Where German Buyers Go Abroad (2026): Mallorca, Austria, the Algarve and the Tax & 90/180 Reality

Published on: June 16, 2026

German buyers are one of the most powerful forces in European property, and one of the most concentrated. In the Balearic Islands, roughly four in ten foreign buyers are German, by far the largest group, and the pull of Mallorca as the "paradise island" (die Insel) shows no sign of fading despite rising prices. But Mallorca is only the most visible part of a much bigger German outbound story that stretches from the Alps to the Algarve.

This guide maps where German buyers actually go, why each destination pulls them, and, crucially, the tax reality that most German buyers misunderstand. Because here is the first thing to get straight: the "90/180-day rule" you may have read about does not apply to you as a German citizen within the EU. The real number that matters is 183.

The 90/180 myth, corrected. The Schengen 90/180-day rule limits how long non-EU nationals can stay in the Schengen area. As a German, an EU citizen with full freedom of movement, you are not subject to it in Spain, Austria, Portugal or anywhere else in the EU/Schengen. You can stay as long as you like. What does affect you is tax residency (the 183-day rule) and your obligations toward the German tax authorities. We cover both below.

Where German buyers go

Mallorca and the Balearics, the heartland

Mallorca is the spiritual home of German property buying abroad, to the point where parts of the island function in German as much as Spanish. Germans are the largest single group of foreign buyers in the Balearics by a wide margin, recent data puts them at around 40% of foreign purchases, with the UK a distant second. Hotspots cluster around Palma, Calviá (Peguera, Santa Ponsa), Andratx and Llucmajor, spanning everything from sub-€300,000 apartments to multi-million-euro villas. Prices have risen sharply, the market has tilted toward luxury, and a large share of purchases are cash, but demand has not cooled.

Austria, the quiet number one

Austria rarely makes the "buying abroad" headlines, yet it is the most popular emigration destination for Germans in Europe, with around 239,500 Germans resident. The logic is obvious: a shared language, a short drive home, and an Alpine lifestyle that needs no adjustment. Important caveat for buyers: Austria has some of the strictest rules on foreign and second-home property ownership (the Grundverkehr rules), which vary by federal state (especially in Tyrol, Salzburg and Vorarlberg). For Germans this is more navigable than for non-EU buyers, but it is a real layer of due diligence, not a free-for-all.

The Canary Islands, the winter-sun choice

For Germans who want year-round warmth, the Canaries are the answer, and German buyers lead foreign interest in Tenerife and Gran Canaria (around 24–25% of foreign viewings in the main provinces). The appeal is climate first, a reliable winter escape, plus established German-speaking communities and direct flights. Popular for both holiday homes and full relocation by retirees.

The Algarve, the value retirement coast

Portugal's Algarve has long attracted Germans seeking climate and value in a more relaxed setting than Mallorca, with a strong and growing retiree presence. Portugal's accessible healthcare (the SNS, once resident) and historically welcoming residency framework added to the draw. The Algarve typically offers more property for the money than the Balearics, which appeals to buyers prioritising space and lifestyle over prestige.

The Costa Blanca, the affordable mainland

The Costa Blanca (Alicante province, Moraira, Jávea, Dénia, Torrevieja) is the German buyer's affordable-mainland choice, with established communities, good infrastructure and a price point well below the Balearics. Germans are consistently a top-three foreign buyer group here, alongside Dutch and British buyers.

The tax reality every German buyer must understand

This is where good intentions meet hard rules. The key concepts:

1. The 183-day rule (tax residency). If you spend more than 183 days in a calendar year in another country, you generally become tax resident there, which can bring that country's worldwide-income taxation into play. Spend less, keep strong ties to Germany, and you typically remain German-tax-resident. The 183-day line is the one to watch, not the Schengen 90/180.

2. German tax liability follows residence and habitual abode. Germany taxes you on worldwide income while you have a residence (Wohnsitz) or habitual abode (gewöhnlicher Aufenthalt) there. Buying abroad does not automatically end German tax liability, and keeping a German home while living abroad can leave you taxable in both places.

3. Double-taxation treaties (Doppelbesteuerungsabkommen). Germany has treaties with Spain, Austria, Portugal and most destinations that determine which country taxes what, typically, rental income and gains from foreign property are taxed where the property is, with relief to avoid being taxed twice. The treaty, not your assumption, decides.

4. Owning vs. living are different questions. You can own a holiday home abroad indefinitely with no residency or 183-day concern, as long as you don't cross the residency thresholds. The tax picture changes when you relocate and shift your centre of life.

5. Local property taxes still apply. Purchase taxes, annual property taxes (e.g. Spain's IBI), and wealth-tax regimes in some regions apply regardless of where you are tax-resident.

The practical message: the visa question is a non-issue for Germans in the EU; the tax question is the real one. Before buying, and especially before relocating, map your days, your German ties, and the relevant double-taxation treaty with a cross-border tax adviser.

Frequently asked questions

Does the 90/180-day rule apply to German buyers?
No. The Schengen 90/180 rule is for non-EU nationals. As an EU citizen you have freedom of movement and can stay in Spain, Austria or Portugal without that limit. The number that matters for you is the 183-day tax-residency threshold.

Where do most Germans buy property abroad?
Mallorca and the Balearics dominate (around 40% of foreign buyers), with Austria the top relocation destination, plus the Canary Islands, the Algarve and the Costa Blanca.

Will I have to pay tax in two countries?
Double-taxation treaties between Germany and these countries are designed to prevent that, generally taxing foreign-property rental income and gains where the property is, with relief in Germany. Get advice on your specific situation.

Can I own a holiday home abroad without becoming tax resident there?
Yes, owning property does not make you tax resident. Crossing the 183-day threshold (or shifting your centre of life) is what changes your tax status.

Why a cross-border view serves German buyers

The classic German buying journey starts and often ends on Mallorca, but the buyer who only sees Mallorca never learns that the Algarve offers more space for the money, that the Canaries solve the winter-sun problem better, or that Austria avoids the language adjustment entirely. And almost none of the German-language portals or local agents put the tax reality next to the property.

JanusHermes gives German buyers the comparison they rarely get: Mallorca against the Algarve against the Canaries against the Costa Blanca, in English and German, with the purchase process, residency, and the 183-day tax reality laid out alongside the listings. The decision becomes informed, not just aspirational. Explore listings and country intelligence on JanusHermes.

This is general information for international buyers, not tax, legal or immigration advice. Tax residency, double-taxation treaties and regional property rules are complex and change. German buyers planning to relocate should consult a qualified cross-border tax adviser before acting.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.