2026-10-10 12:00

Can you buy property in Germany without a residence permit?

Yes. You need no residence permit to buy: the law ties ownership neither to nationality nor to residence, and a non-resident signs the same contract before the notary as someone living in Germany. Status affects other things — taxes, banking and, for Russian citizens, the €100,000 deposit limit under EU sanctions — and the purchase itself confers no right to a residence permit.

The notary checks identity and money, not residence permits

The purchase contract is notarised (§ 311b(1) BGB). Ownership passes by conveyance (Auflassung) and registration in the land register (Grundbuch; §§ 873, 925 BGB); none of these provisions requires a residence permit. The notary needs a passport — for companies, register extracts — as well as information on the beneficial owners and the source of funds (§§ 10, 11 GwG).

You need not travel: a representative can act for you. The land registry will accept the representative's authority only if the signature on the power of attorney is certified by a notary or a German consulate (§ 29 GBO). An apostille or legalisation is added, depending on the country (see Part 8 of the series German Prime Retail).

Without a residence permit, taxes and banking change

Exhibit 1. You can buy without a residence permit; tax, deposits and GmbH formation by video call differ

Question	Without a residence permit	With a residence permit
Right to buy the property	Yes	Yes
Tax on rental income from a German property	Paid in Germany on a tax return (§ 49(1) no. 6 EStG); the €12,348 basic allowance does not apply (§ 50(1) EStG)	Residence, not the permit, decides: anyone living in Germany has unlimited tax liability here (§ 1(1) EStG)
Deposits of Russian citizens at an EU bank	No more than €100,000 at one bank (Article 5b of Regulation No 833/2014)	The limit does not apply with a residence permit in the EU, EEA or Switzerland
Setting up a GmbH by video call	Only with a recognised electronic ID (eID) of an EU or EEA state	Possible with a German electronic residence permit (§ 16c BeurkG)

No tax is withheld from the rent (§ 50a(1) EStG): the non-resident files a return with the tax office where the property is located (§ 19(2) AO). A non-resident individual finds it hard to get a loan from a German bank. The standard borrower is a German limited-liability company (GmbH), even if all its shareholders live abroad (Part 9).

Buying property confers no right to a residence permit

Under the Residence Act (AufenthG), a residence permit is issued for the purposes the Act lists — study, employment and self-employment, humanitarian reasons, family reunification (§ 7(1) AufenthG). Buying property is not among them. A permit for a purpose the Act does not name is possible only "in justified cases", at the authority's discretion, and does not by itself entitle the holder to work.

The reverse also holds: a residence permit alone does not make you tax-resident in Germany — residence or habitual abode decides (§ 1(1) EStG). But a move changes the tax on interest from the shareholder loan that usually funds a GmbH. With a stake of 10% or more, the interest is taxed at progressive rates of up to 45% (§ 32d(2) no. 1 b EStG; Part 9).

Implications for investors

1. Do not build the purchase around a residence permit. The deal does not require one, and the purchase confers no right to one: buying property is not among the purposes the Residence Act lists.

2. If you cannot travel, arrange the power of attorney in advance. The land registry will accept the representative's authority only if the signature is certified by a notary or a German consulate — with an apostille or legalisation, depending on the country.

3. Model the taxes before you move, not after. A residence permit alone does not make you tax-resident, but a move to Germany changes the tax on shareholder-loan interest: with a stake of 10% or more, progressive rates of up to 45% apply.

What to check:
• your passport and proof of authority; if you will not attend, a power of attorney in the form required by § 29 GBO;
• registration with the tax office where the property is located, and the annual return;
• for Russian citizens without a residence permit in the EU, EEA or Switzerland, the €100,000 deposit limit at any one bank;
• how your country of residence taxes income from Germany and whether it credits the German tax;
• if you plan to move, the tax consequences — before the move, not after.

Sources: §§ 311b, 873, 925 BGB; § 29 GBO; § 16c BeurkG; §§ 10, 11 GwG; §§ 1, 32a, 32d, 49(1) no. 6, 50, 50a EStG; § 19 AO; § 7 AufenthG; Article 5b of Council Regulation (EU) No 833/2014 (consolidated version of 24 July 2026); the series German Prime Retail, Parts 8 and 9. Legal position as of 10 October 2026.

Photo: Jan-Philipp Thiele / Unsplash

This page is general information and not investment, legal or tax advice.

Ilya Gordon