Germany in 2026: what changed for foreign buyers

Germany does not restrict foreign buyers, and no rule in 2026 changed that. What did change is the surrounding framework: rent rules, short-term rentals, property tax and the anti-money-laundering regime. This briefing lists what we found as of 12 October 2026, mostly from news reports and advisory summaries, and flags what we could not confirm.

Rent brake extended to the end of 2029

The Bundestag voted in June 2025 to extend the rent brake in tight housing markets until the end of 2029. In the designated areas a new tenancy may be at most ten percent above the local comparative rent. A legal news report on the vote is here. For an investor this matters for the yield on a flat to let: a buyer should check whether the property lies in a designated area and how the last rent compares with the local benchmark. The areas are set by each state, so look them up.

EU rules for short-term rentals from 20 May 2026

Regulation (EU) 2024/1028 on short-term accommodation rentals is reported to apply from 20 May 2026. It requires hosts to obtain a registration number and display it, and platforms to share monthly activity data with national contact points. Summaries note that the Regulation limits how national rules can ask platforms for data, and that German states and cities, which run their own misuse-of-housing rules, are adjusting. We did not check how each state or city has aligned its law, so ask a local lawyer before an investor buys a flat with a holiday-let plan. Berlin, Munich, Hamburg and other cities have long had restrictions of their own.

Property tax reform shows up in bills

The reformed property tax (Grundsteuer) has applied since 1 January 2025, based on new model values rather than the values of 1964 in the west and 1935 in the east. Summaries say the effect becomes visible to tenants in 2026 when utility bills carry the new amounts for the first time, and that some properties saw increases of 50 percent or more. Tell buyers to ask for the current assessment and to budget for it.

Transfer-tax talk, but no change found

The transfer tax (Grunderwerbsteuer) is set by each federal state, in a range of about 3.5 to 6.5 percent. Summaries report discussions about giving states more room to relieve buyers of owner-occupied homes, for example through an exemption for first-time buyers, and about tightening the rules on share deals. We found no enacted change. Do not tell a client that a relief exists unless a lawyer confirms it.

Anti-money-laundering rules ahead

Agents already carry duties under the German Money Laundering Act, see our briefing on serving expat buyers. Looking ahead, Regulation (EU) 2024/1624 is reported to apply from 10 July 2027 and to name real estate professionals as obliged entities, with due diligence for occasional transactions of 10,000 euro or more according to legal-tech summaries; the date and the threshold should be checked against the text. Agencies are well advised to build a clean file routine now.

Notaries also check the transparency register for beneficial owners before drafting when a company or trust buys, and one summary says beneficial owners may need to be registered a month earlier.

Sanctions

The 2024 Court of Justice ruling stays relevant: notarising the sale of a flat owned by an unlisted Russian company is not the legal advice that the EU ban forbids. Notaries and agents must still check sanctions lists and the parties. Do not refuse a file because of nationality and do not skip checks.

Residence

As far as we know there is still no residence permit in Germany granted for buying property. Do not present a purchase as a route to residence; send clients to an immigration lawyer.

Four questions buyers ask in 2026

• Can a foreigner buy? Yes, on the same footing as a resident, with no permit reported.
• Does buying give residence? As far as we know, no; see the immigration note below.
• How long does it take? Summaries describe eight to twelve weeks from offer to the land-register entry, see our briefing on payments and remote closing.
• What does it cost on top of the price? Summaries give roughly 9 to 13 percent including the transfer tax, the notary, the land register and the agent, with the transfer tax depending on the state.

Nothing new, but often misunderstood

• the agent's fee for homes has been shared equally between buyer and seller under the rules in force since December 2020; confirm the current law for the type of property
• foreign buyers pay the same transfer tax as residents
• lenders are stricter with non-EU buyers who have no permanent permit, which is practice rather than law

What to do now

• date every statement you give a client
• check whether a flat lies in a rent-brake area before you describe the yield
• review any short-let advice against the new EU registration rules
• tighten your file for company and trust buyers
• keep a list of questions for your lawyer: local short-let rules, transfer-tax relief, financing for non-EU buyers

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.