Selling your property in Germany

Selling property in Germany can feel complicated, particularly for owners living abroad. From understanding taxes and fees to managing the notarial process and transferring proceeds internationally, there are several steps that require careful planning. This guide breaks down the essentials for selling property in Germany, helping you navigate the process confidently while protecting your net proceeds.

Understanding the Market

Germany’s property market is highly regional. Cities like Berlin, Munich and Frankfurt often sell faster and at stronger prices than smaller towns. Factors such as local supply and demand, seasonal trends and regional development plans can influence how quickly your property sells and at what price.

For international sellers, timing is even more important. Exchange rates can fluctuate significantly, so the day you receive payment in euros can affect how much you ultimately get in your home currency. Setting the right price for your property and understanding your local market is the single most important decision you’ll make when selling property in Germany.

Key Documents to Prepare

Having the right paperwork ready not only speeds up the process but also reassures potential buyers. Essential documents include:

• Title extract - Shows that you legally own the property and lists any debts, liens, or restrictions.
• Energy performance certificate - Required by law before you can advertise or sell the property.
• Floor plans, permits and reports - Buyers or their mortgage lenders often ask for these.
• Mortgage details - Needed to calculate how much you will receive after paying off any outstanding loan.

Beyond these, consider preparing receipts for any major improvements you’ve made, as these can reduce capital gains tax liability. The more organised you are, the smoother the sale will proceed especially for international transactions.

Taxes and Fees When Selling Property in Germany

Selling property in Germany involves several potential costs. Being aware of them ahead of time helps you avoid surprises and plan your net proceeds.

Capital Gains Tax

If you sell within ten years of purchase, you may be liable for capital gains tax (Spekulationssteuer). However, exemptions apply if the property was your main residence for the required period. Major renovations that increase property value can also reduce taxable gains, while routine maintenance costs are usually not deductible. Consulting a tax adviser is essential, particularly if you’re non-resident.

Estate Agent Fees

Agent commissions typically range from 3–7% of the sale price plus VAT. Since 2020, who pays the commission depends on state law and your contract, so confirm responsibilities in writing before signing.

Notary and Land Registry

Notary and land registry fees usually total around 1.5–2% of the sale price. The notary acts as an impartial public officer, formalising the contract, explaining its terms and registering the buyer in the land register. This ensures the sale is legally valid.

Other Costs

Additional expenses may include early mortgage repayment penalties (Vorfälligkeitsentschädigung), mandatory energy performance certificates (Energieausweis), or professional services (e.g., legal or tax advice). Budgeting for these can help avoid delays and ensure a smooth transaction.

The Sale Process Step by Step

Understanding the typical flow can reduce stress:

1. Valuation & Pricing - Use local comparables or hire a professional valuer to set a realistic price.
2. Marketing & Offers - List on major property portals and consider an experienced local agent to attract buyers.
3. Negotiation - Review offers carefully, paying attention to finance-dependent proposals that may involve delays or risks.
4. Notary Appointment - Both parties sign a notarised contract and the notary initiates changes in the land register.
5. Completion - Once all conditions are met and funds are transferred, ownership is officially registered and the sale is final.

Even in active markets, sales can take a few weeks. More complex or cross-border transactions may take several months, so patience and careful planning are essential.

Protecting Your Proceeds from Exchange-Rate Risk

If you’re transferring your proceeds abroad, fluctuations in currency exchange rates can significantly impact the amount you receive. Banks often offer less competitive rates than specialist brokers, who can help you:

• Monitor exchange rates and advise on timing.
• Transfer funds at better rates with lower fees.
• Lock in rates using forward contracts (up to 12 months) to remove short-term uncertainty.

Even small differences in exchange rates can save or cost thousands when dealing with high-value property sales. Planning your currency strategy in advance is just as important as preparing your documents or hiring the right agent.

Quick Tips for Sellers

To maximise your net proceeds and reduce complications:

• Confirm all costs – Include agent fees, notary and registration fees, taxes and mortgage repayment.
• Keep invoices for improvements – These can reduce taxable gains.
• Plan your currency strategy early – Set rate alerts, consider forward contracts and align transfers with completion dates.
• Confirm agent fee splits in writing – Ensure there’s clarity on who pays and VAT treatment.
• Seek tailored tax advice – Especially important for non-residents or complex estates.

Following these steps makes the selling process more predictable and helps you protect your financial outcome.

Common Questions About Selling Property in Germany

Will I pay tax if it was my main residence?

Typically not, provided conditions are met. Always confirm with a tax adviser.

Can renovation costs be deducted?

Yes, if improvements add value and are documented. Routine maintenance generally does not qualify.

Who pays the estate agent?

It depends on your contract and regional rules. Confirm responsibilities and VAT treatment before signing.

How long will the sale take?

A straightforward sale can complete in weeks; cross-border or complex transactions may take several months.

What if I’m a non-resident?

Extra reporting obligations or withholding may apply in Germany, with potential tax implications at home. Double-tax treaties may help, but specialist advice is strongly recommended.

About Regency FX

Regency FX is a UK-based independent currency broker specialising in high-value transfers. We provide:

• Dedicated account managers
• FCA-compliant segregated client accounts
• Competitive exchange-rate execution

If you’re selling property in Germany, request a free quote. Regency FX will help you protect your proceeds, reduce transfer costs and navigate exchange-rate risk with confidence.