Market comparisons
Germany vs the world
How the German housing market compares with the one you know from home. Two views per country: how the market works, from ownership rates to tenant law, and what its rules mean for property investors. Neutral, deeply sourced, and written for internationals in Germany.
All eleven markets, side by side: property investing
The property-investing view, financing, tax, and the exit, for every country in the series. Figures as of mid-2026; click "Full comparison" under any country to pick which article to read.
| Dimension | Germany | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Read more | ||||||||||||
| Financing | ~4 to 5% for investment loans, fixed 10 to 15 years | 30-year fully fixed; investment rates ~7.1 to 7.6% | BTL ~5.4% avg (best ~4%), 2 to 5-year fixes | ~90% fixed, 10 to 25-year terms, ~3.0 to 3.5% | ~7 to 8.5%, mostly floating | Cash or interest-free installments; mortgages ~18 to 26% | ~2.5 to 3.2% fixed (or variable) | ~1.5 to 2% fixed (SARON below 1.5%) | ~11% (prime 10.25%); non-resident 50% deposit | ~25 to 30%; mostly cash | Cash/USD; mortgages reviving (~29%) | ~4%, but pre-sale (off-plan) risk |
| Entry cost | ~8 to 12% (transfer tax + fees) | ~2 to 5% of price | SDLT + 5% surcharge (+2% non-resident) → ~8 to 10% | ~7 to 8% existing / ~2 to 3% new (notaire) | Stamp duty 4 to 8% + registration | Low, often informal registration | ITP 6 to 11% (resale) / IVA 10% + AJD (new) | ~0 to 3.3% transfer tax (Zurich: none) | Transfer duty 0% up to R1.1m, then to 13% | High and slow (Governor's Consent + fees) | ~6 to 9% closing (3 to 6% with exemption) | Deed tax ~1 to 3% plus modest fees |
| Rental-income tax | Marginal rate; actual costs deductible | Ordinary income (federal + state) | Income rates; no mortgage-interest deduction | Income tax + 17.2% social charges | Slab rate, after a flat 30% deduction | Progressive, up to ~25% | Reduction for long lets; 19% EU / 24% non-EU | Progressive, cantonal (Zug low, Geneva high) | Marginal rate to 45%; costs deductible | Up to ~24% | Income tax, up to ~35% | Lower rate (~10 to 20%), but ~1.5 to 2% yields |
| Depreciation | AfA (any rental) | 27.5-year straight-line | None for individuals | Yes, via LMNP (furnished) | None for individuals | None for individuals | Yes, amortización ~3% | None for private individuals | None for ordinary individuals | None for individuals | Nominal; eroded by inflation | None for individual investors |
| Capital gains at exit | Tax-free after 10 years | Taxed; 1031 defers, does not erase | 18 to 24% on residential property | Tax-free after 22 to 30 years | 12.5% LTCG (over 2 years) | None for individuals (2.5% disposal tax) | 19 to 28% + plusvalía municipal | Always taxed (cantonal, 10 to 60% by holding period) | Effective ~18% max | ~10% (reform underway) | Tax-free from 2026, no holding period | 20% on the gain (exemptions apply) |
| Ongoing property tax | Grundsteuer (light); no wealth tax | ~1% of value (2%+ in some states) | Council tax, paid by the tenant | Taxe foncière + IFI wealth tax above €1.3M | Low municipal tax | 10% of rental value; many homes exempt | IBI + wealth tax + Solidarity Tax | Wealth tax (0.1 to 0.8%) + cantonal bits | Municipal rates ~0.5 to 1.5%; no wealth tax | Land Use Charge + ground rent; no wealth tax | Bienes Personales wealth tax (shrinking) | None (0%); no wealth tax |
| Cultural attitude | Renting is normal and respected | Owning is “the American Dream” | Ownership aspiration, “the ladder” | “Invest in stone”; second-home dream | ~86% own; gold and property are the savings | Property is the store of value | “Brick culture”; foreign-buyer caution | Lowest ownership in the developed world (~36%) | Ownership aspiration in a dual market | Ownership and “build back home”; naira hedge | Property in dollars is the store of value | Property = wealth and marriage; ~90% own |
Swipe to compare all eleven countries →
All eleven markets, side by side: the housing market
Ownership, mortgages, foreign-buyer rules, and cultural defaults, for every country in the series. Figures as of mid-2026; click "Full comparison" under any country to pick which article to read.
| Dimension | Germany | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Read more | ||||||||||||
| What you own | Freehold + Grundbuch | Freehold | Freehold (leasehold common for flats) | Freehold | Freehold | Freehold (often informally held) | Freehold | Freehold | Freehold | 99-year Certificate of Occupancy (the state owns the land) | Freehold, via public deed | 70-year land lease (state owns the land; auto-renews) |
| Homeownership | ~47% (lowest in the EU) | ~66% | ~65% (falling for the young) | ~61% | ~86% (96.7% rural) | High majority own, much of it informal | ~75% (historically ~80%) | ~36% (lowest in the developed world) | Majority own; wide formal/informal gap | ~25 to 35% formal; large informal share | ~65 to 70% (traditionally) | ~90% (among the highest anywhere) |
| Typical mortgage | ~3.7% avg, fixed 10 to 15 years | 30-year fully fixed, ~6.5% | Fixed 2 or 5 years, then reverts to SVR, ~5.5% | ~90% fixed, 10 to 25-year terms, ~3.0 to 3.5% | Floating, ~7 to 8.5% | ~18 to 26%; under 1% of GDP | ~2.5 to 3.2% fixed, or variable | ~1.5 to 2% fixed; two-tier; often never fully repaid | ~11% (prime 10.25%); non-resident 50% deposit | Barely exists; ~25 to 30%, a cash market | Cash/USD; mortgages reviving (~29%) | A functioning market, ~4%, but pre-sale (off-plan) risk |
| Foreign buyers | Open, no restrictions | Open federally; FIRPTA withholding + state farmland/military-site limits | Open; 2% non-resident SDLT surcharge | Wide open, no permit needed | Open for NRIs under FEMA; agricultural land restricted | Open with conditions; FX-transfer required, Sinai restricted | Tightening; golden visa scrapped, 100% non-EU tax floated | Lex Koller, mostly barred | Open (full title; exchange control applies) | Leasehold only, with Governor's approval | Open (full ownership, public deed) | Restricted (residency + self-use only) |
| Capital gains on sale | Tax-free after 10 years | Taxed (primary-home exclusion only) | 18% (basic) / 24% (higher rate); own home exempt | Tax-free after 22 to 30 years | 12.5% LTCG (2-year hold); NRI TDS applies | None for individuals (2.5% disposal tax) | 19 to 28% + plusvalía municipal | Always taxed (cantonal, 10 to 60% by holding period) | Effective ~18% max; R3m home exclusion | ~10% (reform underway) | Tax-free from 2026, no holding period | Taxed at 20% on the gain (exemptions for a long-held primary home) |
| Annual property tax | Grundsteuer (light); no wealth tax | ~0.85 to 1.0% of value per year | Council tax, paid by the tenant | Taxe foncière + IFI wealth tax above €1.3M | Low municipal tax | 10% of rental value; many homes exempt | IBI + wealth tax + Solidarity Tax | Wealth tax (0.1 to 0.8%) + cantonal bits | Municipal rates ~0.5 to 1.5%; no wealth tax | Land Use Charge + ground rent; no wealth tax | Bienes Personales wealth tax (shrinking) | None (0%) |
| Cultural default | Renting is normal and respected | Owning is “the American Dream” | Ownership aspiration, “the ladder” | “Invest in stone”; second-home dream | ~86% own; gold and property are the savings | Property is the store of value | “Brick culture”; foreign-buyer caution | Lowest ownership in the developed world (~36%) | Ownership aspiration in a dual market | Ownership and “build back home”; naira hedge | Property in dollars is the store of value | Property = wealth and marriage |
Swipe to compare all eleven countries →
Curious how the German side works in practice? The glossary explains every German term these articles use, and the property investment simulator lets you run the numbers for yourself.