Buying in Berlin vs Australia: the real costs

Germany doesn't care what passport you hold when you buy a flat. It does care about paperwork, and the side costs in Berlin can rival NSW stamp duty.

The short version

Australians can buy property in Germany with no permit, no foreign buyer tax and no residency requirement [1].
The single biggest cost difference: Berlin's real estate transfer tax (Grunderwerbsteuer) is a flat 6% of the price [2]. On top come notary, land registry and often an agent's fee, so side costs commonly run to roughly 10% or more. In NSW, a citizen abroad pays progressive transfer duty with no foreign surcharge [3][4].
Sell a German property within 10 years and any gain is taxable, unless you lived in it yourself for the year of sale and the two years before [5].
Germany has no general foreign buyer restrictions, so a second EU passport changes little on the purchase itself. It matters more for residence and lending.

Can an Australian buy in Germany?

Yes. There are, in general, no restrictions on who can own and occupy real estate in Germany [1]. You don't need a visa, a residence permit or approval from anyone to buy a flat in Friedrichshain, a Gründerzeit apartment in Prenzlauer Berg or a newer build out in Lichtenberg. The rules that do exist for non-EU investors target stakes in companies in security-sensitive sectors, not homes.

What you can't skip is the notary. Every German property sale is signed before a notary (Notar), who reads the contract aloud, checks the land register (Grundbuch) and handles the transfer. Title only passes when you're entered in the Grundbuch [1].

Most Berlin homes Australians look at are flats in an owners' association (Eigentumswohnung, roughly Germany's version of strata title). You own your unit outright and share the building with the other owners.

Does PR or a second passport help?

Not with the purchase. German law doesn't distinguish by nationality when you buy. Where status helps is the bank: a German residence permit, a local salary and a permanent contract make lenders far more comfortable. Holding an EU passport (say, through Irish, Italian or Greek descent) can make that conversation easier too, but the tax bill is identical.

Upfront costs side by side

Rates as at November 2026. Euro amounts with AUD at the Reserve Bank of Australia rate of €0.6228 on 5 November 2026.

Cost	Berlin	Buying back home (as an Australian living abroad)
Purchase tax / stamp duty	Grunderwerbsteuer 6% of the price, in force since 1 January 2014 [2]	NSW transfer duty: A$11,602 plus 4.5% of the value over A$387,000, up to A$1.29 million (2026–27) [3]. Other states differ
Foreign buyer surcharge	None [1]	None for Australian citizens in NSW, wherever they live [4]
Notary and land registry	Statutory scale fees. Industry bodies put the notary at about 1.5–2% and the Grundbuch entry at about 0.5% of the price [6]	A conveyancer or solicitor, usually a few thousand dollars
Agent's commission paid by the buyer	Common in Berlin. If both sides pay, the law says they must pay the same amount [7]. Total commissions typically run 3.57–7.14% including VAT [6]	Optional buyer's agent; the seller normally pays the selling agent
Registration and other fees	Included in the notary and Grundbuch line above	Land registry transfer and mortgage fees of a few hundred dollars
Loan fees	Valuation is often built into the loan; the notary also charges for registering the mortgage (Grundschuld)	Application and valuation fees, possibly lenders mortgage insurance above 80% LVR

Two things to know about the Berlin column. First, the tax office won't let you onto the land register until the transfer tax is paid: the notary reports the sale within two weeks, the tax office sends you the bill, and only after payment does it issue the clearance certificate the Grundbuch needs [8]. Second, Berlin's 6% is among the higher rates in Germany, because each state sets its own.

Getting a loan

In Germany

German banks lend to foreigners, but they lend mainly against German income. If you live and work in Berlin on a residence permit with a local payslip, you're treated much like a local, and long fixed-rate periods of 10 years or more are normal. If you live elsewhere and want to buy a Berlin flat as an investment, expect fewer options, a bigger required deposit and more questions about your income.

German lenders also like you to pay the side costs (transfer tax, notary, agent) from your own savings, so the cash you need is the deposit plus roughly 10% or more on top. We couldn't find an official cap on loan-to-value for foreigners; it's set bank by bank.

Back home

Australian lenders will lend to Australians living in Germany, but expect a smaller pool of lenders, a lower maximum LVR than for residents, and some shading of your euro income for currency risk. Our guides on foreign income and deposits go through it. On the plus side, Australian citizens don't need FIRB approval to buy a home in their own name, and NSW doesn't charge you the foreign purchaser surcharge [4].

Holding costs

	Berlin	Australia (NSW example)
Annual property tax	Grundsteuer: assessed value × a federal rate × Berlin's multiplier (Hebesatz) of 470% [8]	Council rates; NSW land tax on investment property once your total land value passes the threshold
Owner-occupier	Grundsteuer applies whether you live there or not	Your main residence is generally exempt from land tax
Building costs	Monthly Hausgeld to the owners' association for maintenance, insurance and reserves	Strata levies for units; insurance for houses
Tax on rent	Rental income is subject to German income tax, including for owners who live abroad [8]	Foreign residents get no tax-free threshold, so Australian rent is taxed from the first dollar

Berlin's finance department also flags a second-home tax (Zweitwohnungsteuer) if you keep the flat as a second residence, and says holiday letting can bring extra taxes on top of income tax [8]. If you're renting it out, Berlin's tight rules on rents and short stays are worth reading before you run your yield numbers.

The Australian tax overlay

Australia and Germany have a tax treaty. If you're still an Australian tax resident, your Berlin rent goes on your Australian return and you generally get a credit for German tax paid. Most Australians who move to Berlin for work become foreign residents, but it's a test, not an automatic switch.

Selling and tax

Germany

Germany taxes a private sale of property as a "private disposal" only if you sell within 10 years of buying [5]. The gain is then added to your income and taxed at your normal rate. The exemption: if you lived in the home yourself for the whole time, or in the year of sale and the two calendar years before it, the gain is tax free even inside 10 years [5]. Hold for more than 10 years and a private seller pays no German tax on the gain.

There's no seller's stamp duty in Berlin. The buyer pays the transfer tax, though both parties are technically liable if it isn't paid [8].

Australia

Sell an Australian property while you're a foreign resident and you generally can't claim the main residence exemption, even for years you lived there, unless you pass the narrow life events test [9]. Since 1 January 2025, the buyer must withhold 15% of the price on any Australian property sale unless you hand over an ATO clearance certificate by settlement [10].

Currency risk

Buy in Berlin with euros you earn in Berlin, and the exchange rate only matters when you bring the proceeds home. Buy back home on a euro salary and every repayment is a currency bet. Neither way is safe; they're just different bets.

A worked example

Illustration only. Same budget in both places. We've used €620,000 (about A$995,500 at the 5 November 2026 RBA rate) for a Berlin flat and A$1,000,000 for a NSW home. The Berlin notary, Grundbuch and agent amounts are typical percentages, not quotes, and the agent line assumes the buyer pays half of a split commission.

Upfront cost	Berlin flat, €620,000	NSW home, A$1,000,000, Australian citizen abroad
Transfer tax / stamp duty	€37,200 (6%) [2]	A$39,187 [3]
Foreign surcharge	Nil [1]	Nil [4]
Notary and Grundbuch (about 1.5–2.5%)	€9,300 to €15,500 [6]	Conveyancing, a few thousand dollars
Buyer's half of agent fee (3.57%)	€22,134 [6][7]	Usually nil
Approximate total	€68,600 to €74,800 (about A$110,000 to A$120,000)	About A$39,000 plus conveyancing

The NSW sum: A$11,602 plus 4.5% of A$613,000. The Berlin sum: 6% of €620,000, plus the fee ranges above.

The takeaway: the transfer taxes are within a whisker of each other at this price. What makes Berlin dearer is the notary, the land register and, above all, the agent.

Which suits whom

No right answer here, just factors:

How long you'll stay. Berlin's 10-year rule rewards patience or owner-occupation. Selling an investment flat after five years means German tax on the gain.
If you're heading home. A place back home can become your residence later. Check how the main residence rules apply before you sell from overseas.
Rental plans. Berlin has strong tenant protections and rules on rents and short stays. NSW from abroad means a property manager and foreign resident tax rates.
Where you earn. Euro income lines up with a euro loan; AUD debt on a euro salary carries exchange-rate risk.
Estate planning. Assets in two countries means two legal systems. German succession rules differ from ours, so get your wills sorted in both.

Want to swap notes with Australians who've bought (or decided not to) in Berlin? Join Cooee Germany, our Facebook group for Australians in Germany, at /join/.

Buying in Berlin vs back home: what Australians really pay