2026-10-10 11:31

How do you transfer money to buy property in Germany?

By bank transfer from your own account or the buying company's, and only after the notary's written notice that payment is due — usually within 10–14 days of it. No German bank account is needed, but the bank, notary and broker check the origin of the full amount before the transfer — and, for clients from high-risk countries, the source of their entire wealth. Cash, crypto-assets, gold, platinum and gemstones are prohibited (§ 16a GwG), and a payment that cannot be proved to the notary delays the buyer's registration as owner.

Only the notary's notice releases the price, in several payments

The notary's due-date notice (Fälligkeitsmitteilung) arrives once the buyer's position is secured, above all by a priority notice in the land register (see Part 8 of the series German Prime Retail). The contract usually runs the payment period from the notice, and the buyer is then in default without a reminder (§ 286(2) no. 2 BGB). Default interest is 5 or 9 percentage points a year above the base rate, depending on whether a consumer is party to the deal (§ 288 BGB). A notary escrow account requires a legitimate need for security (§ 57(2) BeurkG), so a direct transfer remains the norm.

Exhibit 1. The seller and its banks share the price; the 3.5–6.5% transfer tax is paid separately

Payment	Recipient	Due
Price less the amounts for the seller's banks	Seller	Usually 10–14 days after the notary's notice
Redemption of the seller's land charges (Grundschuld)	Seller's bank	On the same date, in the amount the bank has set as its condition for release
Real estate transfer tax, 3.5–6.5%	Tax office	One month after the tax assessment notice (§ 15 GrEStG)
Notary fees and registration fee	Notary and the land registry court	As invoiced
Broker's commission, if the buyer has promised it	Broker	Under the brokerage agreement

German contracts usually state the price in euros, so a buyer who converts later bears the exchange-rate risk between signing and the due date.

If a GmbH buys, the money passes through the company first

A buying GmbH pays from its own account, so the investor's money must first reach the company. Before registration, that means at least €12,500 of share capital (§ 7(2) GmbHG); then a shareholder loan (Gesellschafterdarlehen), with the agreement signed before the funds move (Part 9). The company's bank checks every incoming transfer as it would the payment to the seller. Payments from abroad above €50,000 are reported to the Bundesbank by the German recipient — a resident seller or your GmbH (§ 67 AWV) — for balance-of-payments statistics, not as an approval.

The origin of the money is checked before the transfer, not after

The bank, the notary and the broker each identify the parties and their beneficial owners independently (§§ 10, 11 GwG); if the checks cannot be completed, the deal cannot go ahead (§ 10(9) GwG). The recipient's bank in the EU checks that a transfer from outside the EU carries the payer's name, account number and address (Articles 4 and 7 of Regulation (EU) 2023/1113). A payment from someone else's account is therefore apparent at once. Gather the documents in advance: bank statements, contracts for the sale of earlier assets, dividend resolutions, tax returns, loan agreements and inheritance documents.

Residents of countries on the EU list of high-risk third countries — Russia among them since 29 January 2026 — face stricter rules. The law requires information on the source of funds and of the entire wealth of the client and of the beneficial owner (§ 15(3) no. 2 and (5) GwG). In such transactions the notary must, as a rule, report to the Financial Intelligence Unit (FIU; §§ 3, 7 GwGMeldV-Immobilien).

EU banks do not accept deposits above €100,000 per credit institution from Russian nationals, persons residing in Russia, Russian companies, or companies outside the EU more than 50% owned by such persons. Nationals of EU and EEA states and of Switzerland, and holders of a residence permit there, are exempt (Article 5b of Regulation (EU) No 833/2014). Persons on EU sanctions lists cannot acquire German property at all (Regulation (EU) No 269/2014). Cash of €10,000 or more must be declared to customs when crossing the EU's external border (Article 3 of Regulation (EU) 2018/1672) — and still cannot be used for the purchase.

Implications for investors

1. Pay only from your own account or the buying company's. A payment from someone else's account is apparent at once, and one that cannot be proved to the notary delays your registration as owner.

2. Document the origin of the money before the first transfer. The checks cover the full amount and, for residents of high-risk third countries such as Russia, the source of their entire wealth.

3. Plan for the deadline and the exchange rate. The price is usually due 10–14 days after the notary's notice, and where the contract runs the period from it, default follows without a reminder. If you convert late, the exchange-rate risk is yours.

What to check:
• Make sure the payment comes from your own account or the buying company's, not a relative's or a partner's.
• Gather documents on the origin of the full amount and, for a GmbH, sign the shareholder loan agreement — before the first transfer.
• Decide when, and at what rate, to convert your money if it is not in euros.
• Take the payment details of the seller and its banks from the contract and the notary's notice, not from an e-mail.
• Ask the bank to confirm every payment, for the notary.

Sources: §§ 10, 11, 15, 16a GwG; §§ 3, 7 GwGMeldV-Immobilien; § 57(2) BeurkG; §§ 286, 288 BGB; § 15 GrEStG; § 7(2) GmbHG; § 67 AWV; Commission Delegated Regulation (EU) 2026/46; Regulation (EU) 2023/1113, Articles 4 and 7; Regulation (EU) 2018/1672, Article 3; Council Regulation (EU) No 833/2014, Article 5b (consolidated version of 24 July 2026); Council Regulation (EU) No 269/2014. Legal position as of October 2026.

Photo: Jan-Philipp Thiele / Unsplash

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

Ilya Gordon