extended to ten years.
• Social hardship objections by the tenant can extend matters further.

The honest framing is this: a tenanted Berlin flat is an investment product with a discount attached to a long and uncertain wait. It is not a route to a cheap home.

Reality two: the conversion rules

Since 2021, section 250 of the federal Building Code (§ 250 BauGB) has allowed states to designate strained housing markets in which splitting an existing residential building into individually owned condominium units requires official permission. Berlin was the first state to use it.

Current position: the Berlin Umwandlungsverordnung under § 250 BauGB was renewed and has applied since 1 January 2026, running to 31 December 2030. It covers the whole city and applies to existing residential buildings with more than five units. Federal law takes precedence over the local social preservation ordinances, so § 172 BauGB conversion control now has independent significance mainly for buildings with five or fewer units inside a Milieuschutz area.

What this means for a buyer:

• The supply of newly created condominium units from existing buildings has fallen sharply. What is on the market is largely stock converted before the restrictions.
• If your plan involves buying a whole building and splitting it, that is a permission-dependent project, not a given. Exceptions exist, including certain sales to existing tenants and specific development scenarios, and they are narrow.
• Always confirm that the unit you are buying was lawfully created as a separate condominium unit. This is a Grundbuch and Teilungserklärung question, not something you take on trust.

Reality three: Milieuschutz constrains what you can do with your own flat

Berlin has more than eighty soziale Erhaltungsgebiete, commonly called Milieuschutz areas, concentrated in the inner districts. Roughly a third of Berliners live in one.

Inside these areas, work that would ordinarily be routine may need permission from the district office: floor plan changes, adding a second bathroom, adding a balcony or lift, certain energy retrofits beyond the required standard, and changes of use. The criterion is whether the upgrade would raise rents and displace the existing population, not whether it is good for the building.

Two further consequences:

• The municipal right of first refusal. Under § 24 BauGB a district may exercise a pre-emption right on qualifying sales, generally within two months of being shown the notarised contract. Its use was significantly restricted by federal case law in 2021 and the legal framework has been revisited since, but it is still live enough that contracts routinely make completion conditional on a negative clearance certificate. Sellers sometimes sign an Abwendungsvereinbarung, an undertaking limiting future modernisation and conversion, to avert it. If one exists, it binds you.
• Resale. Milieuschutz status narrows the pool of future buyers and caps the value-add strategies available to them, which is reflected in price.

Check the exact address against the district's map before you make an offer. Boundaries follow blocks, not neighbourhood names.

Reality four: rent regulation if you intend to let

If your plan is to rent the flat out, the letting rules are not background detail, they set your yield.

• The Mietpreisbremse caps the rent on a new tenancy in tight markets by reference to the local comparative rent, with exceptions for new build and comprehensively modernised property. It has been extended by federal legislation.
• The Mietspiegel, Berlin's official rent index, is the reference point for both new lettings and increases in existing tenancies.
• Increases within a tenancy are capped by the Kappungsgrenze over a rolling period.
• Modernisation costs can be passed to tenants only within statutory percentage and absolute caps.

Berlin's earlier city-level rent freeze, the Mietendeckel, was struck down by the Federal Constitutional Court in 2021 on competence grounds and no longer applies. It is still cited in older articles, which is a good reminder to check the publication date of anything you read about Berlin rent law.

The purchase process

German conveyancing is notary-centred and quite formal. There is no exchange-and-completion split as in England, and no escrow agent as in the United States.

1. Offer and reservation. Reservation fees are common in the market and legally fragile. Do not pay a significant one.
2. Due diligence (see checklist below). Do this before the notary appointment, not after.
3. Draft purchase contract. The notary prepares the Kaufvertrag. For consumer buyers there is a statutory review period, generally two weeks between receiving the draft and signing.
4. Notarisation. Both parties attend and the notary reads the entire contract aloud. If your German is not fluent, a sworn interpreter is required, and the cost is yours. The notary is neutral: they act for the transaction, not for you.
5. Priority notice. An Auflassungsvormerkung is entered in the land register to protect your position.
6. Conditions. Payment falls due once the notary confirms the priority notice is entered, any municipal pre-emption right has been cleared, the seller's existing charges are ready to be released, and any required consent (for example from the WEG administrator, if the deed requires it) has been given.
7. Transfer tax. You pay the Grunderwerbsteuer and the tax office issues an Unbedenklichkeitsbescheinigung, without which title cannot be registered.
8. Registration. Title passes on entry in the Grundbuch. Registration backlogs in Berlin have been long, and the gap between paying and appearing on the register can run to months.

Realistic timeline from accepted offer to notarisation: four to eight weeks. To registration: several months more.

Due diligence checklist

Costs

Ongoing: Grundsteuer (annual property tax, recalculated under the nationwide reform that took effect in 2025), Hausgeld (service charge, typically 3 to 5 euros per square metre per month), buildings insurance via the WEG, and income tax on any rent.

Financing and tax as a non-resident

Financing. German banks do lend to non-residents, but expect lower loan-to-value ratios, often 50 to 70 per cent for a buyer with no German income, and documentation requirements around foreign income. German mortgages are typically fixed for a defined period (Zinsbindung) of five to fifteen years, and early repayment within the fixed period triggers a compensation payment (Vorfälligkeitsentschädigung). Credit assessment includes a Schufa record, which a newcomer will not have.

Tax on rental income. Taxable in Germany. Non-resident owners file German returns. Deductible costs include interest, management, maintenance and depreciation (AfA), with rates that differ between older stock and newer construction.

Tax on sale. For private individuals, a gain on residential property sold within ten years of acquisition is generally taxable; after ten years it is generally tax-free. Property used by the owner personally in the year of sale and the two preceding calendar years can be exempt earlier. This ten-year rule is a major driver of German holding behaviour and should be built into your plan from the start.

Wealth tax. Germany levies none on real estate.

Where in Berlin

Frequently asked questions

Can foreigners buy property in Germany?
Yes, with no restrictions on nationality or residency, and no permit requirement. Non-EU citizens are on the same footing as EU citizens for purchase purposes.

Does buying property in Germany give me a residence permit?
No. Germany has no residence-by-investment programme, and property ownership creates no right to reside or to enter beyond the normal visa rules.

How much are the extra costs on top of the purchase price?
In Berlin, budget 10 to 12 per cent: 6 per cent transfer tax, roughly 1.5 to 2 per cent notary and registry, and the buyer's share of agent commission where one is charged.

Do I need to be in Berlin to buy?
Not necessarily. A notarised and apostilled power of attorney can allow a representative to sign for you, though some lenders and notaries prefer personal attendance.

Can I get a mortgage without German income?
Often yes, at a lower loan-to-value. Compare the total cost including the fixed-rate structure, not just the headline rate.

Can I turn the flat into a short-term rental?
Berlin regulates the misuse of residential space and short-term letting requires a permit in most cases. Assume that unlicensed short-let use is not a viable business plan.

Is buying a tenanted flat a good idea?
It can be, as an investment, if you price the tenancy correctly and do not need the flat vacant. As a route to a home for yourself, it is high-risk.

Keep reading on JanusHermes

In Berlin the buyer is unrestricted and the apartment is not, so the work is in reading the tenancy, the building's papers and the district rules before the notary appointment. JanusHermes lists property from local agencies in 11 languages, with the local agency's own contact details on every listing.

For the national picture, see buying property in Germany as a foreigner. For sibling city guides, read Paris and Rome. On the mechanics behind this market, see the civil law notary system explained, rent control around the world and tenant rights and eviction law by country.

This article is general information and not legal, tax or investment advice. Federal building and tenancy law and Berlin state ordinances in this area are amended frequently, and the conversion and pre-emption rules described here have been the subject of repeated legislative and judicial change. Confirm the current position for the specific address with the relevant district office, and take advice from a German lawyer (Rechtsanwalt) and a tax adviser (Steuerberater) before signing anything before a notary. JanusHermes accepts no liability for actions taken based on this content.

Primary sources: Section 250 of the Baugesetzbuch and the Berlin Umwandlungsverordnung in force from 1 January 2026 to 31 December 2030; sections 172 and 24 BauGB on social preservation areas and municipal pre-emption; the German Civil Code tenancy provisions on Eigenbedarf and the Berlin ten-year Kündigungssperrfrist; the Mietpreisbremse as extended by federal legislation and the Federal Constitutional Court's 2021 Mietendeckel ruling; Berlin's 6 per cent Grunderwerbsteuer; the December 2020 federal rule on sharing estate agent commission; the 2025 Grundsteuer reform; and the ten-year private sale rule in German income tax law.