Can I own property in Germany?

A citizen of Germany living abroad: Yes. A German living abroad buys like any citizen. A foreign national: Yes. No restriction on nationality or residence. The sale is a notarial deed, the buyer is entered in the land register, and transfer tax of 3.5 to 6.5 percent by state is paid; a notary can act on a notarised and apostilled Power of Attorney, so the buyer need not travel.

Who withholds tax on the rent, and how much?

No withholding at source. Yes. Rent from German property is German-source income under § 49 EStG, taxed on net rent after loan interest, depreciation, repairs and management at the progressive scale of 14 to 45 percent plus solidarity surcharge, without the basic allowance a resident gets.

How does the rent reach me in India?

Possible but selective; most German banks want a German address, and online banks and EU banks fill the gap. Rent may equally be paid to any euro account. No exchange controls. A cross-border payment of EUR 50,000 or more is reported to the Bundesbank for statistics under § 67 AWV, by the person, not the bank; it is not a tax. No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad. Euros move to India by SEPA and SWIFT with no German restriction; India has no inbound limit, taxes the rent at slab rates, credits the German tax through Form 67, and takes Schedule FA disclosure.

Renting out property in Germany while living in India

Germany's rules for a landlord living in India: ownership, the rent agreement, who withholds tax, and how the rent reaches you.

General information, not legal or tax advice. Rules change and your situation may differ. Check the sources on this page and confirm with a lawyer or accountant in the country before you act.

Desk research Last reviewed 1 October 2026 Report an inaccuracy

The short answers

Can I own property in Germany?: A citizen of Germany living abroad: Yes. A German living abroad buys like any citizen.; A foreign national: Yes. No restriction on nationality or residence. The sale is a notarial deed, the buyer is entered in the land register, and transfer tax of 3.5 to 6.5 percent by state is paid; a notary can act on a notarised and apostilled Power of Attorney, so the buyer need not travel.
Does the rent agreement need registering?: Not applicable
Who withholds tax on the rent, and how much?: No withholding at source. Yes. Rent from German property is German-source income under § 49 EStG, taxed on net rent after loan interest, depreciation, repairs and management at the progressive scale of 14 to 45 percent plus solidarity surcharge, without the basic allowance a resident gets.
How does the rent reach me in India?: Possible but selective; most German banks want a German address, and online banks and EU banks fill the gap. Rent may equally be paid to any euro account.; No exchange controls. A cross-border payment of EUR 50,000 or more is reported to the Bundesbank for statistics under § 67 AWV, by the person, not the bank; it is not a tax.; No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.; Euros move to India by SEPA and SWIFT with no German restriction; India has no inbound limit, taxes the rent at slab rates, credits the German tax through Form 67, and takes Schedule FA disclosure.

Renting out property in Germany

What applies because the property is in Germany, whoever owns it.

Who may own residential property

Who may own residential property, by audience
Citizens living in the country	Allowed Anywhere.
Residents of any nationality	Allowed Any resident, whatever their nationality, buys on the same terms as a citizen.
Citizens living abroad	Allowed A German living abroad buys like any citizen.
Foreign nationals living abroad	Allowed No restriction on nationality or residence. The sale is a notarial deed, the buyer is entered in the land register, and transfer tax of 3.5 to 6.5 percent by state is paid; a notary can act on a notarised and apostilled Power of Attorney, so the buyer need not travel.

Letting it out from abroad

May a non-resident owner let it: Yes, with no permit and no residency.
Licences, permits, landlord registration: None for a long-term let. Short-term letting needs a permit in Berlin, Munich, Hamburg and other cities with a misuse ordinance.
Local agent or representative: No. A Hausverwaltung is usual for an absent owner; nothing in law requires one. The owner must be reachable for the tenant's registration confirmation.

The rent agreement

Written agreement required: In practice yes. A lease is valid orally, but under § 550 BGB a lease for more than a year must be in writing or either side can end it after the first year, so every real lease is written.
Mandatory standard form: None mandatory. Landlord associations' forms are the norm and track the many clauses courts have struck down.
Language: German. A translation may be attached; the German text governs in court.
Registry: None. Germany has no lease registry; leases are not registered, stamped or notarised.
When registration is required: Not applicable
Who registers: No one. The landlord does give the tenant a Wohnungsgeberbestätigung, the written confirmation the tenant needs to register the address at the local office within two weeks of moving in.
Registration cost: None.
If it is not registered: A fine for a landlord who refuses the registration confirmation.
Stamp duty: None.
Notarisation and witnesses: Not applicable
E-signature: Valid under the EU eIDAS regulation. A lease of more than a year needs the written form of § 550, which electronically means a qualified e-signature by both sides; a simple platform signature leaves the lease terminable after a year rather than void.
The usual term: Open-ended. Fixed terms are allowed only for stated reasons, so most leases run until one side gives notice.

Rules the agreement must respect

Deposit: Capped at three months' net cold rent under § 551 BGB, payable in three monthly instalments and held by the landlord in a separate interest-bearing account.
Rent increases: Not above the local comparative rent, by at most 20 percent in three years, 15 percent in tight markets, under § 558; a new lease in a designated area may not exceed the comparative rent by more than ten percent under the rent brake, which runs to the end of 2029. Index and graduated rents are the alternatives.
Notice periods: A tenant gives three months. A landlord needs a legal ground, most often own use, and gives three months rising to six and nine after five and eight years; the tenant can object on hardship.
Disputes: The local court. There is no deposit scheme or tribunal; a landlord recovers possession only through a court order.
Mandatory disclosures: An energy certificate shown at viewing; the operating costs the tenant pays, listed by category, if they are to be passed on.

Tax when the landlord lives abroad

Is the rent taxed here: Yes. Rent from German property is German-source income under § 49 EStG, taxed on net rent after loan interest, depreciation, repairs and management at the progressive scale of 14 to 45 percent plus solidarity surcharge, without the basic allowance a resident gets.
Withholding at source: No
Withholding rate: Not applicable
Who withholds: Not applicable
What the tenant must register: Not applicable
How to reduce it: Not applicable
Filing and tax ID: An annual return with Anlage V at the tax office for the district where the property sits, by 31 July or later with an adviser, with a German tax number issued on first filing. A sale within ten years of purchase is taxed as speculative gain.
VAT or GST on rent: None. Residential rent is exempt from VAT.
Municipal and housing fees: Property tax, reassessed under the 2025 reform, which the lease may pass on to the tenant as an operating cost.

Money inside the country

How tenants pay: SEPA transfer or standing order in euros.
Currency of rent: EUR
Bank account for a non-resident owner: Possible but selective; most German banks want a German address, and online banks and EU banks fill the gap. Rent may equally be paid to any euro account.
Paying rent to an overseas account: Allowed; any IBAN works, and SEPA covers the whole EU at domestic cost.
Taking rent out of the country: No exchange controls. A cross-border payment of EUR 50,000 or more is reported to the Bundesbank for statistics under § 67 AWV, by the person, not the bank; it is not a tax.

Living in India

What India asks of its residents who own and let property abroad.

Owning property abroad from here

Buying abroad: Allowed under the Liberalised Remittance Scheme: up to USD 250,000 per person per financial year, which relatives may pool for one property. Also by inheritance, by gift from a resident who owned it lawfully, or from income already held abroad.
Reporting foreign assets and accounts: Every resident reports foreign property, accounts and the income from them in Schedule FA of the annual return, with the rent itself in Schedule FSI. Leaving it out is penalised under the black money law.
Tax at home on foreign rent: Residents are taxed on worldwide income, so foreign rent is taxed in India at slab rates after the standard deduction. Tax paid abroad is credited through Form 67, filed before the return, under the treaty with that country or unilaterally where there is none.
Bringing rent home: No limit on bringing it back. Income from an LRS investment may be retained and reinvested abroad; if it is not reinvested it must be repatriated within 180 days of receipt. The bank records the purpose as income from property abroad.
Digital identity for e-signing: Aadhaar eSign signs any Indian document and a growing number of foreign platforms accept it. Where it is not accepted, a certificate-based digital signature from an Indian certifying authority, or the foreign platform's own e-signature, does the job.

Between India and Germany

What applies to this pair of countries in particular.

Tax treaty between the two countries: Yes
Withholding under the treaty: Not applicable: Germany withholds nothing on rent. The landlord files a German return with Anlage V and pays the progressive rate; India taxes the same rent at slab rates and credits the German tax through Form 67 under the treaty.
The usual vehicle for this corridor: A flat bought under the Liberalised Remittance Scheme through a notary on a Power of Attorney; a Hausverwaltung; a German tax number from the first return.
Banking blocks: German banks are slow to open accounts for non-residents; rent can be paid to any euro IBAN instead.
Typical remittance route and cost: Euros move to India by SEPA and SWIFT with no German restriction; India has no inbound limit, taxes the rent at slab rates, credits the German tax through Form 67, and takes Schedule FA disclosure.
What most people do: Buy under LRS, let open-ended through a Hausverwaltung, file Anlage V in Germany each year, and declare the rent, the credit and the account in India.

Sources

German Civil Code (BGB) § 550: written form for a lease over one year — www.gesetze-im-internet.de
BGB § 551: the deposit cap of three months' rent — www.gesetze-im-internet.de
BGB § 556d: the rent brake in designated tight markets — www.gesetze-im-internet.de
BGB § 558: rent increases to the local comparative rent and the cap — www.gesetze-im-internet.de
BGB § 573c: notice periods — www.gesetze-im-internet.de
Income Tax Act (EStG) § 49: German-source income of non-residents — www.gesetze-im-internet.de
EStG § 50: how non-residents are assessed — www.gesetze-im-internet.de
Foreign Trade Regulation (AWV) § 67: reporting cross-border payments to the Bundesbank — www.gesetze-im-internet.de
Deutsche Bundesbank: external sector reporting — www.bundesbank.de
Federal Ministry of Finance: double taxation agreements — www.bundesfinanzministerium.de
RBI Master Direction: Acquisition and Transfer of Immovable Property under FEMA — www.rbi.org.in
Ministry of External Affairs: acquisition and transfer of immovable property in India by NRIs and OCIs — www.mea.gov.in
RBI FAQ: Accounts in India by Non-residents (NRE, NRO, current income) — www.rbi.org.in
RBI FAQ: Remittance of Assets (the USD 1 million limit) — www.rbi.org.in
RBI FAQ: Liberalised Remittance Scheme — www.rbi.org.in
RBI FAQ: Purchase of immovable property outside India — www.rbi.org.in
Income Tax Department: TDS rates, including section 195 for non-residents — www.incometaxindia.gov.in
Income Tax Department: Form 13, certificate under section 197 for a lower or nil rate — www.incometaxindia.gov.in
Income Tax Department: Form 15CA, remittance to a non-resident — www.incometaxindia.gov.in
Income Tax e-filing portal: Form 67 FAQ, foreign tax credit — www.incometax.gov.in
Income Tax e-filing portal: guide to Schedules FA, FSI and TR — www.incometax.gov.in
The Registration Act, 1908 (Delhi Revenue Department copy), section 17 on leases — revenue.delhi.gov.in
MeitY: The Information Technology Act, 2000 (sections 3, 3A and 10A) — www.meity.gov.in
UIDAI: enrolment and update, who may enrol — uidai.gov.in
UIDAI: NRI Aadhaar enrolment — uidai.gov.in
PIB: Model Tenancy Act, states that have adopted it (25 July 2022) — www.pib.gov.in
PIB: draft Model Tenancy Act, the security deposit cap (11 July 2019) — www.pib.gov.in
StockHolding e-Stamping, the Central Record Keeping Agency — www.shcilestamp.com
IGR Maharashtra: leave and licence e-registration and stamp duty — igrmaharashtra.gov.in
GST Council: Notification 12/2017-Central Tax (Rate), exemption for residential dwellings — gstcouncil.gov.in
CBIC: Notification 04/2022-Central Tax (Rate), renting to a registered person — cbic-gst.gov.in
Controller of Certifying Authorities: digital signature certificates — cca.gov.in
Delhi Police: citizen services, including tenant registration — delhipolice.gov.in