Our Guide on Renting or Buying a Home in Germany

Jump right in:

• Renting a house or apartment
• How to find housing to rent in Germany
• Average rent in Germany
• Short-term rentals
• Real estate agencies and the rental process in Germany
• Buying property as a foreigner
• Utilities
• Internet

Renting a house or apartment

Housing shortages in popular German cities, especially Berlin, could present a problem If you’re looking for available options to rent.

Things to know

• First-hand knowledge of the city and its neighborhoods (or thorough online research of Germany’s cities and their rental processes and rules) will help.
• If you plan to move to Germany before finding somewhere to live, which is not recommended, the sharing economy provides monthly furnished rentals where you can stay until you find something more permanent. 
• Make sure you have proper access to public transport (if you plan to rely on it) and that nearby parking is available if you’ll drive a car.
• Furnished apartments are the exception in Germany.

You can find more about the requirements and documents needed for renting in the following section of this guide — "What documents do you need for renting?".

In addition, you can find out about agency fees, rental contracts, and deposit requirements in the following section — “Real estate agencies and the rental process in Germany”.

How to find housing to rent in Germany

Before you move, you can use German property websites, usually available in multiple languages. Once you’ve arrived, there are hot properties to spot in local newspapers and magazines. 

Real estate ads in local newspapers

Most local German newspapers have a classified ad section dedicated to short-term and long-term rentals and real estate (Immobilienmarkt) in their Saturday or Sunday issue. It’s worth having a look at the offers, simply to get a general idea of local real estate prices.

Don’t hesitate to call the landlord if you haven’t yet signed on with a real estate agency. After all, competition for apartments is high, especially if they’re not offered by real estate agencies and thus come without extra fees for the agent.

Abbreviations in ads explained

To make things easier for you, below is a list of abbreviations used in real estate listings. Keep in mind that “empty” apartments come without furniture, carpeting, or household appliances (sometimes even without a kitchen) unless the former tenants are willing to leave them to you, usually for a payment in cash (Ablöse).

Don’t be surprised to read about half a room in these ads. Many classifieds refer to apartments with rooms smaller than ten square meters as “half rooms”.

Therefore, a half-room apartment actually has two rooms, one of which is rather small but could still be used as an office, for instance. In real estate ads, bathrooms and the kitchen are not counted as “rooms”.

Cooperatives (Wohnungsgenossenschaften)

Wohnungsgenossenschaften are not to be confused with Wohngemeinschaften (flat sharing). Cooperatives are subsidized organizations that administrate several apartment buildings and rent out apartments.

Cooperatives consist of their member-tenants and the administrative body. Their apartments usually come at a reasonable price. Some cooperatives focus on providing housing to individuals and families with a low income. To qualify, you need to present a statement from the town hall which entitles you to rent a subsidized flat (Wohnberechtigungsschein).

Online ads

The number of German commercial real estate sites on the internet can be overwhelming. These sites, full of classified ads, are also an easy way to find the websites of individual real estate agents, whose listings are a good starting point to get an overview of the local market. Moreover, the advantage of online ads over ads in local newspapers is that they are usually up to date.

Here is a small selection of some popular real estate websites in Germany:

• Immobilienscout24
• Immonet
• Planethome
• Immobilien.de
• Immowelt
• Housinganywhere
• spotahome

Average rent in Germany

Since rent prices in Germany are quite it is common for students or people who come to live in Germany alone, it’s common to choose to rent out a room within a shared apartment.

Below you can find the average rent prices for apartments outside centre in most popular German cities:

Short-term rentals

Short-term rentals are a popular option in Germany. While renting out a hotel, Airbnb, or traditional apartment can always be a solution, sublets are quite popular among Germans and expats, as there is always someone away from their home who wants to save a few months of rent. Short-term housing is usually furnished and comes with all amenities, additionally it is much cheaper than staying in hotels.

Sites for short-term apartments:

• Airbnb
• Flatio
• Spotahome
• Wunderflats
• HousingAnywhere

Real estate agencies and the rental process in Germany

The most convenient way of renting an apartment is to hire a German real estate agent (Makler) who will take care of everything. The Makler provides a variety of services, including offers for empty lots, houses, and apartments for rent on a long or short-term lease. In Germany, each offer is only accessible via one single agent or company, whether for rental apartments or property. Therefore, you might be asked to sign an agreement beforehand.

The real estate company will ask you to confirm that anything concerning their rental apartments must be done directly with them and not with the apartment’s landlord or owner. This agreement also obligates you to pay the agent fee (Provision).

The fee cannot legally be more than two months’ net rent (Kaltmiete) plus 19% VAT. This is a considerable amount, but it is not to be confused with a security deposit (Kaution), which you must pay in addition to the real estate agent’s fee. This, on the other hand, could cost you up to three months’ rent, and can be paid over three months—any amount higher than the equivalent of three months’ rent is illegal.

Real estate agency options in Germany

• Berlin First Citiz Berlin
• Munich Spotlight Real Estate
• Munich Alpha Properties
• Berlin Invest AB
• Frankfurt Von Poll
• Cologne Zeit&Wert

Rental process fees

• Provision (agent fee): For a real estate agent’s service
• **Kaltmiete:**The fixed rent amount before utilities
•  Kaution: The security deposit If the agent belongs to a professional association, such as Ring Deutscher Makler or Immobilienverband Deutschland, it will be mentioned on their business card and website. Although such membership is by no means a 100% guarantee of their trustworthiness, it is usually a good sign.

What documents do you need for renting?

If you’re moving to Germany, you should prepare yourself to become an expert at filling in forms and managing various bits of paperwork.

You’ll need the following required documents for renting in Germany as a foreigner:

• Your ID or passport.
• A Mietschuldenfreiheitsbescheinigung—a document to prove you don’t owe previous landlords money.
• Three recent pay slips to prove you’re earning enough to pay the rent. Proof of adequate savings may be accepted.
• Bank statements from the last three months.
• Mieterselbstauskunft—this is an application form giving the prospective landlord more information about you, such as your date of birth, how many people will live in the property, and what you do for a living.
• SCHUFA – Auskunft or Bonitätsauskunft für den Vermieter—a SCHUFA-Auskunft (credit report) shows your prospective landlord your credit score. If you have only just moved to Germany, you won’t yet have a SCHUFA record. In this case, your bank statements showing a regular income and that you’ve paid rent and bills on time could be an acceptable alternative.

Buying property as a foreigner

Generally, buying a home is possible for foreigners and there are no restrictions. However, there are some downsides for expats who have decided on buying property in Germany. For instance, financing the move is more difficult when you intend to stay for a rather short period, as buying a house is regarded as a long-term investment. This also influences the high commission rates and other costs for real estate agents.

Note: you can’t buy a house in Germany to get citizenship, become a permanent resident, or get a visa. However, you can buy a property without having a German residence permit.

House prices in Germany

If you’re considering all the requirements to buy a property in Germany, you should be aware of the average prices to expect for different types of property, in different parts of the country.

• Berlin Housing Real Estate Cost: 5,450 EUR (5.740 USD) per square meter
• Frankfurt Housing Real Estate Cost: 6,100 EUR (6.440 USD) per square meter
• Cologne Housing Real Estate Cost: 4,830 EUR (5.100 USD) per sqaure meter
• Hamburg Housing Real Estate Cost: 5,560 EUR (5.850 USD) per square meter
• Stuttgart Housing Real Estate Cost: 4,520 EUR (4.760 USD) per square meter
• Munich Housing Real Estate Cost: 8,500 EUR (8.920 USD) per square meter

The prices are for existing apartments, newly built apartments tend to be x1.5 times more expensive

Note: Buying property in Germany’s east can be a lot cheaper than in popular cities, like Munich or Hamburg.

Buying property in Germany: how to prepare

If you want to avoid buying property in Germany via a real estate agency, you should look for ads that include the words “Privatverkauf” or “von Privat” (private sale).

The weekend issues of local, regional, and even national newspapers, as well as online resources, are a good starting point to find a variety of real estate offers. We recommend getting a general overview of the local market, as real estate prices vary from city to city and even neighbourhood to neighbourhood. Our city guide gives you specific information about housing in Berlin, Germany’s “poor but sexy” capital city.

Getting a loan

If you are not a German citizen, the amount of money you can loan to purchase a property might be limited to 55% to 60% of its value. Germans can get a loan of around 100% of the value of the property they want to buy. Also, to get a loan, or mortgage, from certain banks, you have to earn at least 20,000 EUR (22,250 USD) a year, and monthly repayments cannot surpass 35% of what you earn in a month, you cannot be 5 years away from retirement.

**Additional property purchase costs **

• Notary fee: 1.50 %-2,00 % (of the purchase price)
• Property transfer tax: 3,50 %-6,50 % (of the purchase price)
• Real estate commission: 0,00 %-3,57 % (of the purchase price)
• Real estate transfer tax: 3,5-6,5% (of the purchase price)
• Land registry fee: 0,5-1,2% (of the purchase price)

Different types of mortgages

• Annuity Mortgage (Annuitätendarlehen): Monthly payments of both interest and principal. 
• Interest-Only Mortgage (Tilgungsaussetzungsdarlehen):** Pay only the interest on the loan for an agreed period (usually 5-10 years).
• Variable Rate Mortgage (Variabler Zinssatz): Interest rate fluctuates based on changes in the European Central Bank’s base rate.
• Forward Loan (Forward-Darlehen): You lock in current interest rates for a mortgage that will begin at a later date.

Buying property in Germany: other real estate sources

Apart from a vast number of private agents or real estate companies, a lot of banks, especially the local _Sparkasse_n (savings banks) offer properties for sale. This can be advantageous when you plan to finance your new home.

Search for Immobilienmakler (real estate agent) use the database of the German Real Estate Association [Immobilien Verband Deutschland]. http://www.ivd.net/) Here, you can find tax advisors, public notaries, surveyors, and other experts. 

Steps to buy property in Germany

• Clarify your eligibility and budget: Foreigners are allowed to buy property in Germany without restrictions, so the first step is to define your budget, keep in mind that you’ll need an additional 10–15% on top of the purchase price for taxes and fees, and to secure mortgage pre-approval if financing is required.
• Search for a suitable property: Use online portals, real estate agents (Makler), or private listings to find a property, arrange viewings, and carefully review location, building condition, and the energy certificate (Energieausweis).
• Submit an offer: Once you’ve found the right property, make an offer to the seller. Negotiation is common, and although an accepted offer signals intent, it is not legally binding until notarized.
• Appoint a notary: A German notary (Notar) is legally required to oversee the purchase contract and ensure both parties understand the terms.
• Settle all purchase costs: Following the notary’s instructions, you pay the purchase price along with property transfer tax (Grunderwerbsteuer, which varies by state), notary and land registry fees, and any agreed real estate agent commission.
• Register ownership: Once all payments are completed, the notary registers you as the new owner in the land register (Grundbuch).
• Complete the purchase: Last steps include signing a handover protocol, registering utilities, property tax (Grundsteuer), and—if applicable—your rental activity with the tax office.

Utilities

Things to know

• Utilities are usually included in your rent total.
• Kaltmiete is rent without additional costs and Warmmiete is rent with all covered costs.
• Warmmiete includes the basic rent for the flat itself and additional costs (Nebenkosten) for waste disposal, property tax, chimney-sweeping, and some German utilities, like water or heat (Heizkosten).

Water in Germany

Costs for the water supply in your new apartment are usually included in the monthly rent (Warmmiete) or the Hausgeld for homeowners. Your landlord or the property managers base their German utilities estimate for your water bill on the potential annual consumption of your household. If your actual consumption is unusually high, the additional charges will be raised the following year.

In rare cases, when the landlord does not include water supply in rent fee, you have to get in touch with the local water supply company (kommunale Wasserwerke) in order to set up an individual contract.

A water filter often comes in handy, as the water in some regions has a high degree of lime. This is also why domestic appliances like kettles, dishwashers, and washing machines may need a little more maintenance than you’d expect.

Gas and electricity in Germany

Costs for gas may be covered by the Warmmiete, while it is rather unusual for electricity costs in Germany to be included in the additional costs.

Often, you will have to set up an individual account with your utility's provider. In an apartment block or a building with multiple flats, you should always ask the landlord or property management which company supplies them with gas, electricity, internet, and even cable TV, and choose your supplier in Germany accordingly.

However, in the most common scenario, the previous tenant will have deregistered with their German utility's supplier, and you’ll have to register anew with the provider of your choice. There is now more competition among energy providers from large international companies, like e.on, to the smaller German utility's providers, such as SWM in Munich.

Top energy providers in Germany

• E.ON
• EnBW
• Vattenfall
• RWE
• EWE AG

Choosing utility providers

Take your time to compare utility providers for gas and especially electricity, regarding prices, services, and environmentally conscious offers that support renewable energies. Consumer advice websites, like billigstrom.de and check24.de, can help you with your choice.

To change your account details or to open a new account, there aren’t many required documents to worry about. The utility provider usually needs your:

• meter number (not to be confused with the appliance number on the side of the meter);
• meter reading;
• date of transfer (i.e. the date when you move in or when your rental agreement starts);
• exact address;
• name and bank details of the current occupant;
• proof of residence (depends on the supplier). The registration process needs to be done in writing or by submitting your information on the company’s website.

Meter reading and electricity supply

Once a year, the energy provider sends their maintenance staff to read the meter. Your monthly bills are calculated via an estimate of our household’s gas and electricity consumption. Following the actual meter reading, the company or the landlord will adjust your energy bills accordingly.

In Germany, the standard electricity supply is 230 volts–50Hz AC. Please check whether your electric appliances need an adapter or transformer to function properly. Moreover, German electric sockets are made to fit the TYPE-F plug or the TYPE-C plug, which you should consider before bringing your household appliances to Germany.

Waste disposal and recycling

Costs for waste disposal are included in the Nebenkosten (additional charges) of your Warmmiete or in your homeowners’ fee.

Ask your landlord, the caretaker (Hausmeister), or property manager, about which types of bins are provided. You should separate your household waste into paper, glass, organic waste, and residual waste, and there are different bins for white, brown, and green glass. Lots of households separate tins, aluminum, and plastic bags as well. The waste bags are collected by municipal services every two to four weeks.

Internet

The internet in Germany

Telephone and internet access are mostly offered in the same package at varying monthly rates. These rates depend largely on the internet speed you opt for.

Choosing the right internet provider

In most cases, you will now have the choice between a variety of internet service providers, ranging from national companies, such as T-Online, Alice, or 1&1, to regional providers, such as M-Net (in Bavaria) or BaWue-Net (in Baden-Württemberg). When looking for a DSL provider, there are some important things to ask:

• Is the WiFi router included in the contract?
• Do you have to pay an extra installation or activation fee?
• What is the minimum term of the contract?
• How about English documentation and English-speaking tech support?

Most popular internet providers in Germany

• Deutsche Telekom
• Vodafone
• O2
• 1&1